12 Iunie 2009
NBR passes amendment to Central Depository code
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.
“NBR-passed amendments in securities lending is now pending for approval by the Romanian National Securities Commission in order to be effective. This is the procedure: first, any amendment brought to the code is approved by the Depository’s board, afterwards by NBR and finally by RNSC”, said Tanasoiu.
The securities lending will pave the way for the introduction of short selling options at the Bucharest Stock Exchange, brokers having the possibility to lend securities to clients.
Short selling is a trading practice by which the trader sells a financial instrument that the seller does not own at the time of sale, and which are usually borrowed from a broker or from another trader.
Short-sellers attempt to profit from an expected decline in the price of a financial instrument.
The securities lending will pave the way for the introduction of short selling options at the Bucharest Stock Exchange, brokers having the possibility to lend securities to clients.
Short selling is a trading practice by which the trader sells a financial instrument that the seller does not own at the time of sale, and which are usually borrowed from a broker or from another trader.
Short-sellers attempt to profit from an expected decline in the price of a financial instrument.