“After the securities lending project is passed by RNSC, the Bucharest Stock Exchange will only decide on the type of securities the short-selling options will be enabled”, said Stere Farmache.

He added he was confident on the introduction of short sales at BSE, as the authorization of these trading practices by two institutions (NBR and Central Depository) exerts a certain pressure on the capital-market watchdog.

National Bank of Romania has passed amendments brought to Central Depository’s code in securities lending. The last stage in implementing the new instruments is the approval by Romanian National Securities Commission, said Adriana Tanasoiu, managing director of the Depository.

Short selling is the practice of selling a financial instrument that the seller does not own at the time of sale, and which are usually borrowed from a broker or another investor.