FEDERATION OF EURO-ASIAN STOCK EXCHANGES
ANNUAL REPORT JUNE 2013
BUCHAREST STOCK EXCHANGE
7. Develop the dialog between BVB and
relevant institutions/authorities
BVB promotes a constructive dialogue with the
NSC, to the end of promoting proposals aiming
the development of stock exchange market.
Following the meetings with the NSC members
at BVB’s Board level, joint working groups were
set up at executive level intended to implement
the actions agreed by the senior management.
In addition, regular meetings with the
representatives of the relevant authorities were
organized to promote strategies proposed by
BVB (such as the promotion of a stimulating
taxation framework for issuers and investors,
the development of privatizations through stock
exchange mechanisms). A success in this
regard was the amendment to the Fiscal Code,
by which the number of tax statements afferent
to earnings/losses of value from transfer of
securities (other than shares and securities for
closed companies) was reduced, becoming
effective starting with January 1, 2013. Hence,
the four quarterly statements submitted before
this amendment were replaced by only one
annual tax statement, the number of payments
for the tax owed following such operations
being also reduced.
A remarkable event of the year was the
partnership with the London Stock Exchange,
which was marked by the official opening of a
trading session at BVB followed by the official
opening of a trading session at the LSE by a
delegation built up of representatives of the
capital market in Romania and chaired by a
representative of the Government of Romania.
Various events were organized for the purpose
of mutual knowing, experience exchange and
joint projects’ promotion.
During the year, BVB organized presentations
at several international events to the end of
promoting the Romanian capital market, its
potential and also the announced privatizations.
8. Increase BVB’s educational role
One of the objectives of this strategic direction
is to change BVB into an opinion leader with
regard to the capital market. To this end, an
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
educational programme was designed, its
beneficiaries being students, investors, issuers,
companies and mass-media.
The collaboration with Junior Achievement
Romania, a non-profit organization which
implements economic, entrepreneurial,
financial and professional orientation education
programmes in schools, generated several
activities and events which involved the capital
market, the stock exchange investments,
trading competitions and official prize
awarding. Hence, 4 conferences, 2 webinars
were organized in the country, as well as the
Job Shadow Day event for 2 high-school
students wishing to become brokers. A trading
competition was also organized in partnership
with JAR and Tradeville, to which more than 500
students participated.
The collaboration with the Bucharest School of
Business has led to the inclusion of the stock
exchange investment among the stages of “The
Apprentice” contest.
The “Afterschool BVB” Programme, a new
educational programme, opened the sequence
of interactive practical seminars, following the
interest expressed by investors for technical
and practical information. The project scope
for 2012 was to intensively train more than 150
existing and potential investors, Wall-street.ro
readers, in the field of financial instruments and
stock exchange mechanisms used by BVB.
BVB has organized several internship
programmes of which 11 students from
economic and legal areas benefited,
contributing in this manner to their familiarizing
with the special procedures and mechanisms,
training them either for a professional
orientation, or for the capacity of investor.
The conferences and seminars organized by
BVB or to which BVB actively participates are
likely to have the largest impact, due to the
opportunity of a direct dialogue with a great
number of participants. In this regard, 2012
was a very intense year, the 17 conferences
and seminars representing a record number
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.
compared to previous years. Among other
events organized by BVB or to which BVB
participated as partner, the following are worth
mentioning:
• an educational seminar for companies in
the portfolio of Fondul Proprietatea, during
which a presentation of the GEO 109/2011
and its effects was made (in partnership with
the Corporate Governance Institute and FP);
• an educational seminar for financial
managers of the companies listed with BVB
and of those included in FP’s portfolio (with
the support of Bloomberg);
• the “Capital Market Maturity” conference
(organized in partnership with Wall-street.
ro);
• an interactive workshop regarding the DOs
and DON’Ts survey on tender books and
execution of public offers for state-owned
companies through BVB (in partnership with
OPSPI and Erste Group Bank AG).
BVB has also actively participated in:
events for institutional investors, organized
by Wood&Company in Warsaw, by Erste
Bank in Vienna and by FP in Bucharest, the
“Entrepreneur, seeking financing” conference
organized by Wall-street.ro, the seminar on
stock exchange education, organized by
Wall-street.ro in partnership with Pioneer Asset
Management, the sequence of conferences
organized by International Business Promotion,
“New reality in business. Road toward
performance”.
BVB was equally concerned with continuing the
series of events under the “Open Doors Day
at the BVB” programme, aiming to familiarize
a high number of visitors with the basic
principles of the stock exchange operations,
the presentations under this programme
being adapted according to the age and
knowledge level specific for each targeted
group. The transparency level with regard to
BVB’s events and activities increased, with daily
communications on new products, novelties in
the regulatory field, events, decisions of BVB’s
Board, official openings intended to mark some
events or to honor certain personalities.
The most recent regulations are harmonized
with the latest EU legislation regarding the
capital market.
Institutional changes took place also during its
15 years of operation. Set up in the beginning
A new beginning for the Romanian capital
as a public interest institution, Bucharest Stock
market was in 1994 when Romanian Parliament
Exchange went through a demutualisation
passed the first capital market law, setting
process in 2005. The BVB externalised the
up the legal framework for creation of all new
registry/ clearing functions and the new Central
capital market institutions.
Depository was set up at the beginning of 2007,
having the Exchange its main shareholder.
The Bucharest Stock Exchange was re-
BVB, along with the Central Depository, the
established in April 1995, and the first trading
Corporate Governance Institute, the newly set
day took place on 20 November, same year.
up Bucharest Clearing House for the derivatives
From the beginning, the entire trading process
market and Investors Compensation Fund, is
took place in a dematerialised environment.
currently part of the BVB Financial Group.
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