THE INCOMPATIBILITY, AGAIN The CNVM rejects the argumentation of the Bucharest Stock Exchange incompatible on the matter

The Romanian National Securities Commission yesterday shot down the argumentation of the general manager of the BSE, Valentin Ionescu, who, as written in Friday"s edition of "BURSA", claimed that the "Rasdaq" market had not been classified by the CNVM as a "regulated market", nor as an "ATS", thus using this nitpick to support his argument that there is no incompatibility in the fact that two members of the board of the Central Depository also hold management positions in some of the companies listed on the "Ras-daq" - a situation revealed by our newspaper.

Also last Friday, the CNVM posted a notice on its website in which it stated that the restriction on holding management positions in the Central Depository and on the Board of Directors of companies listed on regulated markets and on the ATS also applies to companies listed on the "Rasdaq" market.

A simple and to the point rebuttal of the argument used by the general manager of the BSE, with the latter showing his shaky ethic, in my opinion.

But, the moral issue created by the argument used by the general manager of the BSE has unexpected effects on the Bucharest Stock Exchange itself.

The definition of the "Rasdaq" market is important to the shareholders of the BSE, because, among other things, that market accounts for approximately 10% of the BSE"s revenue.

In other words, the 10% that makes the difference between survival and bankruptcy.

Under normal circumstances, one would expect the officials of the BSE would not be happy with the uncertain status of the "Rasdaq" market and that they would be pushing for the CNVM to clarify it.

Apparently, the CNVM has tolerated the temporary functioning of the "Rasdaq" market, which will be dismantled soon, for two reasons (which make sense in my opinion): 1. To ensure that investors are "protected" (even though that word seems to have been permanently misinterpreted by brokers and by the CNVM, ever since the time when Stefan Boboc was the chairman of the CNVM to the present day); 2. To give issuers enough time to decide whether they want to move to the BSE or to an ATS (Alternative Trading System), in order to avoid depriving the stock market (and the BSE in particular) of its companies, which are its lifeblood.

Well, this second reason - the fact that the CNVM is helping the BSE by avoiding to come out and say that the "Rasdaq" is not an officially regulated market - should make the general manager of the BSE keep as quiet as possible, and be happy the Romanian National Securities Commission is so tolerant.

On the contrary, using the uncertainty of the Rasdaq"s status, simply means that he accepts that this is how things are in his house: that the Bucharest Stock Exchange runs a scam that misleads investors by claiming it is a regulated market.

If Valentin Ionescu thinks that the Rasdaq is not a regulated market, and it isn"t an ATS either, then why doesn"t he have it shut down, right away?!

It is within his power!

How ironic! Back when Siminel Andrei was in charge, brokers wanted the Rasdaq to be called "The electronic Rasdaq exchange"!

I for one wouldn"t call it that.

I"ve known it was a sham since its inception.

And I"ve been saying it for a long time.