The Bucharest Stock Exchange’s (BVB) board of governors decided in its meeting, held on the 25th May, to operate certain changes to the BVB’s rulebook with regard to the short selling and buy on margin operations. This will be implemented following the Financial Supervisory Authority’s (ASF) approval of the changes to Regulation no. 32/2006 on financial investment services, as well as to Regulation no. 5/2010 on the use of global accounts, with regards to the securities lending and short selling.
The BVB updated rules on short selling and buying on margin are not yet disclosed, but the market operator has announced that it will soon introduce a series of educational projects in order to teach individual participants the possibilities that they could use once the short selling technique has been available to them.
Impact on investors: The Bucharest Stock Exchange will improve its regulatory framework for short selling, aiming to increase liquidity and to obtain a greater sophistication of trading.