BRK Financial Group becomes one of the listed companies that benefits from the Issuer Market Maker program

8/24/2021

  • BRK Financial Group, the broker listed on BVB’s Main Market that supports the liquidity for 12 financial instruments, will benefit as an issuer from the Issuer’s Market Maker program.
  • WOOD & Company will support the liquidity for BRK Financial Group shares by starting the Issuer’s Market Maker activity on August 25th.

 

BRK Financial Group (BRK), a brokerage company based in Cluj-Napoca and the first, and up until now, the only financial investment company listed on the Bucharest Stock Exchange (BVB), will benefit starting with August 25th, from the Issuer’s Market Maker services provided by WOOD & Company, a leading investment bank in Emerging Europe. BRK Financial Group is also one of the most active brokers in terms of supporting the liquidity for BVB listed companies, being itself a Market Maker for 12 financial instruments.

‘We are pleased that the Issuer Market Maker program brings together two of the most relevant companies for the local capital market, WOOD & Company and BRK Financial Group. With this new partnership, the program includes a total of 16 financial instruments, 15 shares and one bond issue, and we expect their number to continue to grow, with a positive impact on the market liquidity’, said Adrian Tanase, Bucharest Stock Exchange CEO.

‘The decision to use the market-making service is a natural step in BRK's strategy to create value for our shareholders, our focus being on delivering solid financial results and aligning with best practices in investor relations. Following some internal research, we found that our shares have a very good daily liquidity: in terms of capitalization, BRK has the highest turnover/market capitalization ratio. At the same time, the volatility of BRK shares is above the market average, most likely due to the depth, sometimes deficient, of the market. With this partnership, we aim to improve the founded shortcomings, being already a fact that the existence of a market maker reduces volatility, and therefore the risk, and provides a solid counterpart to investors. As a medium-term objective, we want the mix between capitalization and liquidity to propel BRK shares into the BET index’, said Monica Ivan, BRK Financial Group CEO.

The Issuer's Market Maker (IMM) activity will be performed by WOOD & Company based on a contract signed with BRK Financial Group. BRK Financial Group is the third issuer listed on the BVB’s Main Market for whom WOOD & Company supports liquidity within the Issuer's Market Maker, after Electrica and OMV Petrom.

WOOD & Company is excited to become Issuer Market Maker for BRK shares. We are sure that this step will help increase the overall attractiveness of the BRK shares, making it even more liquid and less volatile for all market participants’, said Josef Kohout, Head of Trading Prague WOOD & Company.

BRK Financial Group was established as a joint-stock company on October 26th,1994, BRK shares being traded on BVB’s Main Market since February 2005. The specific parameters applicable to the IMM activity provided by Wood&Company for BRK shares are available HERE.

The IMM is the participant in the BVB’s trading system that has taken on the role of sustaining the liquidity of a financial instrument, based on a contract concluded with the issuer of the financial instruments, as well as with BVB. Further information regarding the general framework for the IMM Program can be found HERE.

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WOOD & Company is the leading investment bank in Emerging Europe. Founded in 1991 and head-quartered in Prague. With offices on the ground in the region, and in key financial hubs such as London and Milano, we are never far from our clients and we remain at the forefront of what’s afoot in the CEE emerging and frontier landscape.