Romanian Securities Commission: Companies listed on the Rasdaq market that do not want to move to the regulated market should go to the ATS

On Monday, the Romanian Securities Commission (CNVM) proposed to the managers of the Bucharest Stock Exchange, to issue the bases of a pilot project, by which several companies listed on the Rasdaq market would conform to the demands of the regulated market, according to sources on the capital market. Companies not interested in being transferred on the regulated tier of the exchange would be transferred to the Alternative Trading System (ATS), the sources said.

"The Stock Exchange should select the companies on the Rasdaq that meet the requirements for being listed on the Stock Exchange. Eligible companies would then be required to meet the conditions of the regulated market. According to the proposal of the CNVM, the Exchange would have approximately one year to available to determine which issuers want to switch to the main regulated market, and which ones would rather trade on the ATS. At any rate, the Rasdaq needs to disappear", market sources said.

The stock market regulator made a similar proposal to the Exchange last year. At the time, the management of the Bucharest Stock Exchange had proposed a project that would involve the transfer of 271 companies listed on the Rasdaq to the main tier of the exchange, but the project did not receive the approval of the Commission, because the Exchange claimed that there was no need to ask for the approval of the issuers before moving them to the main tier. The proposal made by the CNVM on Tuesday to the management of the Exchange emphasizes the need for the issuers" agreement before they are transfered to the regulated market.

The chairman of the Stock Exchange, Stere Farmache, confirmed for BURSA, that he met with the officials of the CNVM on Tuesday, in one of the monthly meetings that the two institutions hold together.

Stere Farmache said: "One of the subjects on the agenda was the clarification of the status of the Rasdaq market. The Exchange again expressed its position that companies which meet the minimum requirements for the regulated market would have to abide by the rules of this tier in order to be admitted on the regulated market".

The National Securities Commission is in a hurry to elucidate the status of the Rasdaq market, as the court of Arad last week gave it a 60 days notice to decide whether the Rasdaq is a regulated market or not.

CNVM officials issued a press release which states that they intend to clarify the status of the Rasdaq market within the next two months, following approvals from the management of the Stock Exchange.