To: Financial Supervisory Authority
Financial Instruments and Investments Sector
Fax: 021- 659.60.51
Bucharest Stock Exchange – Regulated market
Fax: 021- 256.92.76
From: Bursa de Valori Bucuresti S.A. (Bucharest Stock Exchange)
according to the provisions of Article 99 letter s) of the Rulebook of Bucharest Stock Exchange – market operator, Title II- Issuers and Financial Instruments
Report date: July 28, 2016
Name of the issuing company: BURSA DE VALORI BUCURESTI S.A.
Registered office: 34-36 Carol I Blvd, 13-14 floors, district 2, Bucharest
Phone/fax number: + 4 021/307.95.00, + 4 021/307.95.19
Sole Registration Code with the Trade Register Office: 17777754
Order Number in the Trade Register: J40/12328/2005
Share capital: RON 76,741,980
Regulated market on which the issued securities are traded: Bucharest Stock Exchange – Premium Shares Tier (market symbol: BVB)
Important events to be reported: New operations possible starting August 2, 2016
Bucharest Stock Exchange (BVB) announces the possibility to carry out lending&borrowing operations, short selling and buying on margin starting from August 2, 2016 in a new and flexible regulatory framework that will allow investors to benefit of any market trend. Thus, the process of approval of the changes and complements brought to the BVB’s Rulebook – market operator and to the Central Depository’s Rulebook by the regulatory authorities of the corresponding regulatory framework was concluded.
From the BVB’s Rulebook, the operational and technical restrictions applicable to short selling were eliminated. Among the important changes were:
· Possibility to carry out short selling operations for the financial instruments admitted to trading at BVB, regardless of their type and features;
· Possibility to enter short sell orders without any restrictions related to price, minimum volume or order type;
· Eliminate the obligation to specifically mark the short selling orders.
The information with regard to the volume and the number of short selling trades will not be included anymore in the daily trading reports issued by BVB.
The changes of the Central Depository’s Rulebook related to lending&borrowing operations of financial instruments refer mainly to the following:
· Eliminate the obligation to use a standard lending agreement and send it to the Central Depository;
· Possibility to carry out such operations with all the financial instruments registered in the Central Depository system;
· Set up of guarantees on a larger array of financial instruments;
· Expand the scope for which securities lending&borrowing operations may be performed;
· Eliminate the maximum number of business days corresponding to a securities lending agreement.
The current regulatory framework includes NSC’s Regulation no. 32/2006, with subsequent changes and supplements, NSC’s Regulation no. 5/2010, with subsequent changes and supplements, FSA’s Regulation no. 6/2016, BVB’s Rulebook and Central Depository’s Rulebook.
There are no other events to report.