luni, 13 februarie 2012

Bucharest Stock Exchange - Long term strategic priorities

Here is the link with the presentation: http://www.bvb.ro/infocont/infocont12/BVB130212_en.pdf


At the press conference BSE board members and the president Lucian Anghel, outlined their long term view, which is:


  • developing the Stock Exchange into a regional hub
  • alternative to bank credits for companies
  • listing new companies
  • support for the Romanian government into privatization of different utilities companies
  • launching three major services until 2015 (they haven't said which are)


They have a great and ambitious plan and high targets, which is a good thing, but the devil is in the details, in the implementation of this high targets. I personally wish them good luck in their plans, and i believe they need to focus on the followings:


  • margin transactions - in this way from 10-12 Mil EURO per day volume they can reach, 100-120 Mil EURO per day
  • market makers for all their derivatives products (futures contracts or options) - when the markets starts falling to be easy to buy PUT options on the main indexes (BET and BET-FI) and in this way not to be forced to sell your shares creating an even bigger snowball. Definition of Put Option = an option contract giving the owner the right, but not the obligation to sell a specified amount of an underlying security at a specified price within a specified time. Read more at: http://www.investopedia.com/terms/p/putoption.asp#ixzz1mGHL0cFx
  • listing more companies from various industry sectors - IT was mentioned during press conference and I can add retail sales, various discretionary companies
  • improving the image of stock markets in general and BSE in particular

Lucian Anghel started outlining the time factor "a woman needs nine months to give birth to a child, but you can't have nine women to give birth to a child in one month" - and I think every market participants will give enough time to Lucian Anghel to implement his vision and stategy.

All the best everybody.


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