Press releases

The real estate leasing and sub-lease company Ready Office Rent took the first step on the Bucharest Stock Exchange (BVB), where it listed, on Tuesday, October 13th, a bond issue worth almost RON 5.2mn, on the Multilateral Trading System (MTS). This is the first corporate bonds issue listed on Bucharest Stock Exchange after the Romanian capital market upgrade to the Secondary Emerging Market status by the global index provider FTSE Russell.

“If we look at the sectors from which the companies came to BVB in the last two years, we can say that the Stock Exchange is for any company, regardless of the field of activity, size and shareholding structure. All companies that came to the capital market to attract financing and convinced the investors with their development plans have successfully completed the financing rounds. Only in the last two years, we have witnessed about 30 financing rounds through bond issues, with a cumulative value of over 1.5 billion euros. The size of the funding rounds started at 200,000 euros and even reached hundreds of millions of euros. All this proves that the Stock Exchange is for any company determined to develop", stated Radu Hanga, Bucharest Stock Exchange’s Chairman of the Board of Governors.

• The immediate effect generated by the approach of the historic moment when Romania was promoted to the status of Emerging Market, starting from September 21st, was strongly visible on the Bucharest Stock Exchange (BVB).
• The contribution of two Romanian listed companies, Banca Transilvania (TLV) and Nuclearelectrica (SNN), was decisive for the reclassification of the entire market to a higher status, following their inclusion in the FTSE All-Cap indices for Emerging Markets.
• The total trading value in the equity segment of the BVB-listed companies exceeded half a billion euros in September this year, up by over 260% both compared to August 2020 or September last year, when FTSE Russell published the decision regarding the promotion of Romania.
• The average daily liquidity increased by 3.5 times in September compared to August 2020 or September 2019 and exceeded 25 million euros.
• Radu Hanga, BVB President:
  • The figures strongly strengthened the special significance regarding the promotion of Romania to a new status. At the same time, we need to be brutally honest: this is the immediate, visible effect but it is essential to have realistic expectations and to take into account the domestic and the international context we live in.
  • In an ever-changing world, the stock market is positioned as an essential benchmark and pillar of financing the economy. This year, Romanian companies have shown, more than ever, that they have the ability and determination to adapt their business model, and we have demonstrated, through the stock market, that we can facilitate their access to the vital capital they need to operate as the pandemic rages on.
• Adrian Tanase, BVB CEO:
  • The promotion of Romania is a continuous process, not only a mere stage. It is the fundamental element that Romanian investors should take into account. Our priority is to consolidate the status we have just gained by increasing the number of companies included in the Emerging Markets indices.
  • Our ambition is to announce after the next assessments that we have several Romanian companies that will be part of this investment universe, and we are in talks with their representatives to implement the best solutions for these inclusions to become reality.

The shares of the agribusiness company Holde Agri Invest (HAI) started to trade on Bucharest Stock Exchange (BVB) Multilateral Trading System (SMT), also known as the AeRO market, on October 1^st, the event being marked by the company through the official opening of the trading session at BVB headquarters. Holde Agri Invest is the first company to be listed on BVB after the Romanian capital market upgrade to the Secondary Emerging Market status by the global index provider FTSE Russell.

Electrica (EL), key player in the electricity distribution and supply market in Romania, as well as one of the most important players in the energy services sector, will benefit as of September 30, 2020, from the issuer’s market-making services provided by WOOD & Company Financial Services, leading investment bank in Emerging Europe.

• It’s a historic moment for the Romanian capital market, which is included in the Emerging Markets indices of the global index provider FTSE Russell, starting from September 21^st, 2020. It’s been 25 years since the reopening of the Romanian stock exchange and now Romania is welcomed in an unprecedented investment universe: new investment funds that manage billions of euros will be able to invest in the companies listed on the Bucharest Stock Exchange (BVB), a move that was previously impossible due to the restrictions generated by the country’s former Frontier Market status.
• Two Romanian companies, Banca Transilvania (TLV) – the most traded company from BVB – and Nuclearelectrica (SNN) – a BVB-listed company in which the Romanian state is the majority shareholder – have met the necessary criteria to be included, as of September 21^st, in the Emerging Markets indices representative for the upgrade of Romania.
• Consolidating the Emerging Market status by increasing the number of Romanian companies included in these indices is one of the main objectives of the Bucharest Stock Exchange. The increase of Romania's representativeness in the Emerging universe will contribute to attracting substantial funds in the companies listed on the stock exchange and, implicitly, in the Romanian economy.

• Romania’s inclusion in the Emerging Market indices, as of September 21^st, 2020, by the global index provider FTSE Russell is a historic moment for the local stock exchange, reverberating strong echoes in the political, institutional, and business environments.

• The initiative aims to promote responsible investing and highlight the importance of ESG standards among local capital market participants
• Adrian Tanase, CEO, BVB: We consider this project as an important pillar in our plans to develop the local capital markets infrastructure. We aim to implement the best international standards by working with Sustainalytics, a leading global provider of ESG research, ratings and data.
• Simon MacMahon, Executive Vice President, Sustainalytics: Sustainalytics is delighted to be working with BVB to bring this information to Romanian market participants. Access to high-level ESG insights will provide investors with greater transparency into how companies are addressing these critical issues and this initiative will additionally raise further awareness of responsible investing.

• The total value of the financial instruments in the equity and fixed income segments listed on the Bucharest Stock Exchange in the first 8 months of the year amounted to around 533 million in EUR-equivalent.
• In total, 8 issuers, including the Romanian state represented by the Ministry of Public Finance, have successfully managed to attract financing through the issues of financial instruments listed on the Romanian stock market since the beginning of the year.
• Radu Hanga, BVB President:
  • It is a strong signal, even amid this pandemic, that accessing multiple sources of financing, including the capital market, is part of a healthy mix for any economic activity. Both private companies and the Romanian state have successfully managed to attract such vital capital through the Bucharest Stock Exchange in order to keep the economy moving.
  • The investment universe is expanding rapidly for the investors who are active on the Romanian stock exchange, and has grown by over half a billion euros just taking into account the listings of shares and bonds in the first eight months. The stock market is constantly expanding and we have received encouraging signals from authorized intermediaries that more issuers are getting ready to access the capital market.
• Adrian Tanase, BVB CEO:
  • The success of the Romanian stock market is represented by this mix given by the presence of large issuers, whether privately-owned or state-owned, but also by those in the SME segment, as well as by the appetite of Romanian investors who access more and more frequently the instruments available on the capital market, looking for superior returns for their savings.
  • The stock market must be a representation of the economy, a representation where equity and bonds are the basic financial instruments. We want to offer investors, existing or potential, the opportunity to access the capital market according to their risk profile so that they can implement their various investment strategies.

OMV Petrom (SNP), the largest energy company in South-Eastern Europe, will benefit as of September 3^rd from the issuer’s market-making services provided by WOOD & Company Financial Services, leading investment bank in Emerging Europe.

"We are delighted to see two very important companies such as OMV Petrom and WOOD & Company Financial Services joining forces to increase the liquidity of the shares of the largest Romanian company and, at the same time, a champion in the energy field in South-Eastern Europe. OMV Petrom shares are already one of the most liquid on BVB, but an improved liquidity could increase its chances of being included in the FTSE Russell indices for Emerging Markets", stated Radu Hanga, Chairman of the Board, Bucharest Stock Exchange.

• Libra Internet Bank attracted almost EUR 4.3mn through a 10-year bond issue denominated in EUR from capital market investors.

• The bonds will be traded on BVB's Multilateral Trading System starting with September 3^rd.

Libra Internet Bank attracted EUR 4.29mn, through a private placement for subordinated bonds, unsecured and denominated in EUR, and conducted on the capital market between March 17th and 23rd, 2020. Thus, Libra Internet Bank took the first step on the Romanian capital market and the bonds started trading on Thursday, September 3rd, on Bucharest Stock Exchange (BVB) Multilateral Trading System (MTS).

Romcarbon SA Buzau (ROCE) will benefit as of September 1st from the issuer’s market-making services provided by SSIF BRK Financial Group (BRK), one of the most active brokerage companies trading on the Bucharest Stock Exchange (BVB) and Issuer’s Market Maker (IMM) for other three BVB listed companies.

"We wish to have as many companies as possible to benefit from such programs that the capital market offers. We all want as higher market liquidity as possible, because liquidity and the number of investors are two vital components of any market. We were glad to hear that Romcarbon decided to access the Issuer's Market Maker service, especially since it was one of the first companies listed on BVB, in 1997, and this proves that the management is focused not only on the company's operational activity, but also on investors, because they have a very important role in the life of any listed company", stated Radu Hanga, Chairman of the Board, Bucharest Stock Exchange.

• The total trading value for all the financial instruments traded on the Bucharest Stock Exchange (BVB) in the first 7 months of the year accounted for RON 6.67 billion, or EUR 1.38 billion, up 5% from the same period last year.
• Radu Hanga, BVB President:
  • The new packages of fiscal stimuli, together with the perspective of improving the public health status at international level, can significantly influence the evolution of the capital markets. Regarding what we can influence locally in the capital market, we have received signals from the investment community that more and more Romanians are closer to the stock market and have become investors.
  • The opening of online accounts, for which we awarded at the July ceremony the brokers who had this system implemented, is a facility that the Romanian public needed all the more in this context. Digitization is the strategic pillar of the stock market development and has been extremely well highlighted by the current situation: online is becoming the "new normal" in the capital market.

• Adrian Tanase, BVB CEO:
  • Local investors are waiting for the end of the financial reporting season in order to have a clear picture of the evolution of listed companies, and the data for the second quarter are relevant for a better perspective on the impact of the pandemic on businesses. It is important to have confidence in the Romanian companies and in their ability to manage risks and identify opportunities in the current context.
  • Also in July, we made an important step regarding the Central Counterparty, a benchmark project with benefits for the entire financial community in Romania, and signed the contract through which specific services for the CCP activity would be provided by CC&G, part of the London Stock Exchange Group.

• Romania’s Ministry of Public Finance attracted RON 1.22bn. and EUR 168.4mn. through three issues of government bonds for the population (FIDELIS) carried out on the capital market.
• A premiere is the issue denominated in EUR: it is the first issue of government bonds denominated in the European currency launched by Romania’s Ministry of Public Finance for the population. The other two issues of government bonds, issued in the local currency, represent the first issues for the population listed in the last four years on Bucharest Stock Exchange.
• The government bonds can be traded on BVB as of Thursday, August 13^th, in a transparent environment, through authorized intermediaries.

The Ministry of Public Finance (MFP) attracted RON 1.22bn and EUR 168.4mn. (in a total amount of RON 2.04bn – EUR 422mn), through the primary offer for the sale of government bonds for the population (FIDELIS), which took place between July 15^th and August 7^th, through the Bucharest Stock Exchange (BVB) systems.

• CC&G, part of LSEG, will provide CCP.RO BUCHAREST S.A. of the Bucharest Stock Exchange Group with CC&G’s Clearing and Risk Management solution
• CC&G provides technology and expertise to CCP.RO BUCHAREST S.A., enabling centralised clearing services for Romania’s capital and energy markets
• Agreement demonstrates CC&G increased international reach and its ability to provide innovative services to other CCPs

Cassa di Compensazione e Garanzia (CC&G), a leading provider of post trade services, and part of London Stock Exchange Group (LSEG), today announces it has entered into an agreement to provide CCP.RO BUCHAREST S.A., part of Bucharest Stock Exchange (BVB) Group, with consultancy and technological support to clearing and risk management services that will be managed by CCP.RO BUCHAREST S.A. for all asset classes traded in the Romanian market. CCP RO BUCHAREST S.A. is establishing a central counterparty clearinghouse (CCP) for Romanian markets.

• Bucharest Stock Exchange (BVB) has given out 15 awards for the results achieved during the 2019 stock exchange year to the top performing listed companies, brokerage companies, private pensions or investment funds.
   
• Radu Hanga, BVB President: Just as the current crisis has highlighted the importance of the Romanian companies, we must also recognize the importance of the performance obtained by listed companies, brokers, and investors. The Bucharest Stock Exchange is an essential pillar for financing the development of companies and, implicitly, of the local economy.
   
• Adrian Tanase, BVB CEO: The BVB Awards are a recognition of the main achievements of those involved in the capital market, and it is normal to recognize the most important achievements that strengthen our capital market. The year 2019 was an exceptional one for the Romanian stock market, after it posted a growth rate of 47% for the BET-TR index, which also includes the dividends, and after having received the announcement of its upcoming promotion to the Secondary Emerging Market status from FTSE Russell.

Bucharest Stock Exchange (BVB) has organized the award ceremony for the performances obtained in 2019 by the stakeholders involved in the capital market. In total, 15 awards were given, and the list of awards included listed companies, brokerage firms, private pension funds or investment funds that achieved outstanding results during the previous trading year.

• The effects of the coronavirus pandemic on European stock exchanges: all but two main indices of the EU stock exchanges go into the red in the first half of the year. Romania ranks 9th within the EU considering the evolution of the main indices at the end of the first semester.
• The average daily value, and the total trading value for the BVB-listed equities both are up by 5% in the first half of the year.
• Radu Hanga, BVB President: Stock markets have benefited from the prompt and unprecedented liquidity injections announced by central banks due to the exceptional situation created by the coronavirus pandemic. The international consensus at the government level to support economic activity has been another fulcrum for stock markets, and the results can already be seen in our market as well. The rapid U-turn of capital markets shows that investors remain cautious-optimistic about the prospects for revitalizing the economy, both globally and locally.
• Adrian Tanase, BVB CEO: It has become obvious that we have a more agile and a better prepared stock exchange to navigate periods of uncertainty, and we should have more confidence in Romania's ability and in the markets, in general, to cope with crisis situations. There are Romanian companies, either state-owned or privately-held, that offer real opportunities for diversification both at sectoral and regional level, and that is why Romania is on the radar of investors who are interested in capitalizing on this potential. In capital markets, the existing uncertainty translates into volatility, and volatility brings opportunities. For companies, these opportunities mean the possibility of financing at costs that can only be minimized through the stock exchange. For individuals, it means the possibility of financing directly the Romanian companies and thus investing their savings in securities that can bring higher returns in the long term.

Bucharest Stock Exchange (BVB) becomes a Benchmark Indices Administrator, following its registration in this quality by the Financial Supervisory Authority (ASF), in accordance with the new European Benchmarks Regulation (BMR). This new license is a reflection of the high standards, quality and integrity applied by BVB in the development and calculation of benchmark indices.

"The license granted by ASF to the Bucharest Stock Exchange as Benchmark Indices Administrator for the Romanian capital market is a recognition of BVB as a center of competence for these indices, given that they already comply with European regulatory standards. It is the result of a strong pre-existing governance and the work of all members of the BVB Index Commission, specialists with a strong investment background. At the same time, this recognition is a commitment for BVB to continue applying high standards in the management of indices, so as to offer to our users quality, reliable and investible indices", said Adrian Tanase, CEO of Bucharest Stock Exchange.

"The European reference regulation is the most important legislative reference for the indices industry and is a global standard of excellence in the provision of these services. Benchmark indices are a vital component of the investment ecosystem, as they are a benchmark in the independent evaluation of the performance of investment managers. At the same time, the indices are the basis for creating marketable investment products that offer investors access to a wide and diversified range of investment opportunities and strategies", said Radu Hanga, BVB’s Chairman of the Board.

• The total trading value for equities and other financial instruments listed on the Bucharest Stock Exchange (BVB) topped EUR 1.1 billion after the first five months, up by 19.6%.
• Liquidity as measured by the average daily trading value went past the EUR 10-million ceiling for the January-May timeframe, a 17.9% increase over the same period last year.
• Radu Hanga, BVB President:
  • The current crisis has highlighted the importance of Romanian companies, and the Bucharest Stock Exchange is an essential pillar for financing their development and the local economy implicitly. Investors’ trading activity on the Bucharest Stock Exchange has intensified during this period. The situation generated by COVID-19 created better liquidity in the market, and the stock market benefited from this volatility.
  • The digitization of the stock market has become more necessary than ever, an aspect highlighted even more by the current context. Improving retail market access, and moving from a paper-based to a digital economy is one of our major goals as we want to accelerate the process of digitizing the local capital market.
• Adrian Tanase, BVB CEO:
  • Investors took a calm approach to the current situation as compared to what had happened in the market in 2008-2009, and the degree of sophistication of local investors, both institutional and individual, increased significantly. We have noticed divergent evolutions during this period for the listed companies, which tells us that we have a maturing local community of investors, who know how to judge the specific context of each listed company, as the context can be different from one company to another, even under the current conditions generated by the COVID-19 pandemic. In any case, recurring investments even in periods of volatility such as the one we are undergoing should be part of the strategy of any investor who intends to be in the market over a longer period of time.
  • In the medium and long term, at BVB we follow the plans for capitalizing on the potential of the stock market through all the projects we have. The main project is the Central Counterparty, through which we will bring new instruments to the stock market, especially derivatives.

• The legislative initiative that bans for 2 years the listing of state-owned companies restricts the state's ability to use capital markets to finance expenditures and investments.
• Bucharest Stock Exchange (BVB) is an essential pillar for accessing capital for the development of Romanian companies as well as of the local economy.
• BVB considers that the state must be a partner to encourage the presence of Romanian companies on the local stock market, and to stimulate the population's access to the capital market through fiscal measures, which will contribute to increasing the well-being of Romanians in the long run.

Bucharest Stock Exchange (BVB) notes with regret the approval by the Parliament of the legislative initiative on some measures to protect national interests in economic activity. BVB considers that such a legislative initiative does not bring benefits to the Romanian state but, on the contrary, restricts its ability to make optimal use of capital markets to finance expenditures and investments, while also delays the process of modernizing and streamlining the state's holding portfolio.

Since the adoption by the Senate of the mentioned legislative initiative, BVB has sent its point of views to political parties, to the members of the specialized commissions of the Chamber of Deputies, to the Government and the Presidency, and backed up these points of view with examples of state-owned companies listed on the local stock exchange.

• Bittnet market capitalization rose by 23 times, in the 5 years on AeRO
• The company carried out multiple financing rounds on the market, with a total value of RON 57mn

Bittnet (BNET) shares will start trading on BVB’s Regulated Market on June 3rd, five years after the listing on the AeRO market of the Multilateral Trading System (MTS) of the Bucharest Stock Exchange (BVB). Bittnet thus becomes the first IT issuer present on BVB's Main Market.

“Bittnet is an example to be followed by most companies in Romania, it is a story of accelerated growth on the stock market, that accessed all the development support mechanisms offered by the stock market. We are talking about capital increases by capitalizing profits and cash contributions from shareholders, bond issues, Stock Option programs for team members, securing financing for the acquisition of other companies, the list goes on. Cristian and Mihai Logofatu have shown that in just 5 years, you can grow the value of your company if you take advantage of the opportunities that the capital market provides you", states Adrian Tanase, Bucharest Stock Exchange CEO.

• Six stock exchanges in south-eastern Europe join forces to improve access to finance
• Bittnet Systems (BNET), Conpet (COTE), Patria Bank (PBK) and Teraplast (TRP) are the 4 Romanian mid-cap companies joining the program

The European Bank for Reconstruction and Development (EBRD) is launching a dedicated research programme in support of the development of mid-cap companies in selected countries where the Bank invests.

Funded by the TaiwanBusiness-EBRD Technical Cooperation Fund, the programme will provide research coverage for a set of mid-cap companies listed on the stock exchanges in Bulgaria, Croatia, North Macedonia, Romania, Serbia and Slovenia. The reports will be publicly available free of charge on the newly created Listed SME Research Hub.

The aim is to produce free, publicly available, high-quality research reports to overcome information barriers that depress market liquidity. Making markets more transparent by increasing the amount of reliable information is regarded as key to increasing the availability of financing for mid-cap companies.

• The companies listed on the Bucharest Stock Exchange (BVB) went up by 4.63 percent last month, taking into account the issuers included in the BET index, which comprises the most traded 17 companies.
• The largest monthly increase so far this year occurred as investors positively re-evaluated the Romanian companies listed on BVB as the coronavirus pandemic intensified.
• Radu Hanga, BVB President:
  • There are opportunities in any crisis situation, and they become more obvious and are easier to track on the stock exchange. The companies that had high valuations just a few months prior have become even more attractive to investors. On top of that, the dividend yields paid by the Romanian companies are still appealing to investors.
  • The stock exchange can support the recovery of the economy and can be used to meet the financing demand coming from the state. Our goal is to consolidate the image of the stock exchange as the go-to financing platform for the Romanian state, which can issue bonds to target local investors or bring to market the companies from its portfolio, as well as for the Romanian companies that need to raise capital. All these instruments are available, they just need to be used.
• Adrian Tanase, BVB CEO:
  • Reopening the economy and resuming the economic activities without taking into account the stock market can hinder considerably the chances of success. There is no significant project that cannot be launched on the local stock exchange at this point. Any serious strategy to relaunch the economy has to derive from here.
  • The best way to support the Romanian companies is to invest in them. Supporting the Romanian companies does not have to be a slogan, but a reality that can emerge from using the stock exchange. Any Romanian citizen who buys shares or bonds in the local companies listed on BVB contributes to the rejuvenation of the national economy. Do we want to support Romanian products and services? This is the question we should start from and invest in the companies that provide the transparency required by their publicly listed status.

• As one of the most severe public health crisis intensified, all the main indices of the stock markets within the European Union went into the red at the end of the first quarter.
• Radu Hanga, BVB President:
  • No country has the ability to fight simultaneously against a health crisis and an economic one. Romania's economy urgently needs stimuli and incentives to enable it to recover quickly and remain competitive. It is a historical challenge for Romania, and I think it is in everyone's best interest to come out stronger from this challenge.
  • We reassure the Government of Romania that it has a reliable partner in the Bucharest Stock Exchange, and we express our full availability to identify the best economic solutions that will make a decisive and significant contribution to improve the current economic situation and boost confidence in the measures. We think it has become obvious that we cannot talk about the economy without talking about the stock market as well.
• Adrian Tanase, BVB CEO:
  • The Romanian stock exchange is stable and functional, offers liquidity and shows resilience. Through the stock market, the state can finance its fiscal deficit, support public investment projects and bolster the activity of companies heavily affected by the coronavirus pandemic.
  • We have managed to fulfill the fundamental role of the stock exchange, even under this exceptional situation unfolding at an international scale that resulted in bringing to a halt many economic activities, and we have offered investors the opportunity to access the liquidities invested in securities, during a period when the need for resources had increased significantly. It has been shown once again - if necessary - how important the social and economic function that the regulated stock markets perform is.  

The global index provider FTSE Russell announced at its March 2020 Interim Review a series of clarifications in the case of Romania’s upgrade from Frontier to Secondary Emerging Market status.

FTSE Russell confirms that Romania is on track to be included in the FTSE Russell Emerging Market indices in September 2020. Index eligibility for the September 2020 FTSE Global All Cap annual review will be based on data as of the close on 30 June 2020. The FTSE Russell annual review will analyze the individual liquidity of the monitored companies (8 Romanian listed companies which meet FTSE Russell size criteria) over the July 2019 – June 2020 timeframe. For a company to meet the liquidity criteria, its monthly median liquidity test must be above 0.05% for at least 10 out of 12 months. The monthly median liquidity test, based on FTSE Russell methodology, is calculated for each company as the monthly median of daily traded volumes / free float number of shares. 

• The book launch marks the end of the third edition of BVB's flagship program addressed to entrepreneurs in Romania
• A new Made in Romania edition will be launched soon and major international entrepreneurial companies will join BVB in the 4th edition

Made in Romania: BVB League, Bucharest Stock Exchange (BVB) flagship program addressed to Romanian companies, reached the end of the third edition, an event that is marked by the launch of the book "Made in Romania: 15 companies for the growth of the Romanian economy and their success stories". It is a book of 100 pages that includes the stories of growth of the 15 companies finalists of the third edition Adservio, Agroserv Mariuta / Laptaria cu caimac, AMC RO Studio, Annabella / Raureni, AROBS Transilvania Software, Catena, DocProcess, Elba, Jidvei, Köber, NOAH Watches, Rodbun, Salad Box, Typing DNA and Vivre Deco.

The book can be read and downloaded from Made in Romania dedicated website www.bvbleague.ro or at this LINK.

“Made in Romania is one of the pillars of BVB's strategy to contribute to Romania's economic development, by supporting the diversification efforts determined by innovation and knowledge of the Romanian entrepreneurs. Taking into account SMEs contribution to the GDP and the creation of jobs, the purpose of Made in Romania is to contribute to the development of the Romanian companies, by supporting and promoting them, offering them a whole community of funders and consultants to help them for a sustainable development. All entrepreneurs, regardless of the industry in which they operate, deserve a chance to thrive. Many of the companies we have met since launching Made in Romania are fantastic, they have a viable business model, some perform on their market segment, some could become global products and others can become the companies of the future economy ”, said Radu Hanga, Bucharest Stock Exchange Chairman of the Board of Governors.

• Adrian Tanase, BVB CEO: The inclusion of Teraplast company in BET and BET-TR indices comes to complement and better represent the sectors on the stock exchange. From the point of view of the investors, either institutional or retail, the sectorial diversification is an essential element in the investment strategy.
• Alexandru Stanean, General Manager TeraPlast: We are determined to continue to serve the interests of our shareholders and potential investors, proving that we are a stable, attractive, and liquid company that they can trust. We have the necessary resources to reach our objectives for 2020, and the first months of this year are within the forecast parameters.
• Radu Hanga, BVB President: We need success stories, both in Romania and especially on the stock market. We want to see that more and more Romanian issuers listed on BVB assume a leadership role in their fields of activity, both at national and regional levels.

The FESE membership, comprising of Exchanges across Europe, are not immune from the effects triggered by the rapid spread of Covid-19 and its impact on the economic environment. Whilst this situation is not without its challenges for exchanges, it is crucial that the markets remain open.

Regulated stock markets fulfil a social and economic function that must prevail in times of uncertainty.  Exchanges play a key role in providing price formation, transparency and liquidity. Preventing them from fulfilling this role would have a huge impact not just on the economy but society too.

These functions have been put to the test in the past for example during the financial crisis - when other sources of liquidity dried – exchange markets successfully continued to operate. This situation is no different, exchanges should continue to be operational to maintain trust.

FESE Members’ guiding principles remain transparency and objectivity, especially in these times of uncertainty.

European Exchanges will and should continue to remain open at all times to ensure safety, integrity and fairness in a secure and transparent manner.

Bucharest Stock Exchange (BVB) is concerned about ensuring adequate measures, in the context of the evolutions generated by the Coronavirus (COVID-19).

Following the instructions of the central authorities regarding the security measures to be implemented during this period, for the safety of all persons who have access to the closed spaces and / or the open public spaces and to the personnel employed, in the context of Coronavirus (Covid-19), as well as to maintain an orderly market and equal access to information for all stakeholders, starting March 19th, 2020, please use the electronic communication channels in relation with BVB, as follows:

• The participants, the issuers, as well as other entities with which BVB is currently interacting will use, depending on the specific activity, the usual electronic means of communication in relation with the BVB: e-mail, electronic systems - IRIS, messaging system etc.
• Individual investors, as well as for any other requests addressed to BVB: BVB's e-mail address: bvb@bvb.ro

• Preventive measures necessary for the normal activity of the market operator have been implemented
• A plan is envisaged that also provides for remote work
• Events planed for March have been canceled

Bucharest Stock Exchange (BVB) informs all the capital market stakeholders that it has implemented measures to prevent the influence of COVID-19 on the current activity of the market operator and of its employees. BVB has a Business Continuity Plan even for cases where the activity can no longer be carried out from the headquarters, a plan that involves even the remote work, even from home.

Since February, BVB has carefully monitored the evolution of the situation as presented by the authorities and implemented the necessary preventive measures for the normal conduct of the activity at the level of the market operator. Internally, BVB has announced its employees the measures they are obliged to take and what to do if any person presents specific symptoms triggered by this virus. In the context of the recent events regarding COVID-19 in Romania and the measures taken by the authorities with the acceleration of the spread of COVID-19 in Romania, almost half of BVB employees started working from home, by rotation, and within the BVB premises were taken additional hygiene and disinfection measures.

• The main international markets nosedived into the negative zone at the end of the first two months this year: In Europa, DAX (Germany) fell by 10.2 percent, CAC 40 (France) went down by 11.2 percent, FTSE 100 (UK) tumbled 12.7%, while US’s Dow Jones dropped by 11 percent, and S&P 500 by 8.6 percent. The Romanian stock market also experienced turbulences and posted a decline of 8.6 percent in the first two months, after the BET index peaked to a 12-year high, and BET-TR saw new record highs.
• Adrian Tanase, BVB CEO:
  • The Bucharest Stock Exchange, like all the modern stock exchanges, has implemented systems that can cope with excessive volatility and they can be triggered under extreme stress for the markets. Until now, the Romanian capital market has shown resilience in an international context government by growing uncertainties and increased volatility, and the investors have the opportunity to decide how to act or react according to their investment strategies.
  • I think that one of the fundamental things that Romanian investors should take into account when investing in the financial instruments issued by the Romanian companies listed on the Bucharest Stock Exchange is to have the perspective not of occasional buyers of shares or bonds, but of long-term investors in the Romanian economy. This perspective in their investment approach, coupled with a reasonable expectation horizon, may return increased positive results than emotionally conducted transactions.

• Cosmin Ghita, CEO Nuclearelectrica: Nuclearelectrica intends to be included in the FTSE Russell index of the London Stock Exchange and for this purpose, it aims to increase its liquidity and implicitly, the value of its shares.
• Monica Ivan, CEO BRK Financial Group: BRK Financial Group's commitment to contribute to improving liquidity continues by assuming the role of market maker for a new issuer - Nuclearelectrica.
• Adrian Tanase, CEO BVB: Nuclearelectrica is one of the companies that could be included in the FTSE indices for emerging markets if it also fulfills the liquidity criterion, given that the size criterion is already met.

Societatea Nationala Nuclearelectrica (SNN), the sole producer of nuclear power and nuclear fuel using CANDU 6 type technology in Romania, will benefit as of March 11th from the issuer’s market-making services provided by SSIF BRK Financial Group (BRK), one of the most active brokerage companies trading on the Bucharest Stock Exchange (BVB).

• The Romanian stock market went slightly up at the end of the first month this year as the BET index traded half-percentage point higher, after having repeatedly tested the 10,000-point mark, the highest level in the last 12 years.
• Adrian Tanase, BVB CEO:
  • We are living in an international context marked by volatility, which stems from investors' uncertainties about what positions they should take in the markets. Beyond external influence, domestic factors could also trigger misalignments to the trend of international markets. It is difficult, at this moment, to imagine that we will have in 2020 a growth rate similar to that of 2019, namely 35% for BET or 47% if we take into account the dividends. Should disruptive factors not occur, nor should the Romanian economy slow down, the publicly traded Romanian companies have solid foundations to contribute to the overall growth of the market this year as well.
  • At the end of last year, we started the most ambitious project to develop the infrastructure óf the local stock exchange, once the company that will operate the central counterparty was set up. After the authorization process is completed, we will be able to relaunch the derivatives market. Beyond this project aiming to turn the secondary market more efficient, we have also established the framework for enhancing the liquidity by offering issuers the possibility to conclude market-making contracts with the market participants, a feature that finds increasingly practicability.
  • To have a greater weight of the stock market in the economy, BVB's efforts will have to be backed by the state authorities to support the listings of the companies and to stimulate the population to save in the securities portfolios.

• Alexandru Stanean, General Manager TeraPlast: Our collaboration with BRK Financial Group is a new step in line with our goal of creating value for shareholders by improving liquidity and minimizing volatility. In our activity, we rely on the implementation of the best practices at international level, and we want to become a model for other companies that want to take the step towards the stock market.
• Monica Ivan, General Manager BRK Financial Group: We are pleased to announce we have signed a new partnership regarding market-making services for issuers, in which we intend to support the improvement of the liquidity of Teraplast SA shares. Our commitment consists of displaying a minimum volume of 750,000 shares for the buy and sell-side, within a spread of 1%. We congratulate TeraPlast for understanding the benefits of a partnership with a liquidity provider who has proven its expertise in this regard.
• Adrian Tanase, CEO BVB: We want a significant increase in liquidity on the stock market, and the framework set by the Issuer's Market Maker program proves that opportunities are accessed especially when companies have the necessary environment for development. This shows that the Bucharest Stock Exchange fulfills its role of implementing the most effective solutions for enhancing liquidity, in particular, and the market, in general.

• Monica Ivan, General Manager BRK Financial Group: BRK Financial Group continues the business direction initiated last year by offering market-making services to the listed issuers and it is a great honor to announce the partnership with MedLife SA, the first issuer from the BET index that concludes a Market Making contract with an intermediary. It is an ambitious project, and we hope that the liquidity of the MedLife shares will significantly improve.
• Mihai Marcu, President and CEO MedLife: MedLife has always been performance-driven, regardless of the social or political context. It was the first medical company in Romania to be listed on the Bucharest Stock Exchange, and it was included in the BET index shortly after, as a result of the qualitative and quantitative standards we met. We constantly aim to thrive and, because liquidity is an extremely important indicator for attracting investment funds, we have decided to implement this Market Making program as well.
• Adrian Tanase, CEO BVB: We are pleased to see that two entities active in the Romanian capital market are working together to enhance liquidity and increase the degree of representativeness among investors. Such partnerships are the result of some of the specific steps we have taken at BVB in order to increase market liquidity after having established the general framework for the issuer's Market Making program last year. We would like these examples to be replicated by other issuers as they can benefit from this framework, which creates the premises for enhanced liquidity.

• The BET index, which includes the most-traded 16 companies listed on the Romanian stock exchange, except for the Financial Investment Companies, went up by 35% in 2019. It is the largest yearly growth rate in the last decade posted by the Romanian stock market and the second increase rate in 2019 among EU capital markets. Accounting for dividends, the market spiked up by 47%.
• Adrian Tanase, BVB CEO:
  • The year 2019 was the building year: we laid the foundations of the Central Counterparty Clearing company (CCP), a fundamental entity for developing market liquidity, and paved the way to meet all the criteria to be promoted to the Secondary Emerging Market status.
  • The priorities for 2020 aim at the logical continuation of this construction: the process to authorize and implement the CCP, which will allow the relaunch of the derivatives market, improve the efficiency of the stock exchange operations for the capital market participants, promote the Romanian companies in the FTSE Russell indices for Emerging Markets, and, last but not least, continue our efforts to significantly improve population participation in the capital market.
  • The year 2020 can be even better for the Romanian stock exchange, if the state resumes the listing process, frozen over the last 5 years, to sell minority stakes in state-owned companies such as Hidroelectrica or CEC Bank. For enhanced relevance, the weight of the Romanian companies listed on the stock exchange as a weight in GDP should double and reach 20% in the next 10 years, and this can be achieved through the involvement and support of the state authorities.