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Bucharest Stock Exchange
Stock exchange in Romania From Wikipedia, the free encyclopedia
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The Bucharest Stock Exchange (Romanian: Bursa de Valori București, BVB) is the main stock exchange in Romania and the largest in Southeast Europe by trading volume and market capitalization.[2] As of 2025[update], the BVB had 582 listed securities, including stocks, bonds, and investment funds.[1]
Founded on December 1, 1882, by royal decree under King Carol I, the exchange initially operated as a stock and commodities market until its closure in 1948 during the communist era. It was re-established as a public non-profit institution on April 21, 1995, with the first trades occurring on November 20 of that year, and transitioned to a joint-stock company in 2005 before listing its own shares on the regulated market in 2010.[3] As of 2025, the BVB is majority-owned by institutional investors, including the European Bank for Reconstruction and Development, foreign funds, and local entities such as pension funds and brokers.[4]
As of 2025, the exchange lists 390 companies across various sectors, including energy, banking, and technology, with a domestic market capitalization reaching approximately $114 billion, reflecting steady growth amid Romania's European Union membership and economic expansion.[5] The BVB's flagship BET index, comprising the top 20 liquid stocks by free-float market capitalization, tracks overall market performance and stood at around 23,102 points in early November 2025, underscoring resilience despite regional volatility.[6]
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History
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Founding and Early Operations
The origins of the Bucharest Stock Exchange trace back to informal commodities trading activities that began in 1839, evolving into a formalized institution amid Romania's economic modernization in the late 19th century.[7] The exchange was officially established as Romania's first stock market through a Royal assent issued in 1881 by King Carol I, with its inaugural trading session commencing on December 1, 1882, in the building of the Bucharest Chamber of Commerce Palace.[8] Initially operating as a mixed exchange for both commodities and securities, it served as a key platform for capital mobilization in a rapidly industrializing economy.[9]
In its early years, the exchange focused primarily on trading government bonds, municipal bonds, and shares in banks, industrial enterprises, railways, and oil companies, reflecting the period's emphasis on infrastructure and resource development.[8] Private corporate bonds also gained prominence, accounting for a significant portion of annual turnover up to one-third by the early 1900s driven by urban housing and agricultural financing needs.[8] The market's growth was supported by increasing liquidity and participation from local brokers, though operations remained modest compared to major European stock exchanges.
A pivotal development occurred in 1904 when the Ministry of Finance introduced new regulations, shifting the exchange from a monopolistic French-inspired model to a more liberal Austrian-style framework that permitted direct transactions among members of the Stock Exchange Corporation.[8] This reform enhanced operational flexibility and contributed to pre-World War I expansion, with notable economic booms in sectors like oil extraction and railway construction boosting trading volumes.[8] By 1914, the exchange had solidified its role in Romania's financial landscape, handling a diverse array of instruments that supported industrial and infrastructural projects.[10]
Closure during Communist Era
The Bucharest Stock Exchange continued operations during World War II, despite Romania's alliance with the Axis powers until 1944 and the subsequent Soviet occupation, which introduced economic strains but did not halt trading activities.[11] However, the postwar communist takeover fundamentally transformed Romania's economy, leading to the exchange's dissolution as part of broader nationalization efforts.[10]
In 1948, following the consolidation of communist power, the government enacted Law No. 119 on June 11, which nationalized over 1,060 industrial, banking, mining, insurance, and transportation enterprises, effectively abolishing private ownership in key sectors including financial institutions.[12] This legislation directly resulted in the closure of the Bucharest Stock Exchange, as securities trading became incompatible with the emerging socialist framework that viewed capital markets as remnants of capitalism. [3] The exchange's operations ceased entirely by mid-1948, ending nearly seven decades of formal activity.
The imposition of a centrally planned economy under communist rule from 1948 to 1989 eliminated private trading mechanisms, with the state assuming total control over production, distribution, and financial flows through entities like the State Planning Committee.[11] This system prioritized collective ownership and suppressed market-based instruments such as stocks and bonds, redirecting resources toward heavy industry and collectivized agriculture while prohibiting speculative or private investment activities. As a result, Romania's capital markets vanished, contributing to economic isolation and inefficiencies that persisted until the regime's collapse.[11]
Amid the official suppression of markets, informal trading networks within Romania's second economy provided limited avenues for exchange of goods, currencies, and services, sustaining some entrepreneurial activity outside state oversight.[13] The 1989 revolution that overthrew the communist government opened the door to market-oriented reforms, including privatization initiatives and regulatory changes in the early 1990s that laid the groundwork for restoring formal capital markets.
Reopening and Modern Expansion
The Bucharest Stock Exchange (BVB) reopened on November 20, 1995, following the enactment of Law No. 52/1994 on securities and the capital market, which provided the legal framework for reestablishing organized trading after decades of closure under the communist regime.[13] The inaugural trading session saw 45 transactions executed across six initial listings, primarily involving shares of state-owned enterprises undergoing early privatization efforts. However, the exchange faced significant challenges in its early years, including low liquidity due to limited investor participation, underdeveloped regulatory infrastructure, and a nascent market ecosystem that struggled to attract substantial trading volumes.[14]
A pivotal step in the exchange's modernization came in 2005 with the absorption of RASDAQ, Romania's over-the-counter electronic trading platform, which had operated since 1996 as a parallel market for smaller issuers.[15] This merger, finalized on November 30, 2005, consolidated trading activities under a single entity, expanded the BVB's issuer base to over 900 companies, and introduced new market segments to enhance efficiency and accessibility.[15] Building on this integration, the BVB achieved a key milestone in 2010 by self-listing its shares on its own regulated market under the ticker symbol BVB, enabling public ownership and aligning its governance with international standards for transparency and accountability.[16] In 2015, the exchange launched the AeRO market segment on February 25, specifically tailored for small and medium-sized enterprises (SMEs) and startups seeking alternative financing without the stringent requirements of the main market, facilitating easier access to capital for growth-oriented firms.[17]
The BVB's expansion gained international recognition in September 2020 when FTSE Russell upgraded Romania's market status to Secondary Emerging Market within its Global Equity Index Series, reflecting improvements in market accessibility, regulatory framework, and liquidity that positioned the exchange for greater global investor interest.[18] Further advancing its technological and collaborative footprint, the BVB joined 14 other European exchanges in August 2023 to form EuroCTP B.V., a joint venture aimed at bidding to provide a consolidated tape for equities and exchange-traded funds across the European Union, enhancing post-trade data transparency and standardization.[19] These developments contributed to substantial market growth, with capitalization rising from approximately $1.5 billion in 2000 to $64.9 billion by the end of 2023, including a 49.2% year-over-year increase in the latter year driven by strong equity performance and new listings.[20] In 2024, the market capitalization further increased by approximately 18% to EUR 70 billion by year-end, supported by record trading volumes.[21]
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Activities
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The Bucharest Stock Exchange is a market and system operator authorized by the Financial Supervisory Authority (FSA) that manages a Regulated market (RM) and an Alternative Trading System (ATS) compatible with European standards. BVB also operates a market section called RASDAQ. The following types of financial instruments are traded on BVB: shares, rights, bonds, fund units, structured products and futures contracts. BVB operating revenues are generated mainly from trading activity, from membership and listing fees, as well as from data vending to various users.
Regulated Market
The main market of BVB is a spot regulated market where financial instruments such as shares and rights (issued by international and Romanian entities), debt instruments (corporate, municipality and government bonds) issued by Romanian entities and international corporate bonds, UCITs (shares and fund units), structured products and ETFs are traded.
In order to be listed on the regulated market, a company has to fulfill a number of requirements prior to its listing on BVB:
- Be a joint stock company (SA)
- Have the value of market capitalization / shareholders’ equity of at least 1 million euro
- Have a free-float of at least 25% (shares not owned by the company, nor by strategic investors)
- Be active on the market for the last 3 years and have available financial reports from that period.
AeRO Market
AeRO market is the equities segment of the Alternative trading system (ATS). AeRO market was designed from the need of providing a financing alternative for entrepreneurs, and is the equity segment of the alternative trading system managed by the Bucharest Stock Exchange (BVB). It is a market segment designed for listing of early stage companies, start-ups and SMEs, to finance their projects, growth stories, increase their visibility and contribute to the development of the business environment. Based on the BVB alternative trading system existing since 2010, the AeRO market, under its redesigned and reconstructed concept, was launched on February 25, 2015.
Key features of AeRO market:
- It addresses all types of companies, regardless of their size or time since establishment,
- It was created for both shares and bonds, as well as for other financial instruments that do not comply with the requirements of the regulated market,
- The listing features are simplified, as there is no need for a prospectus to be admitted to trading, but only for a corporate presentation,
- The reporting requirements are low as compared to the regulated market,
- A company may prepare to get transferred on the regulated market by gradually increasing the free float, the cash.
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Indices
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Bucharest Stock Exchange has 8 local indices and one international indices:
BET
BET was the first index developed by BVB. It is the reference index for the capital markets. BET follows the evolution of the 15 most liquid companies listed on BVB regulated market, excluding financial investment companies (SIFs). It is an index weighted by free float capitalization. The maximum weight of the symbol is 20%. The main selection criterion is company’s liquidity. Starting with 2015, additional requirements of transparency, quality reporting and communication with investors was imposed. BET index structure:
Updated 13 November 2018
BET-TR
BET-TR is the first total return index launched by BVB. It is based on the structure of market reference index BET. BET-TR reflects the evolution of its component shares and dividend yields offered by them. Index is composed of the 13 most traded companies on BVB, excluding SIFs. Similarly to BET, the main selection criterion for BET-TR is the liquidity of the company. Starting with 2015, additional requirement of transparency, quality reporting and communication with investors will be imposed. BET-TR is an index weighted by free float capitalization. The maximum weight of the symbol is 20%.
BET-FI
BET-FI is the first sectoral index launched by BVB. It reflects the evolution of financial investment companies (SIFs) and of other similar institutions. It is an index weighted by free float capitalization. The maximum weight of the symbol is 30%.
BET-XT
BET-XT reflects the price evolution of 25 most liquid companies listed on BVB, including investment firms (SIFs). It is an index weighted by free float capitalization. The maximum weight of the symbol is 15%.
BET-NG
BET-NG is a sectoral index that reflects the evolution of companies listed on BVB regulated market that operate primarily in energy and utilities field. It is an index weighted by free float capitalization. The maximum weight of the symbol is 30%. Number of component shares is variable.
BET-BK
Index BET-BK was created as a benchmark for the fund managers and other institutional investors. The calculation methodology reflects on legal requirements as well as limits of the investment funds. It is an index weighted by free float capitalization. Number of component shares is equal 25.
BET Plus
BET Plus reflects the evolution of Romanian companies listed on BVB regulated market that meet the minimum selection criterion with regards to liquidity and free float. Financial investment companies are excluded from this index. It is an index weighted by free float capitalization. The maximum weight of the symbol is 20%. Number of component shares is variable.
BET-XT-TR
BET-XT-TR is the total return version of BET-XT index, which includes the 25 most traded Romanian companies listed at BVB. BET-XT-TR tracks the price changes of its constituent companies and is adjusted to also reflect the dividends paid by them.
ROTX
ROTX is an index developed by BVB together with the Vienna Stock Exchange (Wiener Börse). It reflects, in real-time, the movement of the ‘blue chip’ shares traded on the Bucharest Stock Exchange. ROTX is an index weighted by free float capitalization, calculated in RON, EUR and USD and disseminated in real time by the Vienna Stock Exchange. ROTX is a tradable index and can be used as an underlying for derivatives and structured products.
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Companies Listed
Some of Romania’s highest-profile companies are being traded on BVB. The largest companies by market capitalization as of November 2017 are: OMV Petrom S.A., S.N.G.N. Romgaz S.A., Banca Transilvania, BRD – Groupe Societe Generale S.A, Fondul Proprietatea, S.N.T.G.N. Transgaz S.A. and Societatea Energetica Electrica S.A.
BVB own shares
Since 2010, Bucharest Stock Exchange is listed on its own market, with a symbol BVB. Bucharest Stock Exchange has a single class of common shares and a capital of 76,741,980 lei divided in 7,674,198 shares with a nominal value of RON 10 per share. All the shares are fully paid. The free float of BVB shares is equal 100%. In accordance with the provisions of the Government Emergency Ordinance no. 90/2014 amending and supplementing the Law no. 297/2004 regarding the capital market, a shareholder of a market operator cannot own directly or indirectly more than 20% of the total voting rights. As of November 30, 2014, the Romanian legal entities constituted the largest group of the BVB shareholders (69.19%), followed by foreign legal entities (15.47%), Romanian private individuals (14.79%), and foreign private individuals (0.54%). In November 2014, European Bank for Reconstruction and Development has acquired 4.99% stake in the Bucharest Stock Exchange.[24]
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Legal Framework
The legal framework for exchange operations in Romania is provided by the following legal acts:
- The Capital Market Law no. 297/2004[25]
- CNVM Regulation no. 1/2006 on Issuers and Operations with Securities[26]
- CNVM Regulation no. 2/2006 on Regulated Markets and Alternative Trading System[27]
Additionally, the BVB is governed by Constitutive Act of the Commercial Company Bursa de Valori Bucuresti S.A.[28] and the Regulation on the Organization and Functioning of the Bursa de Valori Bucuresti[29] whereas the respective markets are governed by the Bucharest Stock Exchange Rulebook for Market Operators[30] and ATS Rulebook for System Operators.[31]
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Information services
BVB supplies its participant with a wide range of tools that provide real time prices and trading data. Some of the most popular products provided by BVB are:
- ArenaXT – provides investors with access to the live market data that professional traders rely on. It offers investors real-time, in-depth market information, delivered in a cost-effective and user-friendly way.
- ON LINE Terminal – provides online trading information based on best prices.
- ON LINE Quotes – provides online trading information per symbol.
Currently BVB provides real time data to, inter alia: Thomson Reuters, Bloomberg L.P., Standard & Poor’s and many others.[32]
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Opening times
Bucharest Stock Exchange trades daily from Monday to Friday. The hours differ depending on the market and the instrument type.[33] The regulated market (REGS) has pre-market sessions from 9:30 – 9:45 AM Eastern European Time (EET), normal trading sessions from 9:45 - 17:55, pre-close session from 17:55 – 18:00, trading at last session from 18:00 until 18:10 PM and closed session at 18:10 PM. The Stock Exchange does not trade on Saturdays and Sundays as well as Romanian national holiday days, declared by BVB in advance.
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See also
References
External links
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