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April 12, 2021

Stock Exchange CEO Ludwik Sobolewski: Derivatives market might be launched by end-2018

The Bucharest Stock Exchange (BVB) might launch the derivatives market by the end of next year, BVB CEO Ludwik Sobolewski told AGERPRES.

The biggest change will be the launch of the derivatives market. It will be good if we have this market in place by the end of next year, Sobolewski said.

He said that other products to add in time to BVB’s range of instruments are related to warrants.

I think the greatest change will be when we start trading futures contracts, because I think this will be the first instrument on the derivatives market and we are now working on this project, said the BVB official.

The total value of BVB trades this July was up 22 percent from the previous month and 186 percent higher YoY, having hit 1.3 billion lei (280 million euro), informs a report on the BVB website.

The segment of fixed income instruments (bonds) recorded a strong advance as a result of the bond issue offerings carried out by UniCredit Bank (610 million lei, or 134 million euro). The bond segment accounted for almost half of the total value of trades performed on the local capital market.

The dividend season was followed by the bond season and other bond issues will be next, which shows that investors increasingly trust the Romanian economy and capital market. A developed capital market cannot exist without a market for lending instruments like bonds. If investors buy bonds, this means they understand and accept the local risks in their entirety, as reflected in bond interests, said BVB CEO Ludwik Sobolewski.

In his turn, BVB president Lucian Anghel remarked that the recent bond deals are “a positive message Romania sends to investors, specifically that the Bucharest market has the capability and necessary tools to absorb significant transactions, whether they involve issues or sales of stock or bonds.”


Bucharest Stock Exchange, Sibex merger due in the coming weeks


The merger of the Bucharest Stock Exchange (BVB) and Sibex – Sibiu Stock Exchange should be completed in the coming weeks, as the final decisions of the Financial Supervisory Authority (ASF) are being awaited for, BVB CEO Ludwik Sobolewski also told AGERPRES.

The merger should happen in the coming weeks. We are now waiting for the final ASF decisions, Sobolewski said.

He went on to say that the Romanian capital market has been undervalued for many years and now has a chance to be upgraded.

The Romanian capital market has been undervalued for many years. It has also been classified as a frontier market that now has a chance to be upgraded. A change is beginning to show. Last year we were placed on the watchlist to become an emerging market, therefore we see a higher interest of local and international investors. Romania’s situation is very specific in a very good sense, the BVB CEO said.

On May 31 the Bucharest Stock Exchange announced that it was increasing its share capital by 3.7 million lei for the merger with Sibex.

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