Brokers" Market, But Built On BSE Platform Dan Paul: We will see that the BSE does not lose anything

The over-the-counter trading mechanism developed by the Brokers" Association will run on a section of the ARENA Trading Platform of the Bucharest Stock Exchange (BSE), in exchange for a fee, market sources indicated.

"Based on an outsourcing contract, the Bucharest Stock Exchange will provide administration and platform services for the negotiation and informative quotations market of the ROTC," the sources told BURSA.

The representatives of the two institutions will soon negotiate the price of the services that the Bucharest Stock Exchange will thereby provide to the Brokers" Association.

"The method of calculating the commission has not been defined yet. The Bucharest Stock Exchange may charge a percentage of the commissions collected by the Brokers" Association as the market operator. Another possibility would be to pay a fixed monthly price to the BSE," the sources said.

Dan Paul, President of the Brokers" Association and Vice President of the Bucharest Stock Exchange, told BURSA that the OTC trading platform was similar to the old platform of the BSE.

Asked whether he was in a conflict of interests, given his dual capacity as President of the Brokers" Association and Vice President of the Bucharest Stock Exchange on the one hand and the future price negotiations between the two entities on the other hand, Dan Paul said: "The Association will reimburse the BSE for all software-related expenses and pay a monthly fee for the services. We hope it will be a reasonable amount. We will see that the BSE does not lose anything. Moreover, the BSE already offers such services to other companies, too."

The associated brokers agreed to establish an over-the-counter market late last week, when the motion for creating the Romanian Over-The-Counter was unanimously adopted by the General Meeting of the Brokers" Association. On the same occasion, the Association decided that ROTC should become operational on 1 October.

Dan Paul, the initiator of the ROTC project, on Friday said that over 90 percent of the ROTC transactions would involve shares in Fondul Proprietatea.