The FTSE Russell announced on the 29th of September that the capital market of Romania has been placed by the organization on the list of countries that have a substantial potential to be upgraded to the status of the Emerging Market in the short/medium term perspective. In the case of Romania, the upgrade will depend on the progress of the market liquidity and the presence of the largest companies with significant individual liquidity on the market.
Romania is currently rated as a frontier market but FTSE Russell will consider an upgrade to secondary emerging market category. According to the BVB, besides FTSE Russell, three other widely recognized international institutions - MCSI (USA), S&P Dow Jones (USA) and STOXX (Switzerland) - are currently providing ratings for the Romanian capital market.
Impact on investors: Progress in reforming the market infrastructure brings Romanian capital market on the FTSE Russell watch list for an upgrade as an Emerging Market.