[UPDATE4] Bucharest Stock Exchange, likely to halt trading session for more than one day

[UPDATE3]: BVB decides to maintain halt, brokers’ decision up next

BSE regulators, gathered in the emergency session, have decided to keep halt status of trading session throughout today.

At this point, brokers in the capital market are analyzing the problems, following to brief the media on their decision.

BSE decided to suspend trading at 11.08, as BET index had lost 9.25%, BET-C dropped 10.68 while BET Fi neared its bottom limit with 14.64% plunge. BET-XT registered a 11.05% decline and BET-NG slid 10.26%.

[UPDATE2]: Sibiu Commodity Exchange shut down trades with derivatives on stocks immediately after BSE made the same move at 11:08. However, derivatives on currency exchange rates are still open for trading, according to Darius Cipariu, deputy manager at Sibex.

“We suspended transactions with derivatives on stocks and on Sibiu stock market at 11:10, right after trading at BSE has been shut down. Practically, the rule is that both market should work, therefore, the trading will be resumed as soon as they are resumed on on-sight market,” said Darius Cipariu, deputy general manager at Sibex.

He added that transactions on currency derivatives have not been suspended, thus transactions are still carried out on RON/EUR pair.

[UPDATE1]: It is an unprecedented situation in stock exchange’s history and I believe that BSE’s decision to block transactions is well-grounded. Regulators have previously blocked trading before, in 2005, whereas the actual situation exceeds by far the events dated two years ago. BSE’s code provides for 30-minutes halt in transactions, however, I think it is likely to last longer,” Andreea Ciobanu, Head of Research at Intercapital Invest, stated for Wall-Street.

Bucharest Stock Exchange’s board have observed the trading’s code and made this decision to suspend transactions. The BSE’s council has gathered and talk on the issue. The decision is well-grounded considering the torrid latest sessions. It is not a first, the Bucharest trading was blocked few years ago,” Adrian Ceuca, deputy manager at SSIF Broker Cluj explained.

At around 11:00, all BSE indices registered over 10% declines, BET-FI being very closed to bottom limit stipulated in the regulation, -15%.

BMFMS shut down trading as well.

Translated and adapted by Camelia Oancea.