Electrica shares have a new market maker

Starting November 6, 2014, Electrica shares will benefit of the market making services from the intermediary Wood & Company. According to a press release, Wood & Company joined the BVB Market making Program since its launch, in January 2014. At present, Wood acts as market maker for 6 listed companies: BRD-Groupe Societe Generale, Fondul Proprietatea, Romgaz, OMV Petrom, Transgaz and Banca Transilvania. The BVB Market making Program has the purpose to develop the market making activity on the local market, to increase the liquidity and the quality of the market. Currently, 4 members are in the program: Banca Comerciala Romana, IFB Finwest, Raiffeisen Centrobank AG and Wood & Company. They ensure now the market making service for 10 companies listed on the regulated market. Starting October 1, it was extended the list of shares, to all the ones included in BET Plus index, for which a market maker can act on. Also starting October 1, the market makers were incentivized under the Revenue Sharing Scheme. Therefore, if a market maker holds this quality for at least 6 months and fulfilled its quoting obligations, than it is eligible for the incentives scheme. The level of the incentives is directly linked with the weight of the market maker’s activity in the total traded value per share in its main market.

For October, the traded value done by market makers on the shares they are registered on counted for 6,95 percent in the total traded value on the main market of the respective shares. This indicator is 49 percent higher than the one registered in the first half of 2014, of 4.66 percent. Compared with September 2014, the value traded by market makers in October was approx. 15 percent higher.“

The results of the program have shown that the program is working, and is working well. To develop this program, we envisage also other set of measures, like the creation of an adequate environment for short selling and a functional mechanism for the lending and borrowing. In this respect, we work together with the Financial Supervisory Authority, Central Depository and market participants, the efforts of all these institutions being necessary for making it successful” stated Ludwik Sobolewski, BVB CEO.