FEDERATION OF EURO-ASIAN STOCK EXCHANGES
ANNUAL REPORT JUNE 2012
BUCHAREST STOCK EXCHANGE
Bucharest Stock Exchange is today an
institution and a market with a great
potential for development.
Stere Farmache
President of the Board of Governors
In 2011, the Bucharest Stock Exchange was
influenced by the volatile international market
climate, the blue chips index BET closing
the year at 4,337 points, 18% under its start
value. Amid the decrease of the indices, the
Romanian capital market registered positive
evolution in 2011 in terms of daily average
turnover, which was almost 75% higher than the
2010 value. There was also a series of events
mainly relevant in terms of quality and which will
influence the future evolution of the local stock
exchange.
Remember firstly the listing of Fondul
Proprietatea on BVB, along with other 6
companies on the regulated market. The listing
of Fondul Proprietatea opened the road to new
developments in terms of trading mechanisms,
HISTORY AND DEVELOPMENT
There are more than 125 years since the first
trading floor opened its doors in the centre of
Bucharest, very close to the National Bank, on
the 1st of December 1882. This event followed
the first “Law on bourses, mercantile traders
and intermediaries” enacted in 1881, following
the French model. This bill was the legal
framework for the functioning of the stock and
mercantile exchanges in Romania.
It developed into a very dynamic exchange due
to the companies listed, mainly from sectors like
banking, mining, oil, insurance and transport.
During the wars, as the entire Romanian
economy flourished, the Stock Exchange also
recorded its booming period. In 1935 there were
56 shares listed and 77 fixed income securities.
After a peak in 1938, the Stock Exchange was
closed in 1948, when the new communist
regime nationalized all companies.
A new beginning for the Romanian capital
market was in 1994 when Romanian Parliament
passed the first capital market law, setting
up the legal framework for creation of all new
capital market institutions.
like short selling, or extending the use of
global accounts to shares issued by domestic
companies.
2011 was an important year for new financial
instruments, as it was created the REITs tier
and was diversified the range of underlying
assets for derivatives available for trading.
On the structured products segment, 60
series of certificated were listed, registering
an increase of 5% year-on-year of the daily
market value. A significant record was reached
by the derivatives market, up to 50 series of
futures contracts being launched. In terms of
the Alternative Trading System, a total of 10
new international companies are available for
trading on it.
Bucharest Stock Exchange is today an
institution and a market with a great potential
for development, primarily from the perspective
of privatization of the majority stake in state
owned companies, to be done in the near
future and that became posible thanks to the
sustained and promotion efforts, conducted
during many years by BVB and all direct
stakeholders.
Bucharest Stock Exchanges works to achieve
its goal of becoming a regional financial center.
The most recent regulations are harmonized
with the latest EU legislation regarding the
capital market. Derivatives market: new futures contracts with
commodities, index, shares and currencies as
underlying.
Institutional changes took place also during its
15 years of operation. Set up in the beginning
as a public interest institution, Bucharest Stock
Exchange went through a demutualisation
process in 2005. The BVB externalised the
registry/ clearing functions and the new Central
Depository was set up at the beginning of 2007,
having the Exchange its main shareholder.
BVB, along with the Central Depository, the
Corporate Governance Institute, the newly set
up Bucharest Clearing House for the derivatives
market and Investors Compensation Fund, is
currently part of the BVB Financial Group. Structured products: certificates turbo long
and short issued by Erste Group Bank AG and
Raiffeisen Centrobank AG with index, shares,
commodities, currencies as underlying.
Key figures in 2011
New listed companies: Fondul Proprietatea,
Concefa, Retrasib, Electromagnetica, Artego
REITs: New Property Investments
New shares on the BVB Alternative Trading
System: E.ON AG, Deutsche Telekom AG and
Bayer AG, Christian Dior, Danone, Heineken and
L’Oreal shares
News:
• the trading session for structured products
and securities traded within ATS International
The Bucharest Stock Exchange was re-
was extended.
established in April 1995, and the first trading
• global accounts and non pre-validation
day took place on 20 November, same year.
mechanisms availability for the shares in the
From the beginning, the entire trading process
BET index developed by BVB.
took place in a dematerialised environment.
• new Market Makers for BVB regulated
spot,derivatives and ATS markets.
FUTURE OUTLOOK
BVB projects in 2012:
• Improve the market infrastructure with global
accounts trading for the whole market.
• Attract new market makers on spot and
derivatives markets, for increasing the
liquidity of the financial instruments.
• List new companies on spot market in
partnership with intermediaries, advisory
firms and other partners.
• Support the projects initiated by the
Government regarding the sale through BVB
of different share packages in state owned
companies (SPOs for 15% of Transelectrica,
Transgaz, IPO for Romgaz, Hidroelectrica,
Nuclearelectrica and others, SPO for 9,8% of
Petrom).
• Bring more foreign shares to trade on ATS.
• Develop the structured products market.
• Develop new products in cooperation with
other institutions (ETFs, new indices).
• Increase the role of corporate governance for
all the capital market participants.
PAGE 43