EU integration will tighten competition on the capital market: on the one hand between the Stock Exchange and the other international financial markets and on the other hand between brokerages, in some cases for survival and in other for the money of the investors expected to approach the market more aggressively once Romania's country risk diminishes.

However, the effects of integration will not be felt at an institutional level sooner than one year after, say some of the main players on the market.

"Integration is not going to make an impact on the capital market at an institutional level during the first year,"considers Rares Nilas, manager with BT Securities, one of the most powerful brokerages on the market. He is also a member of the Stock Exchange Committee.

BSE manager Stere Farmache says that despite tougher competition between the Romanian and the other European stock markets, the markets joining the EU next year will still be able to make it on their own for a year or two. BSE manager also said it was too soon to talk about possible alliances with other stock exchanges as during the first few years after integration the Romanian stock exchange will have to focus on making use of its growth potential by its own.

According to the Bucharest Stock Exchange manager, the Romanian market will still rely for growth especially on the small companies to be listed during the following years, which will prefer floatation on the Romanian market than on another European markets. He also added a major Romanian company would only be included in a lower category on the world's big capital markets.

Competition with foreign players is not expected to make an impact on domestic brokerages, either, shortly after integration, even though starting next year foreign brokers will be able to trade on the Romanian market, as well.

According to Rar