1st step - Contact one of Prague Stock Exchange (PSE) members

  • Trades at the Exchange may only be made through Exchange members, i.e. major banks and brokerage companies list of Exchange members
  • We recommend to contact more PSE members and choose the most suitable offer according to conditions (range of services, fees, data access, member‘s availability etc.)

2nd step - Sign contract with PSE member

  • Commission contract, Dealer agreement…
  • Questionnaire for investors

3rd step - Place orders for trading with investment instruments

  • Order placement via phone (to PSE member)
  • On-line trading platforms for clients
  • Portfolio management (personal broker‘s services)

 

Requirements for investors

  • Proof of identity (passport, ID card)
  • Existence of an asset account in CSD Prague

    • In the case that investor does not have such account, the PSE member will manage its opening

  • Cash account

    • Funds for purchase of investment instruments, fees, …

  • A company (legal entity) moreover :

    • Certificate of Incorporation
    • Only responsible persons or persons with the power of attorney are eligible to act on behalf of the company

 

The process of trading of foreign investment instruments

Purchase of foreign investment instruments and their subsequent transfer to an account held at a foreign depository

  • Purchase of instrument in the Xetra® Prague trading system
  • PSE member which is responsible for investor‘s trades on PSE sends instruction for the transfer of purchased instruments from the investor‘s account at CSD Prague to the respective foreign depository. Subsequently investor‘s account manager responsible for the investor‘s account at the foreign depository sends instruction to receive the transfer of purchased instruments
  • These two instructions are "confirmed" and CSD Prague transfers the given instruments to the foreign depository

Sale of instruments held on the investor‘s asset account at a foreign depository

  • Sale of instrument in the Xetra® Prague trading system
  • Investor‘s account manager responsible for the investor‘s account at the foreign depository sends instruction for the transfer of sold instruments from the account held at this foreign depository to CSD Prague. Subsequently PSE member which is responsible for investor‘s trades on PSE sends instruction to receive the given sold instruments to the investor‘s account held at CSD Prague.
  • These two instructions are "confirmed" and CSD Prague receives the given sold instruments from the foreign depository.

Cooperation between CSD Prague and foreign depositories

  • Clearstream Bank Luxembourg (CBL)
  • DTC (USA)
  • OeKB (Austria)
  • Euroclear (France, Netherlands...)
  • CREST (GB)

In general

  • All returns, corporate actions and tax refunds for foreign instruments registered at CSD Prague are provided
  • Transfers between depositories are chargeable, fees are included in the Fee schedule of CSD Prague
  • Transfer of instruments is only possible between depositories acting as a place of settlement for given instruments
  • Transfers between depositories do not affect the settlement day (T+2)
  • In the Xetra® Prague system there is no difference in trading of foreign vs. domestic instruments
  • In the CSD Prague system, in the case where the investor does not need the transfer between depositories as a part of the settlement process, there is no difference in settlement of foreign and domestic instruments
  • One instrument (issue) has always only one ISIN code. This ISIN is unique for all exchanges where the given instrument is registered for trading and for all respective depositories

 

Contacts


Jana Horová, Tomáš Krejčí

Trading – Prague Stock Exchange

trading@pse.cz
+420 221 832 146


Tomáš Lněnička

Settlement – Central Securities Depository Prague

lnenicka@pse.cz
+420 221 832 242


Eva Miškovská, Zdena Kadlecová

Settlement of foreign instruments

miskovska@pse.cz, kadlecova@pse.cz
+420 221 832 237, +420 221 832 818