JUNE 2013 - FEAS

FEDERATION OF EURO-ASIAN STOCK EXCHANGES ANNUAL REPORT JUNE 2013
BUCHAREST STOCK EXCHANGE
Lucian Anghel
President of the Board of Governors
BVB’s Board approved facilities intended to
stimulate the listing of new companies on
the regulated market and on the alternative
trading system.
1. Support the successful closing of the
state companies’ public offers
During the first part of 2012, BVB designed and
publicly submitted the technical and operational
offer for running public offers through BVB.
Out of the announced privatization program,
the secondary public offer for Transelectrica
was the only finalized offer, but represented
a real success. During the first stage, BVB
contributed to the promotion of the offer, by
participating, along with the SPO syndicate,
to a series of external dedicated roadshows,
and by marketing the offer, through all
accessible national and international
means. BVB answered to participants’ and
investors’ requirements by upgrading its rules
and systems in order to comply with best
international practices, as well as by ensuring
transparency to the subscription process.
Also, BVB got involved in regulatory activities
and in activities of consultation of the main
stakeholders and representatives of the
involved authorities, with a view to increasing
the chances of success for future offers. The
Cooperation Memorandum with OPSPI was
extended, and conferences, seminars and
workshops were organized, having as topic the
public offers executed via the stock exchange.
2. List new companies on BVB and
increase the number of active investors
In 2012, BVB continued its activities to attract
new private companies on the stock exchange
and to promote funding through the local
capital market. These activities were aimed at
monitoring the press, identifying and selecting
potential companies meeting the requirements
to be admitted to trading on the regulated
market or on the alternative trading system
managed by BVB, as well as at documenting
on the selected potential companies and
economic sectors within they operate, at
organizing meetings with such companies and
follow-up.
BVB’s Board approved facilities intended to
stimulate the listing of new companies on
the regulated market and on the alternative
trading system, both for issuers (exemption
from payment of the processing fee and
the fee for admission to trading), and for
initiating companies (maintaining the measure
on granting an EUR 2,000 bonus to each
Participant which brings an issuer for listing
on the regulated market and EUR 500 bonus
to each Participant which brings an issuer for
listing on the alternative trading system).
Since the beginning of the last year,
amendments to the BVB Code were operated,
enabling the admission to trading on ATS of
companies originating from non-EU member
states. After the approval by the NSC of those
amendments, by the end of March 2012, the
first 5 American companies started trading
on BVB’s ATS, their number increasing to
11 during the year. Also, other 5 companies
originating from EU member states started
trading on the ATS (the International Section),
their number reaching 26 by end-2012. Also,
the first Romanian company listed on ATS
started trading on this market.
BVB supported the companies intending to
become listed on the ATS segment and the
brokers by preparing a set of recommendations
regarding the information to be included in the
companies’ presentation documents for their
listing on CAN-ATS.
The promotion of the capital market among
investors was made by organizing and
participating to some events as the “Actuality
in business” conference, organized by
doingbusiness.ro, and “Entrepreneur, seeking
financing” organized by Wall-Street.ro. Also,
in 2012, “BVB Afterschool Investor” seminar
took place, dedicated to the presentation of
the financing through the capital market to
Romanian SMEs.
3. Develop capabilities, products and
services offered by BVB Group
Last year, BVB supported the development
of the structured product segment, the
average number of such instruments available
registering a significant increase compared to
2011. During 2012, a novelty element was the
launching of the first bonus certificates issued
by Erste Bank. The same issuer also brought to
the market the first certificates having the E-mini
S&P 500 futures contract as underlying asset.
The development of the structured product
segment also benefited from SSIF Broker’s
initiative to join Erste Bank and Raiffeisen
Centrobank in the process of designing such
instruments, becoming the first Romanian
issuer of structured products.
BVB continued the steps started in 2011,
by operating amendments to the BVB Code
related to the implementation of a deal market
for structured products, as well as a market
for trading the redemption value related
to individual issues of turbo certificate, in
two successive trading sessions, when the
“knock-out” price corresponding to the issue in
question is reached.
2012 was also the year of launching the first
Romanian ETF - undertakings for collective
investments in transferable securities admitted
to trading on the regulated market, having as
investment policy objective the tracking (fully or
partially) of BET index.
BVB also supported mutual funds active in
Romania, by building an investible index,
namely the BET-BK index (Bucharest Exchange
Trading Benchmark Index), to be used by
fund managers as reference index. BVB
answered this need by including BVB-listed
foreign companies in the index structure
and by implementing a calculation method
which reflects the legal requirements and the
investment limits of the funds (the calculation
of the index takes into consideration criteria
related to liquidity and the weights of the
included companies).
Another object achieved last year is the
extension of the applicability of the global
accounting system and the non-pre-validation
mechanism to all financial instruments admitted
to trading on BVB’s regulated spot market,
enabling consistency with mechanisms used
by developed capital markets, higher market
attractiveness and accessibility for brokers.
With regard to the technological platform and
market architecture, in 2012 BVB invested
in the development of the infrastructure of
its own Data Center in compliance with the
requirements of the NSC Instruction No
2/2011, the ESMA-EMIR requirements and
the requirements of other standards in the
field. These investments reflect the need
for development and upgrading, taking into
consideration the operating level reached by
BVB in the last years, as well as the need to
eliminate existing operating risks.
BVB made efforts to develop the infrastructure
with a view to supporting public offers, by
taking measures involving:
• flexibility, by configuring public offers in
compliance with the prospectus approved
by the NSC and the technical protocol
between BVB and the intermediary of the
public offer (which may require ways of
disseminating subscriptions in real-time,
implementing various types of allocations,
etc)
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