CNVM contemplating new capital market legislation

Only one year after the enforcement of the first provisions of the revised capital market legislation, the National Securities Commission (CNVM) is working on a series of amendments to have it modified. The new capital market regulations will make up a single law in line with the corresponding legislation in the EU.
There is no deadline for the new legislation to be enforced yet, but experience acquired while harmonising other laws with the EU provisions shows it will be a lengthy process.
The new legislation targets reorganising the securities market. The RASDAQ representatives several weeks ago suggested the two organised capital markets in Romania should merge, but not many people actually paid attention back then.
From that moment on, the proposition has turned into an object of debate for the capital market institutions. The CNVM headquarters at the end of last week hosted a meeting between the representatives of the two markets, the Bucharest Stock Exchange (BSE) and RASDAQ, and Alexandru Popa, PM Adrian Nastase’s advisor. The parties debated establishing a consolidated capital market. The commission instructed the representatives of the two capital markets to come up with concrete market reorganisation proposals, which should be in line with the EU legislation. Gabriela Anghelache, CNVM chairman has already proposed two reorganisation options. “The first solution is to consolidate the market starting from the two already existing structures, BSE and RASDAQ as regulated markets with two separate trading systems, and the second option is to create a single regulated market. In both cases, the clearing will be handled by a single depositary,” a Commission release reads. One of the arguments of those in favour of reorganising the two capital markets is that this step would cut trading, clearing and depositing costs. vlad.nicolaescu@zf.ro