Financial Supervisory Authority

09/22/2020 | Press release | Distributed by Public on 09/21/2020 23:41

The message of the President of ASF, Mr. Nicu Marcu, on the occasion of the effective promotion of the Romanian capital market to the status of emerging market

Bucharest, September 21st, 2020 - The President of the Financial Supervisory Authority, Mr. Nicu Marcu, participated, today, in the 'Emerging Romania' event, organized by the Bucharest Stock Exchange (Ro. BVB), on the occasion of the effective promotion of the Romanian capital market to the status of Emerging Secondary Market.

Please find below the message of Mr. Nicu Marcu, President of the Financial Supervisory Authority, an institution that has significantly contributed to achieving this historic goal, sent on this occasion:

'First of all, I welcome the winning of the status of emerging market by the Romanian Stock Exchange, a well-deserved recognition of the role and potential that BVB has. We are here to mark not only this recognition, but especially the moment when new, concrete perspectives open for the development of the Romanian economy.

The capital market as a whole, but especially the stock market component, are extremely important for the stability of the non-banking financial market, due to the fact that most entities operating in the other components of this market have investments in traded instruments. Along with the Bucharest Stock Exchange, the Central Depository (Ro. Depozitarul Central) is the most important infrastructure institution of the local capital market.

The capital market must become an engine of the economy that provides a financing source for the companies, as well as a place of investment for the insurance companies, respectively for pension funds, which can lead directly and indirectly to Romania's economic growth.

But the capital market is an area where the level and intensity of financial flows matter a lot and that is why I am now referring to the positioning of BVB in the South - Eastern European region.

What do we see at the moment?

More stock exchanges and investment firms want their business to grow (some are even struggling !!!), more issuers would like financing to exploit development opportunities and a few investors eager to build a suitable portfolio.

Individual values ​​matter a lot and are remarkable only if they are valued in an integrated construction compatible with the best international practices. Basically, we need to think about building large-scale 'financial aggregates'. Stock exchanges in the region should, on the one hand, build an instrument to provide large-scale issuers in the region an effective source of financing and, on the other hand, confer international investors an investment convenience appropriate to their expectations.

All institutional actors (intermediaries, stock exchanges and authorities) should realize that we will not be able to perform on our own, and BVB and Romania, both in terms of geographical position and economic dimension, should initiate or join any strategic initiative of creating an aggregate market.

The Bucharest Stock Exchange must become a strategic regional hub for the other financial markets in the South-Eastern European space. By achieving this goal, the Bucharest Stock Exchange will be able to participate in the development of the economy at its true capacity. But this requires more liquidity, and this can be achieved by providing quality assets and greater security to market participants. All these can be obtained through a more active involvement of the Romanian state in the development of this financial sector'.

Once with the decision of FTSE Russell to classify BVB in the category of emerging markets, the Financial Supervisory Authority considers that the fundamental objective of the strategic project STEAM (Set of actions Towards Establishing and Acknowledgment of the emerging Market status) has been achieved. This project was started by ASF in August 2014 and took into consideration the implementation of measures to facilitate the reclassification of the Romanian capital market, from border market to emerging market.

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About the Financial Supervisory Authority

The Financial Supervisory Authority is the national authority set up in 2013 by EGO no. 93/2012, approved by Law no. 113/2013, for the regulation and supervision of insurance markets, private pensions, as well as the capital market. ASF contributes to strengthening the integrated operating framework of the three sectors, which totals more than 10 million participants. More information can be found on www.asfromania.ro.