Bursa de Valori Bucuresti (Bucharest Stock Exchange, BVB), the most important institution of the local capital market, organizes and manages the regulated markets of financial instruments under European standards. BVB became a joint stock company in 2005, and listed on the stock exchange on June 2010.
BVB is part of the BET index, the blue-chip index of Romanian capital market. However, the company is part of other local indexes or indexes which follow the trend of globally listed stock exchanges, like FTSE / Mondo Visione Exchanges or Dow Jones Global Exchanges.
Bucharest Stock Exchange offers a financing alternative to both mature companies, which can raise capital through the Main Market, as well as start-ups and SMEs for which the AeRO market was created. Both markets are able to accommodate shares and bonds issuances. In 2017 and 2018 ran equity IPOs totalling EUR 312.2 mn, while 12 bond issues and listings reached EUR 2.40 bn.
The global index provider MSCI published on June 20, 2018, its latest Global Market Accessibility Review. The report stated that Romania continued its efforts to improve the liquidity and participation in the stock market by lowering trading fees and encouraging more market makers to boost market activity, and that notable activities for the Romanian equity market also included the launch of Issuers Reporting Information System, where listed companies are able to release their communication to the market efficiently. Therefore, Romania’s accessibility criteria were upgraded on 3 notes: market regulations, information flow and trading.
As per the FTSE Russell country classification review of September 2018, the Romanian capital market was maintained on the Emerging Market Watchlist and is one step closer to obtain the upgrade. The single outstanding criterion is Liquidity – Sufficient broad market liquidity to support sizeable global investment. FTSE upgraded from ‘Not Met’ to ‘Restricted’ the Liquidity criterion, following an
improvement in broad market liquidity.