After Viena, the Proprietatea Fund gets on the Frankfurt Stock Exchange

While Romanian brokerages are still dreaming of the listing of the Fund on the Bucharest Stock Exchange, derivatives based on the shares of the Fund have already begun trading one month ago on the Frankfurt Stock Exchange. They were launched by the structured products division of the "Unicredit" group. The move of the Italian bank comes after that of the Czechs of "Wood& Company" which launched warrants for the Proprietatea Fund on the Vienna stock exchange, at the end of last year.

Liviu Giugiumică, the head of "UniCredit CAIB Securities România", explained for "BURSA", why his German colleagues opted to list the derivatives on the Frankfurt Stock Exchange: "We chose the Proprietatea Fund as an underlying asset for the derivatives because it has a certain visibility of the Fund on a more developed market. We launched the warrants on the Frankfurt Stock Exchange because it was a lot easier to list them there, the process basically takes 3 days over there. Also, the structured products division for the Central and Eastern Europe of "Unicredit" is in Munich, one more reason why the listing of the shares of the Proprietatea Fund took place on the Frankfurt Stock Exchange".

Giugiumică explained that some foreign investors would be interested in investing in derivatives of the Proprietatea Fund listed in Frankfurt, even though is not expected to get listed on the BSE before the beginning of 2011, as announced by "Franklin Templeton" at the moment it took over the management of the Fund.

"There are investors in the fund which, due to technical reasons, can"t invest in Romania", Giugiumică explained.

At the end of yesterday"s session, the price for a warrant on shares of the Proprietatea Fund on the Frankfurt Stock Exchange was 117.25 Euros (bid) and 122 Euros (sale).

A warrant has 1,000 shares of the Proprietatea Fund. The quotation of the warrants in Frankfurt puts the price of a share of the Fund at approximately 0.51 lei.

The representatives of "Unicredit" have also said that since the warrants were launched in September this year, their turnover reached the equivalent of several tens of million of shares of the Fund.