In a press release on 17 March 2008, Bucharest Stock Exchange (BSE) revealed that the National Securities Commission (CNVM) approved the changes on BSEs Code regarding the implementation of an auction session at the end of the trading session.
The BSE uses an auction algorithm for the opening of the tradingsession for its main market segments, grouped in three phases: order-placing phase, price determination phase and order-allocation phase.
Opening prices are determined according to the principle of executing as many orders as possible. After the opening, the instruments are traded continuously until the closure of the session. With the implementation of the closing auction procedure, the continuous trading of instruments will stop some minutes prior to the closing.
A new trading session status called Pre-closing will allow intermediaries to place orders and the closing prices will be determined with the final steps of the trading session, i.e. the price determination phase and the order-allocation phase – similar to the opening auction rules.
The new measure will be optional and will be applied on specific market segments or issuers upon BSEs General Managers decision.