The Board of the CSD has announced that it will launch a pilot project in order to facilitate listing on Bucharest Stock Exchange (BSE) of securities issued by international issuers.
The pilot project will allow dual or multi-listing of international securities; the settlement of the Romanian listing will be performed by the CSD. CSD was pushed into starting such a project by Erste Bank.
Last year, through the largest Romanian privatisation in history, Erste Bank bought a majority position in Romanian Commercial Bank, currently holding 69 percent of the largest Romanian bank. One of the conditions of privatisation deal was to have the securities listed on the exchange on a short time frame. However Erste Bank requested that both CSD and BSE implement several changes in their regulations in order to allow similar trading and settlement facilities as the ones existing in Vienna.
The CSD pilot project aims at offering enhanced facilities applicable only to international issuers planning to list their instruments on Bucharest Stock Exchange.
CSD mentioned that after one year, based on internal evaluations, implementation of nominee accounts will be considered for all market participants. CSD also announced that it will establish a connection with Clearstream and Citibank London.