* Notes and the recommended steps of action
Andre Cappon, the chairman of the CBM, Group, Inc. from New York, has followed the event "The strategy for the relaunch of the stock market", organized by the BURSA newspaper on September 12th, and has sent us some comments.
CBM Group Inc. is a consulting firm from New York (www.thecbmgroup.com ) specialized in financial services.
In the 21 years since its founding, it has advised some 25 exchanges, clearinghouses, depositories and other "market infrastructure" institutions as well as many broker-dealers, banks and asset managers.
The CBM Group has operations in the two Americas, Europe and Asia and has experience in both emerging and developed markets.
In particular, it has worked in Brazil since the 1980s and in the Philippines since 2008: both are emerging markets that have made enormous progress over time and could suggest some "lessons learned" to Romania.
The Romanian stock market is still in the "frontier market" category and decisive steps are necessary to increase investor confidence, to attract more investors and to stimulate liquidity. There are lots of things to do, but the priorities and the general direction are clear. Romania can still learn from the experience of other emerging markets and accelerate its evolution.
* General observations: Where is Romania in the general evolution of the world's equity markets?
From our perspective, the financial systems follow a clear lifecycle: as the country's economy grows, in terms of the per capita GDP, so does the size and the complexity of the financial system.
In poor countries, for example, those in a post-conflict situation or the post-communist ones, the financial system is rudimentary. Usually, there is inflation and currency devaluation, and as a result, people keep their savings in assets with an intr