Grigore Chiș, general manager of Broker Cluj, fighting to retain its position as the biggest independent brokerage on the Bucharest Stock Exchange, says the domestic capital market needs to reshuffle and believes the start of the reorganisation process will be the listing of Fondul Proprietatea (Property Fund – FP) on the Stock Exchange, scheduled for January 25.
To be able to trade Fund stock, brokers will have to upgrade
their IT and back-office systems and with the introduction of
global accounts the market will align itself to the rules and
instruments of developed market, such as margin transactions, short
selling or market makers securing liquidity.
“I believe the norm introduced by the CNVM (National Securities
Commission) on FP listing without individual accounts should be
welcomed. Those who do not carry out the audit will not be able to
trade on global accounts and this will virtually mean their exit
from the market. I do not believe there will be any brokerage
telling its clients it cannot trade in FP stock,” Grigore Chiș
says.
He estimates an independent brokerage that wants to trade using the
global accounts system needs to take around 175,000 euros out of
its pocket. Chiș believes that to bear these costs many brokerages
will be forced to merge, specifying he is in talks with several
brokerages to this end.