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E.ON, Deutsche Telekom and Bayer to start BVB trading by end-July

Trading in three German heavyweights - E. ON, Deutsche Telekom and Bayer - will kick off by the end of June on the Bucharest Stock Exchange alternative system (ATS), Stock Exchange general manager Valentin Ionescu on Wednesday told a seminar for the companies' presentation.

The only issuer currently traded in the ATS international section is Daimler-Mercedes. The three new entrants are brought to BVB by brokerage house Tradeville, which will act as liquidity provider (market maker) for these shares.

'We want Romania's retail investors to have access to the shares of large European companies. Some say trading directly in Frankfurt is cheaper. That's correct, it might be cheaper for an investment fund, but it's costlier for a retail investor. A broker who provides you access to a market like Frankfurt and London must make sure ensure that he has his costs covered. The minimum fees charged for an investment of several thousand euros is 40 - 50 euros. For a retail investor based in Romania it is cheaper to have Deutsche Telekom and Daimler traded in Bucharest than in Frankfurt. Of course, exposure will be in the domestic leu, not euros,' said the BVB director general.

According to Tradeville brokerage house general manager Mihaela Biciu, the listing of the three companies on the ATS is part of a partnership with BVB intended to boost liquidity of the Bucharest Stock Exchange by bringing to trades 'as many as possible high-quality issuers for Romanian investors to trade.'

The ATS system was authorized in 2010 by the National Securities Commission (CNVM) and has two components - a local one, dedicated to small and medium-sized companies and new businesses, and an international one.

The BVB general manager reiterated that bringing on the floor of the Bucharest stock market large European companies that trade on the European regulated markets is an alternative of the Bucharest Stock Exchange to what the Romanian economy has to offer. However, BVB still pursues the listing of state-controlled companies such as Hidroelectrica, Nuclearelectrica Romgaz or Romtelecom, as well as some local companies owned by entrepreneurs.

'Through ATS we wanted to get the shares of foreign companies that hold stakes in Romanian closed-end trading companies listed or traded on BVB; we also envisaged the shares of foreign companies operating in sectors which are not represented on the BVB, such as the telecom sector, or the shares issued by the leading companies in the region of Central and Eastern Europe,' said Valentin Ionescu.