Modifications to BVB Code come into force on Sept 7
The new Code of Bucharest Stock Exchange, BVB, modified by a decision of the National Security Commission, CNVM, on Aug 13, 2009, comes into force on Sept 7, 2009, reads an official release of BVB.
According to the said source, the main modifications of the document, aimed at getting aligned to the practice used by the European bourses, refers to the application of the method of the adjusted price, used as a price of reference for a symbol of the regulated market, at the implementation of a differentiated treatment, applied to the percentage limitation of the price of the orders introduced for a financial instrument, in the context of the ex-data related to a corporative event with impact on the price, or to the non-imposition of the variation limits for the financial instruments admitted to the International Category.
Also, in the decision of modification of the BVB Code 1259/13.08.2009, available on www.bvb.ro site, stipulated is also the need to apply a differentiated regime of the suspension of the financial instruments admitted for transactions and on another regulated market, from another member or non-member state of the EU, the removing of the provisions regarding the monitoring parameters of the level of the BET index (alert level, BET index), and the automated application of the procedure of extension of the variation limits for the financial instruments.
So, if the requirements are met for the rising extension, the following values are taken into account:
plus 25 percent (first extension), plus 35 percent (second extension) – plus 40 percent (third extension), compared with the reference price, and if the requirements for the extension at a decreasing pace of the variation limit are considered – the values taken into account are minus 25 percent, (first extension), minus 35 percent (second extension), minus 40 percent (third extension), compared with the reference price.
The list of the financial instruments, to which applied will be the procedure of extension of the limits, will be set by BVB, and made known subsequently.
The new code also modifies the transaction code for the share markets, from 100 to 500
BVB informed, in due time, the participants of the market regarding the practical aspects related to the coming into force of the modification of the decision and made known the related technical specifications as well as a test environment, starting on Aug 20, 2009, according to the current practice, reads the official release.