Poland
20 January 2026
Poland boasts the largest equity market in Central and Eastern Europe, having reached unprecedented heights in 2025. Hansa Tote explores the drivers behind the growth, barriers to entry, and what to expect next
Image: stock.adobe.com/vladstar
Found in Central Europe, nestled between Germany and Belarus, Poland is known for its rich history and sites such as Wieloczka Salt Mine and Krakow鈥檚 Wawel Castle, as well as football legend Robert Lewandowski.
Poland is also one of Europe鈥檚 fastest growing securities markets, and represents the largest cleared interest rate derivatives market in the Central and Eastern European (CEE) region, according to Danny Chart, global product lead, OTC interest rate derivatives, at Eurex.
Chart highlights there are a number of factors that contribute to the Polish zloty having the largest cleared rate derivatives market in the region. He states it is due to Poland having the largest economy in CEE, a well developed financial sector, and significant trading volumes.
Roy Zimmerhansl, head of capital markets at WTS Hansuke, also explains that Poland is the largest equity market in CEE 鈥� with a 2.3 trillion Polish zloty market cap (US$676 billion) 鈥� ranking third in Europe by trading velocity. He states that, compared to peers such as Budapest, Prague, and Bucharest, Poland offers 鈥渟uperior鈥� liquidity and foreign investor participation, possibly creating significant borrowing demand.
Facts and figures
Data shows that the Polish securities market demonstrated exceptional growth across all key metrics in 2025, according to Matt Chessum, executive director, equity and analytic products at S&P Global Market Intelligence.
Chessum states that October 2025 marked a significant milestone as year-to-date (YTD) revenues generated from Polish equities surpassed those of last year 鈥� US$10.9 million, compared to US$8.2 million in 2024 鈥� a 32.9 per cent increase year-on-year (YoY).
He continues: 鈥淭his robust performance is part of a broader trend, with YTD revenues reaching US$13 million by the end of November, a remarkable 57.6 per cent increase over the same period in 2024. The second quarter of 2025 was particularly strong, generating US$3.1 million in revenue, representing a 65.6 per cent YoY growth.
鈥淭his surge in securities lending activity correlates directly with Poland's strengthening economic indicators and heightened market valuations, creating a favourable environment for securities lending activity.鈥�
The Polish market reached unprecedented heights in 2025, according to Chessum, with lending balances having hit all-time highs across multiple months. The total lendable assets have increased to US$24 billion as of November 2025, another record high, representing an 84 per cent increase compared to the same month in 2024. Utilisation rates have also improved significantly, averaging 10.3 per cent YTD compared to 7.9 per cent in 2024, a 31 per cent increase reflecting greater market efficiency.
The growth has been particularly evident in high-demand securities, says Chessum, such as with CCC, Jastrzebska Spolka Weglowa, Zabka Group, and Dino Polska 鈥� which emerged as the most popular borrowed securities of 2025.
Despite a slight decrease in average fees (0.55 per cent YTD in 2025 versus 0.62 per cent in 2024), the substantial increase in balances has more than compensated, driving the overall revenue surge as Polish equity valuations continue their upward trajectory.
However, there have been constraints to the growth of the market, notably the structural supply side limitations, says Zimmerhansl. He explains: 鈥淧ension fund reforms since 2014 dismantled the open pension funds system, reducing domestic institutional equity holdings from PLN500 billion to PLN220 billion by 2023.
鈥淭he Pracownicze Plany Kapita艂owe system, launched in 2019, remains small 鈥� PLN30 billion assets by the end of 2024 鈥� limiting lendable inventory. Insurance companies also favour conservative portfolios, avoiding equities that could be lent, preferring fixed income assets.鈥�
Krajowy Depozyt Papier贸w Warto艣ciowych (KDPW), the central securities depository (CSD) of Poland, reports that in 2025, Poland recorded the highest economic growth in three years, with the Warsaw Stock Exchange, or Gie艂da Papier贸w Warto艣ciowych w Warszawie (WSE, or GPW) seeing record turnover with stock market indices breaking new records.
In the same report, KDPW highlights the Polish capital market would not have seen such growth had it not been for local institutions boosting the interest of Polish investors while investing in the development of the capital market.
Barriers and challenges
Despite recent growth, there continues to be barriers to entry into the Polish securities landscape faced by potential participants. Andrzej Szadkowski, head of 网爆吃瓜 Services Poland, BNP Paribas, comments: 鈥淲ith the largest economy in the region, a relatively liquid Warsaw Stock Exchange and a growing investor base, the Polish market appears to be an attractive opportunity for foreign fund managers, brokers, and other institutional investors.鈥�
Despite these seemingly promising aspects of the market, Szadkowski notes the Polish post-trade environment can differ from the rest of Europe. 鈥淎lthough Poland is a part of EU subject to European regulations such as MIFID/MIFIR, CSDR, and SRD II, there are still some distinct barriers 鈥� ranging from specific operational standards and local currency liquidity to taxation and political uncertainty.鈥�
He explains that, unlike many EU jurisdictions that have multiple CSDs and central counterparties (CCPs) cooperating, Poland relies on the KDPW and KDPW_CCP, platforms that remain only partly interoperable with pan-European infrastructures such as Euroclear, Clearstream, or the Target2-网爆吃瓜 (T2S) platform.
Further, Szadkowski says that while KDPW and KDPW_CCP, local custodians, and clearing members offer a robust and reliable post-trade platform, the market may still feel more expensive and less liquid compared to developed markets, making it seem less desirable.
Additionally, there are operational features that differ from the customary operational routine of foreign investors, including the need to provide a power of attorney in order to partake in shareholder meetings or tender offers/rights execution events.
He mentions that while the local currency might be a 鈥渂lessing鈥� for investors seeking an FX investment opportunity, it can also create issues for investors looking to simply settle their equities or bonds trades smoothly. This is due to investors and their custodians needing to align their treasury and cash management processes while adapting to KDPW multi-batch settlement timing.
Zimmerhansl comments on the barriers to entry into the market, stating: 鈥淭he absence of major domestic institutional investors is a gap in the 鈥榤ust-haves鈥� for a deep and rich lending to evolve.鈥�
He also underlines the burden created by regulations, noting EMIR 3.0, T+1, and Warsaw Automated Trading System (WATS) deployment create compliance and technological challenges, with secondary frictions including: geopolitical risk perception and KNF鈥檚 (Poland鈥檚 Financial Supervision Authority) cautious regulatory stance.
鈥淐ollectively, these barriers slow market development despite strong underlying cash market conditions,鈥� he adds.
EMIR 3.0
EMIR 3.0 refers to the most recent revision of the European Market Infrastructure Regulation (EMIR), that came into force on 24 December 2024, with the main objective being to increase the competitiveness of the European central counterparties while promoting clearing activity in the region.
In November 2025, Eurex Clearing began developing a Polish zloty interest rate swap clearing market to directly respond to the new regulatory landscape under EMIR 3.0. Chart highlights that this includes launching the zloty to the firm鈥檚 range of tradable financial instruments.
Discussing the impact EMIR 3.0 has had on the Polish market, Zimmerhansl explains it introduces the Active Account Requirement (AAR), mandating Polish CCPs to maintain active clearing accounts at EU CCPs for euro and zloty interest rate derivatives.
He states: 鈥淐ompliance requires clearing minimum trades per product category and posting margin across multiple CCPs (KDPW_CCP and Eurex), creating collateral fragmentation and operational complexity.鈥�
Zimmerhansl claims the impact on securities lending in Poland is 鈥渋ndirect but significant鈥� as margin lockup reduces lendable inventory as high-quality securities are retained for CCP margin. The timing also introduces challenges, with AAR implementation (2026鈥�2027) coinciding with the T+1 settlement transition which may cause strain on operational resources.
Looking to the future
The upcoming years will see substantial developments in the securities finance industry in Poland, with Szadkowski highlighting the country will develop two complementary securities market ecosystems 鈥� a public equity market and a private equity market.
Szadkowski comments that the post-trade environment is evolving 鈥渞apidly鈥�, and that 鈥渢he post trade layer 鈥� the engine that keeps the market running smoothly and safely 鈥� will assume greater importance鈥�.
As a part of the EU financial market, Poland is scheduled to move to the shorter settlement cycle on 11 October 2027, a shift he notes is more than an operational tweak, but a strategic investment that enhances operational capability. 鈥淩ather than a checklist item, the transition offers a chance to reassess processes, challenge the status quo, and make lasting efficiencies.鈥�
Speaking from the perspective of BNP Paribas鈥� 网爆吃瓜 Services business, Szadkowski says that joining the T+1 group is strategic, and needed to keep the Polish market competitive, with proper implementation raising market efficiency by increasing the number of settlement batches and modernising trade reporting.
鈥淐hanges will not stop with T+1. The transition, slated to extend beyond October 2027, will open the path to further digitalisation of the sector,鈥� he continues.
2026 will see the go-live of the WSE鈥檚 WATS, having been postponed in 2025 鈥� a project that aims to modernise operations and enhance efficiency for the WSE by improving the quality and efficiency of exchange operations through advanced functionalities, while enhancing the security and reliability of trading, according to a report by the GPW.
Zimmerhansl notes that the deployment of WATS 鈥渟hould further enhance trading velocity and attract further international participants鈥�, despite the delayed implementation.
He concludes: 鈥淥verall, Poland will remain a niche but maturing market, with growth contingent on domestic supply development, regulatory clarity, and international infrastructure engagement.鈥�
Poland is also one of Europe鈥檚 fastest growing securities markets, and represents the largest cleared interest rate derivatives market in the Central and Eastern European (CEE) region, according to Danny Chart, global product lead, OTC interest rate derivatives, at Eurex.
Chart highlights there are a number of factors that contribute to the Polish zloty having the largest cleared rate derivatives market in the region. He states it is due to Poland having the largest economy in CEE, a well developed financial sector, and significant trading volumes.
Roy Zimmerhansl, head of capital markets at WTS Hansuke, also explains that Poland is the largest equity market in CEE 鈥� with a 2.3 trillion Polish zloty market cap (US$676 billion) 鈥� ranking third in Europe by trading velocity. He states that, compared to peers such as Budapest, Prague, and Bucharest, Poland offers 鈥渟uperior鈥� liquidity and foreign investor participation, possibly creating significant borrowing demand.
Facts and figures
Data shows that the Polish securities market demonstrated exceptional growth across all key metrics in 2025, according to Matt Chessum, executive director, equity and analytic products at S&P Global Market Intelligence.
Chessum states that October 2025 marked a significant milestone as year-to-date (YTD) revenues generated from Polish equities surpassed those of last year 鈥� US$10.9 million, compared to US$8.2 million in 2024 鈥� a 32.9 per cent increase year-on-year (YoY).
He continues: 鈥淭his robust performance is part of a broader trend, with YTD revenues reaching US$13 million by the end of November, a remarkable 57.6 per cent increase over the same period in 2024. The second quarter of 2025 was particularly strong, generating US$3.1 million in revenue, representing a 65.6 per cent YoY growth.
鈥淭his surge in securities lending activity correlates directly with Poland's strengthening economic indicators and heightened market valuations, creating a favourable environment for securities lending activity.鈥�
The Polish market reached unprecedented heights in 2025, according to Chessum, with lending balances having hit all-time highs across multiple months. The total lendable assets have increased to US$24 billion as of November 2025, another record high, representing an 84 per cent increase compared to the same month in 2024. Utilisation rates have also improved significantly, averaging 10.3 per cent YTD compared to 7.9 per cent in 2024, a 31 per cent increase reflecting greater market efficiency.
The growth has been particularly evident in high-demand securities, says Chessum, such as with CCC, Jastrzebska Spolka Weglowa, Zabka Group, and Dino Polska 鈥� which emerged as the most popular borrowed securities of 2025.
Despite a slight decrease in average fees (0.55 per cent YTD in 2025 versus 0.62 per cent in 2024), the substantial increase in balances has more than compensated, driving the overall revenue surge as Polish equity valuations continue their upward trajectory.
However, there have been constraints to the growth of the market, notably the structural supply side limitations, says Zimmerhansl. He explains: 鈥淧ension fund reforms since 2014 dismantled the open pension funds system, reducing domestic institutional equity holdings from PLN500 billion to PLN220 billion by 2023.
鈥淭he Pracownicze Plany Kapita艂owe system, launched in 2019, remains small 鈥� PLN30 billion assets by the end of 2024 鈥� limiting lendable inventory. Insurance companies also favour conservative portfolios, avoiding equities that could be lent, preferring fixed income assets.鈥�
Krajowy Depozyt Papier贸w Warto艣ciowych (KDPW), the central securities depository (CSD) of Poland, reports that in 2025, Poland recorded the highest economic growth in three years, with the Warsaw Stock Exchange, or Gie艂da Papier贸w Warto艣ciowych w Warszawie (WSE, or GPW) seeing record turnover with stock market indices breaking new records.
In the same report, KDPW highlights the Polish capital market would not have seen such growth had it not been for local institutions boosting the interest of Polish investors while investing in the development of the capital market.
Barriers and challenges
Despite recent growth, there continues to be barriers to entry into the Polish securities landscape faced by potential participants. Andrzej Szadkowski, head of 网爆吃瓜 Services Poland, BNP Paribas, comments: 鈥淲ith the largest economy in the region, a relatively liquid Warsaw Stock Exchange and a growing investor base, the Polish market appears to be an attractive opportunity for foreign fund managers, brokers, and other institutional investors.鈥�
Despite these seemingly promising aspects of the market, Szadkowski notes the Polish post-trade environment can differ from the rest of Europe. 鈥淎lthough Poland is a part of EU subject to European regulations such as MIFID/MIFIR, CSDR, and SRD II, there are still some distinct barriers 鈥� ranging from specific operational standards and local currency liquidity to taxation and political uncertainty.鈥�
He explains that, unlike many EU jurisdictions that have multiple CSDs and central counterparties (CCPs) cooperating, Poland relies on the KDPW and KDPW_CCP, platforms that remain only partly interoperable with pan-European infrastructures such as Euroclear, Clearstream, or the Target2-网爆吃瓜 (T2S) platform.
Further, Szadkowski says that while KDPW and KDPW_CCP, local custodians, and clearing members offer a robust and reliable post-trade platform, the market may still feel more expensive and less liquid compared to developed markets, making it seem less desirable.
Additionally, there are operational features that differ from the customary operational routine of foreign investors, including the need to provide a power of attorney in order to partake in shareholder meetings or tender offers/rights execution events.
He mentions that while the local currency might be a 鈥渂lessing鈥� for investors seeking an FX investment opportunity, it can also create issues for investors looking to simply settle their equities or bonds trades smoothly. This is due to investors and their custodians needing to align their treasury and cash management processes while adapting to KDPW multi-batch settlement timing.
Zimmerhansl comments on the barriers to entry into the market, stating: 鈥淭he absence of major domestic institutional investors is a gap in the 鈥榤ust-haves鈥� for a deep and rich lending to evolve.鈥�
He also underlines the burden created by regulations, noting EMIR 3.0, T+1, and Warsaw Automated Trading System (WATS) deployment create compliance and technological challenges, with secondary frictions including: geopolitical risk perception and KNF鈥檚 (Poland鈥檚 Financial Supervision Authority) cautious regulatory stance.
鈥淐ollectively, these barriers slow market development despite strong underlying cash market conditions,鈥� he adds.
EMIR 3.0
EMIR 3.0 refers to the most recent revision of the European Market Infrastructure Regulation (EMIR), that came into force on 24 December 2024, with the main objective being to increase the competitiveness of the European central counterparties while promoting clearing activity in the region.
In November 2025, Eurex Clearing began developing a Polish zloty interest rate swap clearing market to directly respond to the new regulatory landscape under EMIR 3.0. Chart highlights that this includes launching the zloty to the firm鈥檚 range of tradable financial instruments.
Discussing the impact EMIR 3.0 has had on the Polish market, Zimmerhansl explains it introduces the Active Account Requirement (AAR), mandating Polish CCPs to maintain active clearing accounts at EU CCPs for euro and zloty interest rate derivatives.
He states: 鈥淐ompliance requires clearing minimum trades per product category and posting margin across multiple CCPs (KDPW_CCP and Eurex), creating collateral fragmentation and operational complexity.鈥�
Zimmerhansl claims the impact on securities lending in Poland is 鈥渋ndirect but significant鈥� as margin lockup reduces lendable inventory as high-quality securities are retained for CCP margin. The timing also introduces challenges, with AAR implementation (2026鈥�2027) coinciding with the T+1 settlement transition which may cause strain on operational resources.
Looking to the future
The upcoming years will see substantial developments in the securities finance industry in Poland, with Szadkowski highlighting the country will develop two complementary securities market ecosystems 鈥� a public equity market and a private equity market.
Szadkowski comments that the post-trade environment is evolving 鈥渞apidly鈥�, and that 鈥渢he post trade layer 鈥� the engine that keeps the market running smoothly and safely 鈥� will assume greater importance鈥�.
As a part of the EU financial market, Poland is scheduled to move to the shorter settlement cycle on 11 October 2027, a shift he notes is more than an operational tweak, but a strategic investment that enhances operational capability. 鈥淩ather than a checklist item, the transition offers a chance to reassess processes, challenge the status quo, and make lasting efficiencies.鈥�
Speaking from the perspective of BNP Paribas鈥� 网爆吃瓜 Services business, Szadkowski says that joining the T+1 group is strategic, and needed to keep the Polish market competitive, with proper implementation raising market efficiency by increasing the number of settlement batches and modernising trade reporting.
鈥淐hanges will not stop with T+1. The transition, slated to extend beyond October 2027, will open the path to further digitalisation of the sector,鈥� he continues.
2026 will see the go-live of the WSE鈥檚 WATS, having been postponed in 2025 鈥� a project that aims to modernise operations and enhance efficiency for the WSE by improving the quality and efficiency of exchange operations through advanced functionalities, while enhancing the security and reliability of trading, according to a report by the GPW.
Zimmerhansl notes that the deployment of WATS 鈥渟hould further enhance trading velocity and attract further international participants鈥�, despite the delayed implementation.
He concludes: 鈥淥verall, Poland will remain a niche but maturing market, with growth contingent on domestic supply development, regulatory clarity, and international infrastructure engagement.鈥�
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