BUCHAREST STOCK EXCHANGE BUCHAREST STOCK EXCHANGE
Dec 25, 2015
BUCHAREST STOCK EXCHANGEBUCHAREST STOCK EXCHANGE
BRIEF HISTORYBRIEF HISTORY
July 1, 1881 July 1, 1881 “Law on exchanges, securities, and commodities brokers” was adopted after the French model
December 1, 1882 December 1, 1882 Bucharest Exchange was established under Royal Decree, upon the initiative of bankers and merchants First instruments traded First instruments traded 6 shares and 15 fixed-income securities
1934 - 19451934 - 1945
56 companies listed (mining, banking petroleum industries)
some of the listed companies were also traded on European markets (Paris, Anvers, Frankfurt, Amsterdam, Basel, Zurich, etc) 77 government and corporate bonds
1948 1948 Bucharest Exchange was closed due to the communist regime coming into power
Chamber of Commerce and Industry building that housed the Bucharest Exchange during 1911 - 1948
REOPENING OF THE EXCHANGEREOPENING OF THE EXCHANGE
ESTABLISHMENTESTABLISHMENT
April 21, 1995 April 21, 1995 Bucharest Stock Exchange was reopened after almost 50
years since closing down of the Bucharest Exchange - “Law no. 52/1994 on securities and stock exchanges”
- assistance granted by the Romanian and Canadian governments, National Bank of Romania, and Know How Fund
20 November 20, 199520 November 20, 1995 - first trading session - 24 founding members - 9 listed companies - fully electronic environment: automated trading system (A.T.E.S.) clearing-settlement and registry system (C.D.S.)
PURPOSEPURPOSE
since its reopening in 1995, BSE’s main purpose has been to provide efficient and transparent market mechanisms for trading in securities issued by major Romanian and international companies, investment funds, Government and local authorities
BSE CORPORATE STRUCTUREBSE CORPORATE STRUCTURE
ORGANIZATIONORGANIZATION
For- profit stock corporationFor- profit stock corporation January 10, 2005: BSE Association decided upon changing the legal status from an institution of public interest into a for-profit stock corporation
the share capital is equally divided among the 67 former member firms
BSE’s share capital of ROL 205,750,300,000 (face value of ROL 100,000)
BSE set up The Corporate BSE set up The Corporate Governance InstituteGovernance Institute BSE and BER merged into a single BSE and BER merged into a single entityentity November 30, 2005: BSE and BER shareholders approved the merger document.
In April 2003, BSE moved to a new location in the International Business Center Modern
ROMANIAN STOCK MARKET IN 2005ROMANIAN STOCK MARKET IN 2005
BUCHAREST STOCK EXCHANGE (BSE)
RASDAQMARKET (BER)
BSE ELECTRONIC PLATFORM
LISTEDCOMPANIES
TRADEDCOMPANIES
BSE & BER COOPERATION
UNLISTEDCOMPANIES
RegularOrder driven
DEALQuote driven
ODD LOT
Order driven Dealing
BERMost traded companies
Clearing&Settlement: BSE DepartmentBSE Department
Order driven
ROMANIAN STOCK MARKET: FUTUREROMANIAN STOCK MARKET: FUTURE
BUCHAREST STOCK EXCHANGE- Market operator -
BSEALTERNATIV
TRADING SYSTEM(ATS)
BSE REGULATED MARKET(OFFICIAL MARKET)
SPOT MARKET DERIVATIVE MARKET
SECTOR ASECTOR AMAIN MARKET
SECTOR BSECTOR BPARALLEL MARKET
SECTOR CSECTOR CNEW MARKET
SECTOR DSECTOR DFUNDS
SECTOR ESECTOR EBONDS ISSUED
BY PUBLIC ENTITIES
SECTOR FSECTOR FINTERNATIONAL
SECTOR
EQUITIES
BONDS
RIGHTS
EQUITIES
BONDS
RIGHTS
EQUITIES
BONDS
EQUITIES
UCITS
MUNICIPAL BONDS
GOVERNMENT BONDS
EQUITIES
BONDS
BUCHAREST STOCK EXCHANGEBUCHAREST STOCK EXCHANGE
• BSE’s main purpose is to provide an efficient and transparent market mechanism for trading in securities issued by major Romanian companies, Government and local authorities.
• Since BSE’s reopening in 1995, market operations have been conducted within a dematerialized environment, through fully electronic systems, in accordance with the international standards.
• Services delivered by BSE:– traditional services: trading, listing, data dissemination.– clearing and settlement through a special department
organized by BSE.– registry services.
BSE LISTINGBSE LISTING
• LISTED SECURITIESLISTED SECURITIES 3 sectors:
“Securities issued by Romanian legal entities” - TIER I - large and competitive companies (20 common stocks)
- TIER II (“base tier”) - medium size companies (44 common stocks)
- TRANSPARENCY TIER (“PLUS tier”) - companies from both tiers adhering to the BSE’s Corporate Governance Code (1 common stock)
“Bonds and other debt securities issued by the State, central and local administration, and by other public authorities and companies”
- municipal & corporate bonds (outstanding issues: 21)
“International Sector” - securities issued by foreign legal entities (no listings yet)
• UNLISTED SECURITIESUNLISTED SECURITIES “Traded but not listed companies” (42 common stocks)
TRADING TRADING
• MARKET INSTRUMENTS:MARKET INSTRUMENTS:– shares;
– municipal and corporate bonds;
– rights.
• REMOTE TRADINGREMOTE TRADING:
- fully dematerialized environment;
- electronic negotiation and confirmation of trades;
- trading is done through the market intermediaries’ (SSIF) terminals locate in their offices
• EFFICIENT PRICE DISCOVERYEFFICIENT PRICE DISCOVERY MECHANISM:MECHANISM:- order-driven and quote-driven;- full audit trail of orders and trades;- on-line trading information and statistics;- market surveillance tools;- flexibility in implementation of new market rules and financial instruments.
CLEARING & SETTLEMENT CLEARING & SETTLEMENT
• MAIN CHARACTERISTICS:MAIN CHARACTERISTICS:
– Rolling settlement cycle: T+3;
– Delivery Versus Payment (DVP);
– BIS model 2: net settlement for money & gross settlement for securities;
• PARTICIPANTS TO THE SETTLEMENT PROCESSPARTICIPANTS TO THE SETTLEMENT PROCESS:
- brokerage companies;
- custodians;
- settlement banks;
- Romanian National Bank (NBR)• 100% OF SETTLED TRANSACTIONS:100% OF SETTLED TRANSACTIONS:
– no failure to the settlement.
• COST EFFECTIVE:COST EFFECTIVE:– no specific fees for clearing and settlement
BSE: INFORMATION DISEMINATIONBSE: INFORMATION DISEMINATION
NEWS AGENCIES
BROKERSINTERNET
MEDIAISSUERS
BSE REGISTRYBSE REGISTRY
• REGISTRY STRUCTUREREGISTRY STRUCTURE– Section I: beneficial owner accounts opened by BSE for natural and legal persons.
The securities kept in accounts opened in this section are not subject to trading;
– Section II: beneficial owner accounts opened with brokerage houses/custodians by natural and legal persons that are clients;
– Section III: beneficial owner accounts opened by brokerage houses/custodians for their own account, when acting as principal.
• REAL TIME LINK BETWEEN EXCHANGE OPERATIONSREAL TIME LINK BETWEEN EXCHANGE OPERATIONS:
- trading system clearing-settlement & registry system;
- update of the securities holdings for each individual or nominee accounts;
- access to the consolidated list of holders of securities in BSE’s registry
• BSE SHALL EXTERNALIZE SETTLEMENT®ISTRY SERVICES IN THE NEXT FEW MONTHS TO THE NEW CENTRAL SECURITIES DEPOSITORY
BSE ELECTRONIC SYSTEMSBSE ELECTRONIC SYSTEMS
• MARKET OPERATIONSMARKET OPERATIONS since BSE’s reopening in 1995, market operations have been conducted
within a dematerialized environment, through fully electronic systems, in accordance with the international standards
• CURRENT ELECTRONIC SYSTEMCURRENT ELECTRONIC SYSTEM
ARENA - Automated Exchange PlatformTM implemented in-house by the BSE experts:
shares
fixed income securities
Note: Note: As of March 14, 2005March 14, 2005, trading in all securities listed at the BSE is performed only through the ARENAARENA electronic platform, thus discontinuing the market operations the HORIZON & EQUATOR systems previously employed for common stocks
BSE: MARKET INDICATORSBSE: MARKET INDICATORS
80 46 570307
312445 1,383
2,6232,964
8,819
15,311
0
2000
4000
6000
8000
10000
12000
14000
16000
mln
. EUR
MARKET CAPITALIZATION
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
152 46
1,162
725332
371601
9011,115
2,363
8,712
0
1000
2000
3000
4000
5000
6000
7000
8000
ths.
EUR
TURNOVER- daily average -
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 20052005
• Total capitalization and liquidity increased, but the market concentration remained high (both on turnover and capitalization).
BSE INDICESBSE INDICES
05
101520253035404550556065707580859095
100105110115120125130 %
05101520253035404550556065707580859095100105110115120125130%
BET BET-C BET-FI
2002 Ian Feb Mar Apr Mai Iun Iul Aug Sep Oct Nov Dec
2004 2005*
BSE indices in 2005:• BET: +51%;• BET-C: +38%;• BET-FI: +176%
0
10
20
30
40
50
60
70
80
90
100
110
120
130
140
150
160
170
180 %
0
10
20
30
40
50
60
70
80
90
100
110
120
130
140
150
160
170
180%
BET BET-C BET-FI
2002 Ian Feb Mar Apr Mai Iun Iul Aug Sep Oct Nov
INVESTORS ON THE BSEINVESTORS ON THE BSE
BSE investors structure in 2004
BSE investors structure in 2005
Persoane_juridice (rezidenti)
22%
Persoane_juridice (nerezidenti)
22%
Persoane_fizice (nerezidenti)
5%
Persoane_fizice (rezidenti)
51%
Persoane_juridice (rezidenti)
20%
Persoane_juridice (nerezidenti)
20%
Persoane_fizice (nerezidenti)
5%
Persoane_fizice (rezidenti)
55%
-
50
100
150
200
250
2000 2001 2002 2003 2004 2005*
M ontl y aver age tur nover
( doubl e c ounted)
Pers_fiz_rez. Pers_jurid_rez. Pers_fiz_nerez. Pers_jurid_nerez.
BSE IN FIGURES BSE IN FIGURES
Year
No. of T
radin
g Session
s
No. of T
rades
No. of S
hares T
raded
(volum
e)
Tu
rnover
Valu
e of Trad
es(E
UR
)
Cap
italization(E
UR
)
No. of C
omp
anies w
ith L
isted
Sh
ares
No. of N
ew L
istedC
omp
anies
No. of D
elisted C
omp
anies
No. of P
articipan
ts
No. of C
ustod
ian B
ank
s
1999 253 415,045 1,057,558,616 84,067,123 313,001,203 127 15 14 150 7
2000 251 496,887 1,806,587,265 93,244,168 450,512,639 114 1 14 120 7
2001 247 357,577 2,277,454,017 148,544,838 1,361,079,746 65 3 52 110 5
2002 247 689,184 4,085,123,289 222,426,577 2,646,438,376 65 1 1 75 6
2003 241 440,084 4,106,381,895 268,641,352 2,991,017,082 62 0 3 73 6
2004 253 644,839 13,007,587,776 598,072,158 8,818,832,158 60 3 5 67 6
2005 247 1,159,060 16,934,865,957 2,152,052,959 15,311,354,557 64 5 1 70 6
BSE INTERNATIONAL COOPERATION BSE INTERNATIONAL COOPERATION
MEMORANDUMS OF UNDERSTANDINGMEMORANDUMS OF UNDERSTANDING Athens Stock Exchange (1997)
Tokyo Stock Exchange (1999)
London Stock Exchange (2000)
Italian Exchange (2002)
Thessaloniki Stock Exchange Center (2003)
Wiener Börse AG (2004)
AFFILIATIONSAFFILIATIONS Member of the Central and Eastern Europe Central Securities Depositories and Clearing Houses Association (CEECSDA) - 1999
Correspondent Emerging Markets Member of the World Federation of Exchanges (WFE) - 1998
Correspondent Member the Federation of European Stock Exchanges (FESE) - 2002
Member of the Federation of Euro-Asian Stock Exchanges (FEAS) - 2003