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February 4, 2023

Bucharest Stock Exchange (BVB): Arena – Automated Exchange Platform

Bucharest Stock Exchange informs the market participants that the number of quotations allocated to the market-makers and to the liquidity providers trading on BVB’s market will be doubled, to facilitate their trading activity and the listing of the new quoting-intensive instruments.
The increasing processing capacity of Arena – Automated Exchange Platform with 100% is one of the advantages brought to the market by the systems’ separation project implementation, together with the following:
decreasing the order instruction total round-trip time with 50%;
a new flexible transactions’ allocations process in the post-trading phase of the market;
increasing the trading efficiency (grouped trades execution, change in the user’s behaviour – focusing the trader’s activity on best execution on trading, not on operational details);
_ a better risk management by using the segregated accounts of trading and settlement, and a clearer separation of the participants’ activity at the front/back office level.
The separation of trading and post-trading platforms, both of them using the Arena – BVB’s technology, and providing complementary services to the market, comes with additional advantages to BVB and the Central Depository (CSD), such as:
reducing the total cost of ownership for operations with the new version of Arena; combining the new reduced platform’s operating cost with the increased processing capacity, the resulted cost per system instruction will be reduced substantially;
additional freedom degree for operations management for the Arena trading and settlement systems’ end-users, due the fact that in the separated environment, the operational interdependency between trading and post-trading level is lower.
For BVB, as the software solution developer of the electronic platforms, both for trading, as well as for the CSD settlement system, another important advantage of the separation will be materialized in the speed of development and implementation of new features and market mechanisms, being simpler and more effective the separated and parallelized development of new functions for trading and post-trading, rather than in an integrated environment.
Ludwik Sobolewski, BVB’s CEO, stated:
“From this point of view, the first results will be seen soon, BVB currently preparing a package of new functions of the Arena platform that envisages the improvement of the market accessibility, implementation of new order types, improvement of the trading mechanisms, as well as an extension of the Arena Post-Trading platform, developed by BVB for Central Depository, with new functions for settlement optimization and risk management”.

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