The Bucharest Stock Exchange (BVB) (
Romanian
Romanian may refer to:
*anything of, from, or related to the country and nation of Romania
**Romanians, an ethnic group
**Romanian language, a Romance language
***Romanian dialects, variants of the Romanian language
**Romanian cuisine, traditional ...
: ''Bursa de Valori București'') is the
stock exchange
A stock exchange, securities exchange, or bourse is an exchange where stockbrokers and traders can buy and sell securities, such as shares of stock, bonds and other financial instruments. Stock exchanges may also provide facilities for th ...
of
Romania
Romania ( ; ro, România ) is a country located at the crossroads of Central Europe, Central, Eastern Europe, Eastern, and Southeast Europe, Southeastern Europe. It borders Bulgaria to the south, Ukraine to the north, Hungary to the west, S ...
located in
Bucharest
Bucharest ( , ; ro, București ) is the capital and largest city of Romania, as well as its cultural, industrial, and financial centre. It is located in the southeast of the country, on the banks of the Dâmbovița River, less than north of ...
. In 2019, the capitalization of BVB increased 23.4% compared to the previous year, to the value of EUR 37.8 billion. At the end of 2019 there were 83 companies listed on the BVB.
The capitalization of the Romanian capital market in relation to GDP was of 17.9% at the end of 2019. That same year, the stock exchange indices reached their highest level in the past 10 years. The BET index went up 35% and the BET-TR rose more rapidly, by 47%, against the dividends distributed by the companies.
At 31 December 2019, the most liquid company within the BVB’s main (Regular) market was
Banca Transilvania
Banca Transilvania S.A. (also BT or TLV) is a banking institution with headquarters in Cluj-Napoca, Romania. The bank was founded in 1993 in Cluj-Napoca with a capital of 2 billion RON, of which 79% was Romanian and 21% foreign.
BT is the large ...
(TLV), which owns approximately 30% of the total traded value. The following most liquid companies were
Fondul Proprietatea
Fondul Proprietatea is a joint-stock company established by the Romanian state, and is intended to become entirely private and independent from the state. Its specificity lies in the fact that its purpose and its operations are governed by speci ...
(FP),
BRD - Groupe Société Générale
BRD may refer to:
Places
* Brainerd Lakes Regional Airport (IATA Code BRD), Brainerd, Minnesota, US
* BRD Tower (disambiguation), name for two different office towers in Romania
* Federal Republic of Germany (, since 1990)
** BRD (Germany) (), a ...
(BRD),
Romgaz
Societatea Națională de Gaze Naturale Romgaz SA Mediaș (SNGN Romgaz SA) or simply Romgaz is the largest natural gas producer in Romania and one of the largest producers in Eastern Europe. The company is the country's main supplier and responsib ...
(SNG) and
OMV Petrom (SNP).
In September 2020, the Bucharest Stock Exchange was promoted from the category of Frontier Market to the category of Secondary Emerging Market by the FTSE Russell rating agency.
History
Beginnings of the history of the Bucharest Stock Exchange can be traced back to 1839, when the commodities-trade exchanges were established in Bucharest. It was nevertheless only until December 1, 1882 that the BVB was officially inaugurated. One week later, the first exchange rates begun being published in the Official Gazette.
Throughout its existence, the activities of the Bucharest Stock Exchange were affected by the socio-political events of the time, such as the
Romanian Uprising of 1907 or the
Balkan Wars
The Balkan Wars refers to a series of two conflicts that took place in the Balkan States in 1912 and 1913. In the First Balkan War, the four Balkan States of Greece, Serbia, Montenegro and Bulgaria declared war upon the Ottoman Empire and defe ...
that took place between 1912 and 1913. The stock exchange was moreover closed during the
First World War
World War I (28 July 1914 11 November 1918), often abbreviated as WWI, was one of the deadliest global conflicts in history. Belligerents included much of Europe, the Russian Empire, the United States, and the Ottoman Empire, with fightin ...
. When BVB re-opened following the end of the war, it went through a period of 7 years of significant growth, followed by a period of 7 years of accelerated loss.
The activity of the Market for Effects, Actions and Exchange was stopped in 1948, with the establishment of the
Communist regime
A communist state, also known as a Marxist–Leninist state, is a one-party state that is administered and governed by a communist party guided by Marxism–Leninism. Marxism–Leninism was the state ideology of the Soviet Union, the Cominte ...
in Romania and the beginning of the nationalisation process. At that time, shares issued by 93 companies and 77 fixed-income instruments (bond type) were listed on the Bucharest Stock Exchange.
The Bucharest Stock Exchange reopened again in 1995, after almost 50 years since it was shut down by the Communist regime. The first trading session was carried out on November 20, 1995. On that date, 905 shares issued by 6 listed companies were traded.
In 2005, BVB absorbed RASDAQ – the over-the-counter electronic stock market. On February 14, 2008,
Erste Bank
Erste Group Bank AG (Erste Group) is an Austrian financial service provider in Central and Eastern Europe serving 15.7 million clients in over 2,700 branches in seven countries.
History
Erste Group was founded in October 1819 as ''Erste öster ...
listed on BVB and became the first international company listed on the regulated market.
Subsequently, Bucharest Stock Exchange has experienced a continuous development and is now established as the main stock exchange in Romania. In 2010, Bucharest Stock Exchange listed on its own spot regulated market under the symbol BVB.
In 2010, the
Alternative trading system
Alternative trading system (ATS) is a US and Canadian regulatory term for a non-exchange trading venue that matches buyers and sellers to find counterparties for transactions. Alternative trading systems are typically regulated as broker-dealers r ...
was launched by BVB for SMEs and
start-up companies
A startup or start-up is a company or project undertaken by an entrepreneur to seek, develop, and validate a scalable business model. While entrepreneurship refers to all new businesses, including self-employment and businesses that never intend t ...
wanting to raise capital from the market. At the end of 2014, it was announced that the equities segment of the ATS market will be re-launched under a new name 'AeRO' which stands for Alternative Exchange in Romania. AeRO was officially relaunched on February 25, 2015 during an official opening of the trading session during which two companies debuted - Delivery Solutions (symbol: SDAY) and Carpathia Capital (CRPC). AeRO targets early stage companies, to finance their projects, growth stories, increase their visibility and contribute to the development of the business environment.
On December 15, 2014 BVB has launched a new website, synchronized with all the channels used by BVB, including social media pages. On March 27, 2015, BVB announced that it was joining the
United Nations Sustainable Stock Exchanges initiative making it the 19th stock exchange to join. The Bucharest Stock Exchange is a member of the
Federation of Euro-Asian Stock Exchanges
The Federation of Euro-Asian Stock Exchanges (FEAS) is a non-profit international organization comprising the main stock exchanges in Eastern Europe, the Middle East, and Central Asia. The purpose of the Federation is to contribute to the coopera ...
.
Activities
![Bucharest Stock Exchange - offices](https://upload.wikimedia.org/wikipedia/commons/7/7c/Bucharest_Stock_Exchange_-_offices.jpg)
The Bucharest Stock Exchange is a market and system operator authorized by the Financial Supervisory Authority (FSA) that manages a
Regulated market
A regulated market (RM) or coordinated market is an idealized system where the government or other organizations oversee the market, control the forces of supply and demand, and to some extent regulate the market actions. This can include tasks ...
(RM) and an Alternative Trading System (ATS) compatible with European standards. BVB also operates a market section called RASDAQ. The following types of financial instruments are traded on BVB: shares, rights, bonds, fund units, structured products and futures contracts.
BVB operating revenues are generated mainly from trading activity, from membership and listing fees, as well as from data vending to various users.
Regulated Market
The main market of BVB is a spot regulated market where financial instruments such as shares and rights (issued by international and Romanian entities), debt instruments (corporate, municipality and government bonds) issued by Romanian entities and international corporate bonds, UCITs (shares and fund units), structured products and ETFs are traded.
In order to be listed on the regulated market, a company has to fulfill a number of requirements prior to its listing on BVB:
* Be a
joint stock company
A joint-stock company is a business entity in which shares of the company's stock can be bought and sold by shareholders. Each shareholder owns company stock in proportion, evidenced by their shares (certificates of ownership). Shareholders are ...
(SA)
* Have the value of
market capitalization
Market capitalization, sometimes referred to as market cap, is the total value of a publicly traded company's outstanding common shares owned by stockholders.
Market capitalization is equal to the market price per common share multiplied by t ...
/ shareholders’ equity of at least 1 million euro
* Have a
free-float
In the context of stock markets, the public float or free float represents the portion of shares of a corporation that are in the hands of public investors as opposed to locked-in shares held by promoters, company officers, controlling-interest inv ...
of at least 25% (shares not owned by the company, nor by strategic investors)
* Be active on the market for the last 3 years and have available
financial reports
Financial statements (or financial reports) are formal records of the financial activities and position of a business, person, or other entity.
Relevant financial information is presented in a structured manner and in a form which is easy to un ...
from that period.
AeRO Market
AeRO market is the equities segment of the Alternative trading system (ATS). AeRO market was designed from the need of providing a financing alternative for entrepreneurs, and is the equity segment of the alternative trading system managed by the Bucharest Stock Exchange (BVB). It is a market segment designed for listing of early stage companies, start-ups and SMEs, to finance their projects, growth stories, increase their visibility and contribute to the development of the business environment. Based on the BVB alternative trading system existing since 2010, the AeRO market, under its redesigned and reconstructed concept, was launched on February 25, 2015.
Key features of AeRO market:
*It addresses all types of companies, regardless of their size or time since establishment,
*It was created for both shares and bonds, as well as for other financial instruments that do not comply with the requirements of the regulated market,
*The listing features are simplified, as there is no need for a prospectus to be admitted to trading, but only for a corporate presentation,
*The reporting requirements are low as compared to the regulated market,
*A company may prepare to get transferred on the regulated market by gradually increasing the free float, the cash.
Indices
Bucharest Stock Exchange has 8 local indices and one international:
indices:
BET
BET was the first index developed by BVB. It is the reference index for the capital markets. BET follows the evolution of the 15 most liquid companies listed on BVB regulated market, excluding financial investment companies (SIFs). It is an index weighted by free float capitalization. The maximum weight of the symbol is 20%. The main selection criterion is company’s liquidity. Starting with 2015, additional requirements of transparency, quality reporting and communication with investors was imposed.
BET index structure:
Updated 13 November, 2018
BET-TR
BET-TR is the first total return index launched by BVB. It is based on the structure of market reference index BET. BET-TR reflects the evolution of its component shares and dividend yields offered by them. Index is composed of the 13 most traded companies on BVB, excluding SIFs. Similarly to BET, the main selection criterion for BET-TR is the liquidity of the company. Starting with 2015, additional requirement of transparency, quality reporting and communication with investors will be imposed. BET-TR is an index weighted by free float capitalization. The maximum weight of the symbol is 20%.
BET-FI
BET-FI is the first sectoral index launched by BVB. It reflects the evolution of financial investment companies (SIFs) and of other similar institutions. It is an index weighted by free float capitalization. The maximum weight of the symbol is 30%.
BET-XT
BET-XT reflects the price evolution of 25 most liquid companies listed on BVB, including investment firms (SIFs). It is an index weighted by free float capitalization. The maximum weight of the symbol is 15%.
BET-NG
BET-NG is a sectoral index that reflects the evolution of companies listed on BVB regulated market that operate primarily in energy and utilities field. It is an index weighted by free float capitalization. The maximum weight of the symbol is 30%. Number of component shares is variable.
BET-BK
Index BET-BK was created as a benchmark for the fund managers and other institutional investors. The calculation methodology reflects on legal requirements as well as limits of the investment funds. It is an index weighted by free float capitalization. Number of component shares is equal 25.
BET Plus
BET Plus reflects the evolution of Romanian companies listed on BVB regulated market that meet the minimum selection criterion with regards to liquidity and free float. Financial investment companies are excluded from this index. It is an index weighted by free float capitalization. The maximum weight of the symbol is 20%. Number of component shares is variable.
BET-XT-TR
BET-XT-TR is the total return version of BET-XT index, which includes the 25 most traded Romanian companies listed at BVB. BET-XT-TR tracks the price changes of its constituent companies and is adjusted to also reflect the dividends paid by them.
ROTX
ROTX is an index developed by BVB together with the Vienna Stock Exchange (
Wiener Börse
The Wiener Börse AG (also known as the Vienna Stock Exchange) is a bourse situated in Vienna, Austria. The exchange also owns and operates the Prague Stock Exchange, provides market infrastructure to other exchanges in Central, Eastern, and ...
). It reflects, in real-time, the movement of the ‘blue chip’ shares traded on the Bucharest Stock Exchange. ROTX is an index weighted by free float capitalization, calculated in RON, EUR and USD and disseminated in real time by the Vienna Stock Exchange. ROTX is a tradable index and can be used as an underlying for derivatives and structured products.
Companies Listed
Some of Romania’s highest-profile companies are being traded on BVB. The largest companies by market capitalization as of November 2017 are: OMV Petrom S.A., S.N.G.N. Romgaz S.A., Banca Transilvania, BRD – Groupe Societe Generale S.A, Fondul Proprietatea, S.N.T.G.N. Transgaz S.A. and Societatea Energetica Electrica S.A.
BVB own shares
![Shareholder structure BVB](https://upload.wikimedia.org/wikipedia/commons/8/88/Shareholder_structure_BVB.PNG)
Since 2010, Bucharest Stock Exchange is listed on its own market, with a symbol BVB. Bucharest Stock Exchange has a single class of common shares and a capital of 76,741,980 lei divided in 7,674,198 shares with a nominal value of RON 10 per share. All the shares are fully paid. The free float of BVB shares is equal 100%. In accordance with the provisions of the Government Emergency Ordinance no. 90/2014 amending and supplementing the Law no. 297/2004 regarding the capital market, a shareholder of a market operator cannot own directly or indirectly more than 20% of the total voting rights. As of November 30, 2014, the Romanian legal entities constituted the largest group of the BVB shareholders (69.19%), followed by foreign legal entities (15.47%), Romanian private individuals (14.79%), and foreign private individuals (0.54%). In November 2014,
European Bank for Reconstruction and Development
The European Bank for Reconstruction and Development (EBRD) is an international financial institution founded in 1991. As a multilateral developmental investment bank, the EBRD uses investment as a tool to build market economies. Initially focus ...
has acquired 4.99% stake in the Bucharest Stock Exchange.
Legal Framework
The legal framework for exchange operations in Romania is provided by the following legal acts:
*The Capital Market Law no. 297/2004
*CNVM Regulation no. 1/2006 on Issuers and Operations with Securities
*CNVM Regulation no. 2/2006 on Regulated Markets and Alternative Trading System
Additionally, the BVB is governed by Constitutive Act of the Commercial Company Bursa de Valori Bucuresti S.A. and the Regulation on the Organization and Functioning of the Bursa de Valori Bucuresti whereas the respective markets are governed by the Bucharest Stock Exchange Rulebook for Market Operators and ATS Rulebook for System Operators.
Information services
BVB supplies its participant with a wide range of tools that provide real time prices and trading data. Some of the most popular products provided by BVB are:
*ArenaXT – provides investors with access to the live market data that professional traders rely on. It offers investors real-time, in-depth market information, delivered in a cost-effective and user-friendly way.
*ON LINE Terminal – provides online trading information based on best prices.
*ON LINE Quotes – provides online trading information per symbol.
Currently BVB provides real time data to, inter alia:
Thomson Reuters
Thomson Reuters Corporation ( ) is a Canadian multinational media conglomerate. The company was founded in Toronto, Ontario, Canada, where it is headquartered at the Bay Adelaide Centre.
Thomson Reuters was created by the Thomson Corpora ...
,
Bloomberg L.P.
Bloomberg L.P. is a privately held financial, software, data, and media company headquartered in Midtown Manhattan, New York City. It was co-founded by Michael Bloomberg in 1981, with Thomas Secunda, Duncan MacMillan (Bloomberg), Duncan MacMi ...
,
Standard & Poor’s
S&P Global Ratings (previously Standard & Poor's and informally known as S&P) is an American credit rating agency (CRA) and a division of S&P Global that publishes financial research and analysis on stocks, bonds, and commodities. S&P is consi ...
and many others.
Opening times
Bucharest Stock Exchange trades daily from Monday to Friday. The hours differ depending on the market and the instrument type.
The regulated market (REGS) has pre-market sessions from 9:30 – 9:45 AM
Eastern European Time
Eastern European Time (EET) is one of the names of UTC+02:00 time zone, 2 hours ahead of Coordinated Universal Time. The zone uses daylight saving time, so that it uses UTC+03:00 during the summer.
A number of African countries use UTC+0 ...
(EET), normal trading sessions from 9:45 - 17:55, pre-close session from 17:55 – 18:00, trading at last session from 18:00 until 18:10 PM and closed session at 18:10 PM.
The Stock Exchange does not trade on Saturdays and Sundays as well as
Romanian national holiday days, declared by BVB in advance.
See also
*
BET-13
*
Economy of Romania
An economy is an area of the production, distribution and trade, as well as consumption of goods and services. In general, it is defined as a social domain that emphasize the practices, discourses, and material expressions associated with the ...
*
Foreign trade of Romania
*
List of companies of Romania
Romania is a sovereign state located in Southeastern Europe. Following rapid economic growth in the early 2000s, Romania has an economy predominantly based on services, and is a producer and net exporter of machines and electric energy, featuring ...
*
List of stock exchanges
This is a list of major stock exchanges. Those futures exchanges that also offer trading in securities besides trading in futures contracts are listed both here and in the list of futures exchanges.
There are sixteen stock exchanges in the world ...
References
External links
Bucharest Stock Exchange
{{coord, 44.43661, 26.10950, display=title, type:landmark_region:RO
1882 establishments in Romania
Stock Exchange
A stock exchange, securities exchange, or bourse is an exchange where stockbrokers and traders can buy and sell securities, such as shares of stock, bonds and other financial instruments. Stock exchanges may also provide facilities for th ...
Stock Exchange
A stock exchange, securities exchange, or bourse is an exchange where stockbrokers and traders can buy and sell securities, such as shares of stock, bonds and other financial instruments. Stock exchanges may also provide facilities for th ...
Stock exchanges in Europe
Economy of Romania