FSA approves a number of changes to BVB Rulebook aimed at restructuring the regulated market

The Financial Supervisory Authority  has approved a series of changes proposed by the Bucharest Stock Exchange (BVB) to its Rulebook for Market Operators so as to increase the visibility and trading  turnover on the regulated market, informs a press release.

The updated Rulebook eliminates the provision that states that that the current reports should be submitted by issuers only outside the trading hours, among others. Once this change enters into force, the issuers will be able to send releases and current reports as soon as available, also during the trading session, but no later than 24 hours following the concerned event. However, if during a trading session an issuer is to submit an informing or current report that contains information that could significantly impact the price, yield or investment decision, it must be notified to the BVB with at least five minutes before its release.

"All companies listed on the regulated market are now allowed - and strongly encouraged - to release current reports as soon as they are ready to go. It is in the interest of issuers to feed the market with information, on a continuous basis, and not to wait until the trading session is ended or to submit the reports only before it starts. Continuous reporting creates liquidity, and minimizes risk inherent to the possession of price sensitive information. It also imposes new attentiveness on the investors, making them fully aware participants of the market”, explained Ludwik Sobolewski, BVB CEO, according to the mentioned release.

Another aspect introduced by the amended Rulebook concerns the suspension from trading of financial instruments during issuers’ General Shareholders Meeting which will be eliminated as of November 10, 2014.

Additional improvement aimed at restructuring the regulated market is the replacement of tiers 1, 2 and 3 for shares with two new tiers - Premium and Standard. Along with the general criteria that shares must meet for listing on the Regulated Market, the free float market value for issuers that wish their shares to be admitted to the Premium tier will have to equal at least EUR 40 million.

The new Rulebook will also introduce a number of provisions relating to the new BVB Corporate Governance Code. Thus, following the entry into force of the amended Rulebook, the issuers must submit to BVB a current report whenever they will be in a situation to not comply with one or more provisions of the Corporate Governance Code. In view of recognizing the efforts of the issuers that comply with the Code of Corporate Governance, BVB may adopt measures to reward them, such as: reducing maintenance fees, including the issuers in a dedicated index, awards, promotion of the issuers during some events or publications etc.