The merger of the two regulated capital markets, the Bucharest Stock Exchange (BSE) and RASDAQ will be done next year, BSE manager Stere Farmache said. The merger will be possible to conduct following the enforcement of the new consolidated capital market law, scheduled for enactment by the end of this year.
The law will stipulate that BSE shall turn into a joint-stock company, which will legally allow it to merge with RASDAQ that currently operates as such.
The Stock Exchange manager says the company created by the merger could be listed on the capital market, given that its shareholders will not necessarily operate as brokers on the market. "The merger of the two exchanges has already been completed de facto: we share the same headquarters, have joint projects and experience the same problems. We only need to take care of the legal matters now," said Siminel Andrei, brokers' association chairman.
The consolidated capital market law is intended to bring the Romanian legislation in line with the regulations in the EU. The law draft stipulates that clearing shall be done by independent institutions within 18 months from enforcement. This will push the new market created by the merger to outsource these activities, which were supposed to be conducted by the Stock Exchange under the initial merger draft.
The merger draft officially presented in May stipulates all the services related to securities trading shall be integrated under the umbrella of a single entity, a measure bound to curb trading costs mainly.
The post-merger exchange structure will come to total more than $5bn in capitalisation, that is over 11% of GDP. According to Farmache, this year has been the best in the entire BSE history in terms of traded value. He reckons total traded value might very well go beyond $300 million this year.
On the other hand, the operation of the financial investment companies (SIF) would not be regulated by any special law, as some of the provisions concerning the SIFs would be included in the consolidated capital market law, National Securities Commission (CNVM) chairperson Gabriela Anghelache said.
The special law had been endorsed by the National Securities Commission, as well as signed by the Finance minister twice, i.e. before and after the governmental reshuffling.
"We came to the conclusion that the provisions on the financial investment companies have to be included in the new consolidated capital market law," Gabriela Anghelache, CNVM chairperson, said during the "Capital Market" seminar organised by FinMedia on Tuesday.
The latest consolidated capital market law draft publicly released included only an article on SIFs, which specified the law draft covered them, as well. Anghelache also said CNVM planned to add more provisions about SIFs in the consolidated law, which Romania should endorse by the end of the year, as committed to the EU. vlad.nicolaescu@zf.ro
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