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The indirect participant, a new feature for BVB intermediaries

Bucharest Stock Exchange (BVB) has made it easier for intermediaries to operate on the stock market by allowing them to become indirect participants at Central Depositary.

“The move allows a BVB participant to choose how to perform post-trading operations. The new option related to the indirect participation at Central Depository will create the premises for an easier access to the BVB market for the potential new members, who will consider the membership of the BVB in order to trade on the Romanian capital market, while the post-trading services will be provided by the specialized institutions, such as the custodian agents,” a press release informs.

The feature related to the indirect participation at Central Depository enables a BVB participant to focus on the trading and to opt for a properly fit solution to its business model in the post-trading area. This participant will not be involved in the clearing-settlement and registry operations, the respective activities being carried out by another institution authorized by the Central Depository.

Therefore, the accessibility and the quality of the market operated by BVB will increase. “The Bucharest Stock Exchange is continuously involved in ensuring a flexible framework, which suits the business model of the BVB participants, in order to provide them the mobility they need to activate on the market and to perform efficiently and easily their operations, including those related to post-trading area,” said Ludwik Sobolewski, CEO of the BVB.

Supporting this framework and acting as the software provider for the Central Depositary, BVB built a modern infrastructure to ensure the operations would be carried out in an automatized, smooth and safe manner, benefiting from the inter-connection between BVB’s trading system and the related post-trading infrastructure, and from using a secure and effective risk-management procedure.



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