Bucharest Stock Exchange announces that starting 5 January 2015, new market segmentation will come into force, replacing the current I, II and III Tiers with the Premium and Standard Tiers. The analysis for issuers selected to be promoted to Premium tier is based on the following alternative criteria:
a) The shares are among 25 most liquid securities, as to liquidity coefficient;
b) The average free-float capitalization for the last 3 months exceeds EUR 40 million.
BVB will conduct periodic assessments on these requirements and will inform both the issuers who become eligible for Premium tier and the issuers that are already at this tier but that will not meet the criteria anymore and will give them a certain period of time in order to take the necessary steps to increase the liquidity of the shares issued so that they remain at the top tier.
In addition, new eligibility criteria regarding transparency and investors relations services will be enforced in January 2015 for BVB’s BET and BET-TR indices. The criteria refer to the following requirements: reporting in English, IFRS reporting, conference calls/analyst & investor meetings when quarterly results are released.
Impact on investors: According to the BVB, the new segmentation will contribute to better identification of equities traded on the BVB's and it also will give a better picture of the market.