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Message of the Vice President of ASF, Mr. Gabriel Grădinescu, on the occasion of the event “Emerging Romania” from September 21th, 2020

Bucharest, 21st of September, 2020 – I hereby join the message of the President of the Financial Supervisory Authority, Mr. Nicu Marcu, who congratulates the Bucharest Stock Exchange for the successful fulfillment of the objective related to the classification of the capital market in Romania among the emerging markets category.

This goal of the entire capital market community has been supported by the Authority ever since 2014, within the strategic project entitled STEAM (Set of actions Towards Establishing and Acknowledgement of the emergent Market status).

The objective of the project was to enable the reclassification of the capital market in Romania, by the global suppliers of financial indicators, from the category of Frontier Market to that of Emerging Market. On this occasion, we practically mark, starting today, the entrance in a new phase of development of the Bucharest Stock Exchange, meaning the path related to reshaping the status of emerging market into that of developed market.  

In what concerns the contribution of the Authority to the fulfilment of this objective (I dare call it country objective), I would like to point out the sustained efforts carried out by my colleagues within the STEAM project started since 2014.

By this strategic project of the Authority, we have reduced the legal barriers related to the revision of the primary and secondary legislation in the capital market, by way of:  

  • releasing the Law no. 24/2017 on issuers of financial instruments and market operations, currently offering a more flexible legal framework of operation for the issuers listed on the stock exchange;
  • releasing the Law no. 126/2018 on the financial instrument markets, which has harmonized the local status quo with the European Directive MiFID 2;
  • updating the legislation on investment funds, with reference to the release of Law no. 243/2019 on Alternative Investment Funds (Ro. FIA) and of Law no. 29/2017 on OPCVM (open investment funds);
  • issuing the secondary subsequent regulations elaborated by the Authority in the application of these laws;  

 Another level of contribution of the Financial Supervisory Authority for the achievement of this status, of emerging market, was related to the development of the retail market, the development of the bond market (corporate and government securities, in cooperation with the Ministry of Public Finances) and of the financial education within the entire market. 

At the same time, I would also like to mention the implication of the Authority in the consolidation and modernization of the capital market infrastructure, namely in the set-up pf the Central Counterparty. The first stage has been covered by the incorporation and registration of the company having the role of Central Counterparty, as per the European Regulation EMIR (no. 648/2012), given that this counterparty will host the infrastructure enabling the re-launch and development of the derivatives market in Romania. 

In conclusion, I hereby would like to reassure all our partners in the capital market that we will continue to work for the development of the local stock exchange and for the provision of the necessary protection to all investors.

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About the Financial Supervisory Authority

The Financial Supervisory Authority is the national authority set up in 2013 by EGO no. 93/2012, approved by Law no. 113/2013, for the regulation and supervision of insurance markets, private pensions, as well as the capital market. ASF contributes to strengthening the integrated operating framework of the three sectors, which totals more than 10 million participants. More information can be found on www.asfromania.ro.