HAPPY THAT HE DIDN"T GET IT HIS WAY ON THE MATTER OF THE DUAL LISTINGS WHICH HE WAS SUPPORTING LAST YEAR Sobolewski wants the bulk of the Romgaz offer to go to the BSE

The offer for the listing of Romgaz has to be structured so that most of it will come in the form of shares on the Bucharest Stock Exchange and only a little party be structured in the form of GDRs (global depository receipts) in London. This was the message conveyed by Ludwik Sobolewski, who had his first press conference in Bucharest, since his appointment as CEO of the Bucharest Stock Exchange.

"This is the best compromise", he thinks, and he went on to say: "In doing so, I have laid the groundwork for the future transactions".

Sobolewski explained that he is not arguing in favor of the idea to have the IPO of Romgaz occur exclusively on the BSE: "We are all in agreement - the executive of the BSE, the state and the underwriters' syndicate - that the offer has four goals: the best execution, a good market after the completion of the offer, providing a model for the next transactions of the same type and laying the foundation for the long term development of the capital market".

If anyone is suggesting that the BSE is arguing for a specific structure of the IPO for its own profit, they are mistaken. No one is thinking like that here".

The IPO for the sale of 15% of the national gas producer Romgaz is set to take place in October, with the state expecting to make 600 million euros from the sale.

Last year, Ludwik Sobolewski, in his position of CEO of the Warsaw Stock Exchange, spoke, in Bucharest, to the Romanian officials about the dual listing of the Proprietatea Fund and about the privatization schedule. At the time, he had told us the following in hi statement: "Our goal was to show the Romanian authorities, which probably had several options about how to approach the privatization deals and the case of the Proprietatea Fund, that the best scenario would have been a partnership with the Polish stock market and the Warsaw Stock Exchange".

Now, Sobolewski expressed his contentedness that his project fell through: "I have supported the dual listings, last year, because I was one of those who was implementing an aggressive strategy on the WSE. I wanted the Proprietatea Fund to come to Warsaw. Now that I am in Bucharest, I am glad it didn't work out".

The CEO of the BSE considers that Romgaz will be a successful deal and that it will pave the way for the future listings. He is not considering the scenario of the listings schedule being halted and he says that the repeated postponements don't faze him.

• The new CEO wants frequent listings

Ludwik Sobolewski yesterday said that one of his concerns is increasing the number of listings of private companies.

He said that on the stock market, he wants to frequently have debuts of new companies, not just once a year.

"If we succeed in convincing notable private companies to get listed, they will inspire other companies", Sobolewski said, and he went on to say: "A mechanism based on competitiveness will be created. I wish the managers were aware of the fact that their rival companies that get listed get further ability to raise capital, they also have some expenses and obligations, but they get benefits from those as well".

According to him, these listings would also have an impact on trading volumes.

• "Bank depositors need to also have more interesting alternatives than casinos"

"Bank depositors need to also have more interesting alternatives than casinos, and one of them should be the stock market", says Ludwik Sobolewski.

Over 40 billion Euros are deposited in the Romanian banks, while, on its good days, the BSE doesn't have a turnover higher than 10 million Euros.

The CEO of the BSE says that our market deserves to have 200,000 local investors, within a period of two years.

Sobolewski said that often times, education is underestimated: "We need a sympathy of the population. In the near future, I will be going to places in Romania where perhaps not even you have been before".

According to the CEO of the BSE, 70% of the efforts and the energy of the Bucharest Stock Exchange needs to be focused on reducing the "baggage" that makes it different, in a bad way, and which creates reluctance among potential investors.

"Eliminating problems isn't something as spectacular as innovation, but it is very important. Only 30% of our efforts will go towards innovation, in the coming two years", said Ludwik Sobolewski.

• The strong points of the capital market

In the opinion of the CEO of the BSE, the Romanian stock market has some "perhaps unique" strong points: "First of all, the size and the localization of the market. The fact that it is located between the East and the West, and that it is close to markets such as Turkey is very important. Secondly, you have a community here, far greater than the stock market in itself, which means that there are people interested in what is happening with the Stock Exchange, with the capital market, with privatizations. That doesn't mean that everyone should get along with everyone".

• "You are not that original"

In the words of Sobolewski, it all sounds nice. But this market community that he speaks of, is the same one that we know, divided by petty interests and useless squabbles over nothing.

The CEO of the Bucharest Stock Exchange doesn't seem too scared, at the moment, about the fact that his last two predecessors were dismissed, following such frictions with the market community: "I don't mind disputes. It all sounds very familiar. Sides, disagreements, interests, you are not that different from a cultural point of view from other societies. Don't think you're that original".

Another strength of our market, according to Sobolewski, is the fact that English is known by most people: "You have, and I apologize for saying < you >, normally I would say < we >, communication ability. Everyone speaks English here. It is very important".

• Increasing access to the market, another topic for Sobolewski

Increasing access to the market is essential - improving the procedure for opening accounts, seeking to create a trading environment like abroad, because we need investors, who are attached to the developed markets, the new CEO of the BSE says.

According to him, providing access to the market to international investors is crucial.

"We need to adapt to the needs of the foreigners and that is how we will facilitate the access of the local investors", he said.

Ludwik Sobolewski was appointed as the CEO of the BSE in the beginning of July and took over the reins almost two months later, following his approval by the Financial Supervision Authority (ASF) on August 21st.

He led the Warsaw Stock Exchange for seven years, between 2006 - 2013, during which time Polish stock market became the largest in Central and Eastern Europe.