Stockbrokers discussing the creation of an OTC market

The board meeting of the Association of Stockbrokers will discuss the project for over-the-counter trading of companies unlisted on the Bucharest Stock Exchange or which have been delisted, keeping shareholders captive.

The initiators of the project are hoping to convince approximately 200 companies to join the OTC market, with the most interest revolving around the Proprietatea Fund, which currently trades in a less transparent manner.

"We had talks with the officials of several of the 200 companies that we are looking to bring to this platform, in order to allow trading of more companies than just the Proprietatea fund", Dan Paul, chairman of the Association of Stockbrokers yesterday said. He explained however, that the strategy for attracting these companies relies on direct communication with the management of the companies in question. Brokers will play an important part, as they will have to find their own customers.

"Brokers to go talk to people in these companies face-to-face to try and convince them to list their companies on this OTC market", Dan Paul added.

The project of the OTC was presented at the end of June 2009, at the annual convention of the Association of Stockbrokers.

It is unclear for now whether this project of the association of brokers will need the approval of the National Securities Commission (CNVM) or just the approval of the Association. A few weeks ago, CNVM officials said that any project related to the domestic stock market needs to be approved by the Commission.