The Bucharest Stock Exchange (, BVB) is the stock exchange of Romania located in Bucharest. In 2019, the capitalization of BVB increased 23.4% compared to the previous year, to the value of EUR 37.8 billion. there were 83 companies listed on the BVB.
The capitalization of the Romanian capital market in relation to GDP was of 17.9% at the end of 2019. That same year, the stock exchange indices reached their highest level in the past 10 years. The BET index went up 35% and the BET-TR rose more rapidly, by 47%, against the dividends distributed by the companies.
, the most liquid company within the BVB’s main (Regular) market was Banca Transilvania (TLV), which owns approximately 30% of the total traded value. The following most liquid companies were Fondul Proprietatea (FP), BRD - Groupe Société Générale (BRD), Romgaz (SNG) and OMV Petrom (SNP).
In September 2020, the Bucharest Stock Exchange was promoted from the category of Frontier Market to the category of Secondary Emerging Market by the FTSE Russell rating agency.
History
Beginnings of the history of the Bucharest Stock Exchange can be traced back to 1839, when the commodities-trade exchanges were established in Bucharest. It was nevertheless only on December 1, 1882 that the BVB was officially inaugurated. One week later, the first exchange rates begun being published in the Official Gazette. Throughout its early existence, the activities of the Bucharest Stock Exchange were affected by the socio-political events of the time, such as the Romanian Uprising of 1907 or the Balkan Wars that took place between 1912 and 1913. The stock exchange was moreover closed during the First World War. When BVB re-opened following the end of the war, it went through a period of 7 years of significant growth, followed by a period of 7 years of accelerated loss.
In 1948 the activity of the Market for Effects, Actions and Exchange was stopped, with the establishment of the Communist regime in Romania and the beginning of the nationalisation process. At that time, shares issued by 93 companies and 77 fixed-income instruments (bond type) were listed on the Bucharest Stock Exchange.
The Bucharest Stock Exchange reopened again in 1995, after almost 50 years of being shut down by the Communist regime. The first trading session was carried out on November 20, 1995. On that date, 905 shares issued by 6 listed companies were traded. In 2005, BVB absorbed RASDAQ – the over-the-counter electronic stock market. On February 14, 2008, Erste Bank listed on BVB and became the first international company listed on the regulated market.
Subsequently, Bucharest Stock Exchange experienced continuous development and was established as the main stock exchange in Romania. In 2010, Bucharest Stock Exchange listed on its own spot regulated market under the symbol BVB. In 2010, the Alternative trading system was launched by BVB for SMEs and start-up companies wanting to raise capital from the market. At the end of 2014, it was announced that the equities segment of the ATS market will be re-launched under a new name 'AeRO' which stands for Alternative Exchange in Romania. AeRO was officially relaunched on February 25, 2015 during an official opening of the trading session during which two companies debuted - Delivery Solutions (symbol: SDAY) and Carpathia Capital (CRPC). AeRO targets early stage companies, to finance their projects, growth stories, increase their visibility and contribute to the development of the business environment.
On December 15, 2014 BVB has launched a new website, synchronized with all the channels used by BVB, including social media pages. On March 27, 2015, BVB announced that it was joining the United Nations Sustainable Stock Exchanges initiative making it the 19th stock exchange to join. The Bucharest Stock Exchange is a member of the Federation of Euro-Asian Stock Exchanges.
Activities
The Bucharest Stock Exchange is a market and system operator authorized by the Financial Supervisory Authority (FSA) that manages a Regulated market (RM) and an Alternative Trading System (ATS) compatible with European standards. BVB also operates a market section called RASDAQ. The following types of financial instruments are traded on BVB: shares, rights, bonds, fund units, structured products and futures contracts. BVB operating revenues are generated mainly from trading activity, from membership and listing fees, as well as from data vending to various users.