Grigore Chiş, 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 Chiş 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. Chiş believes that to bear these costs many brokerages will be forced to merge, specifying he is in talks with several brokerages to this end.
Grigore Chiş, 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 t
