The Bucharest Stock Exchange has been reclassified from Frontier to Secondary Emerging market by FTSE Russell, three years after being added to the watch list.
“Following the September 2019 annual review, FTSE Russell confirms that: Romania, currently a Frontier market, to be reclassified as a Secondary Emerging market, effective from September 2020,” said FTSE Russell, a subsidiary of London Stock Exchange Group (LSEG).
FTSE Russell acknowledges Romania for meeting the requirements for attaining Secondary Emerging market status. The reclassification follows market improvements implemented by authorities in the respective countries, according to the company. Romania was added to the Watch List in September 2016 for possible reclassification to Secondary Emerging market status.
“This is extraordinary news for Romania’s economy. The ASF constantly supported the BVB and the capital market in Romania by lifting legislative barriers and cutting costs. I am sure that thanks to its new status, the Bucharest Stock Exchange will get a breath of fresh air and we’ll see new major investors and issuers,” said Leonardo Badea, the president of the Financial Supervisory Authority (ASF).
In September 2018, the FTSE Russell Country Classification Advisory Committee endorsed the following criterion rating changes:
- “Liquidity – Sufficient broad market liquidity to support sizeable global investment” was upgraded from “Not Met” to “Restricted,” following an improvement in broad market liquidity.
- “Off-exchange transactions permitted” – was upgraded from “Not Met” to “Restricted.”
The “Liquidity – Sufficient broad market liquidity to support sizable global investment” criterion is the single outstanding criterion required for attaining Secondary Emerging market status.
FTSE Russell acknowledged last year the efforts of the Bucharest Stock Exchange to bring IPOs to the market and to improve liquidity levels on the exchange.