We have an inefficient stock market, which has rules without any practical purpose, a market dominated by incompetent and starry-eyed brokers, considers Grigore Chiş, the general manager of SSIF Broker.
"If we don't bring the liquidity makers on the Bucharest Stock Exchange and the Sibiu Exchange, the latter two are sentenced to bankruptcy, or to what is happening to the Kishinev Exchange, where there is the pre-opening and the pre-closing state, and there is no trading state", he said.
In order to create liquidity, the Bucharest and Sibiu Exchange need to offer better terms than the other exchanges in the region, because they operate far riskier markets, said Grigore Chiş.
He said that at the present time, the only instruments on the BSE which have constant liquidity are the structured products based on foreign indexes, and that is because there are foreign specialist market-makers, which provide liquidity to the remaining market participants.
The head of SSIF Broker said that the most important discussion which needs to happen now, on an institutional and public level, concerns the specialist market-makers.
"Only after discussing the conditions which the Bucharest Stock Exchange and the Sibiu Stock Exchange are willing to grant to specialist market-makers in order to generate liquidity, we can talk about the rest of the commissions charged to normal brokerages", he added.
Grigore Chiş said that SSIF Broker is a direct-access member of the Vienna Stock Exchange, where it has the conditions needed to become a specialist market-maker and that, over there, the intermediaries receive a certain amount of money, each month, from the stock exchange to be a marker-maker, and a commission discount.
* The minimal trading cap needs to be set according to business rules
A minimal limit of trades needs to be set by the business ru
