Confusion on the Stock Exchange
Yesterday’s confusion on the stock exchange and the temporary suspension of trading was caused by the actions of the current management of the Warsaw Stock Exchange (GPW). They feared that the existing UTP (Universal Trading Platform) might fail. Even though in the past there were days when the number of transactions was much higher than on Monday, trading was not suspended then. Meanwhile, the rollout of the new, much more efficient WATS transaction system is delayed.
In a statement regarding the temporary trading suspension during the April 7, 2025 session, GPW announced that the halt was due to a record number of broker orders from the start of the session, “which could have led to destabilization of the trading system.” The number of operations on broker orders exceeded the average by more than 300% and was 40% higher compared to the April 4, 2025 session, the exchange explained, justifying its decision by the need to ensure “trading security.”
System Overload
Such steps are a result of the limited capacity of the current trading platform operating on the Warsaw Stock Exchange. According to experts, the UTP can process around 20,000 messages, while its predecessor, Warset, was capable of handling only 1,000. Since 2023, a new and tested system called WATS has been waiting for implementation at the GPW. It can handle up to 100,000 messages.
The exchange began developing its proprietary Warsaw Automated Trading System (WATS) back in 2019, securing nearly PLN 30 million in funding from the National Center for Research and Development. Initially planned for launch in the first quarter of 2024, the project was delayed due to the lack of enthusiasm from domestic brokerage houses to test the system under development. The latest statements from the exchange indicate a possible November launch this year, though it remains to be seen if this deadline will be met.
The effects of pressure from the exchange’s new management to delay the start of the new platform were evident during yesterday’s session.
Test Failed
Yesterday brought the moment of truth—and it failed. The GPW management got scared of the potential load on the current system. It was probably unnecessary, given that system loads in the past have been even higher without prompting trading suspensions. “In my opinion,” one experienced market analyst told Niezależna.pl, “they overreacted.”
When in recent years was a trading suspension considered? We asked Marek Dietl, president of the GPW management board between 2017 and 2024.
“It came up during COVID and at the onset of the war in Ukraine. We did not suspend trading, despite enormous pressure to do so. The advantage of a stock exchange is that it continues to operate, with trading ongoing. Yesterday we had a strange situation. Perhaps the deciding factor was the risk that the still-functioning trading system couldn’t handle the increased investor activity. Rather than spending the last year scrutinizing innovative projects and questioning the logic of developing a new trading platform, they should have implemented the new, super-efficient system—then there would be no problem,” Dietl told Niezależna.pl.
Management Negligence
Why is the exchange delaying the launch of a more robust system? It may stem from chaos and decisions by its new management.
“The Supervisory Board of the GPW, appointed in February 2024, created an atmosphere that everything was wrong, everything had to be scrapped, all ideas were bad, everything needed changing. For example, it asked the Management Board not to make any significant decisions until audits were completed. It called on employees to report on their areas without the management board present, which paralyzes an organization. The culmination came during the General Assembly meeting in June/July last year, when two members of the Management Board—including the one overseeing the WATS project—did not receive approval, effectively a vote of no confidence. Half a year later, WATS was acknowledged as an excellent idea. A great deal of time, energy, and money was wasted,” Dietl said.
When might the new system finally become operational? It could be another dozen months before we see it in action.