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Bucharest Stock Exchange (BVB) introduces as of September 21, 2015, new tick size rules for all shares, rights and fund units traded on BVB. The changes regarding the new tick size envisage raising the trading price ranges compared to the current ones. This change settles the ground for a better concentration of orders by price levels, improved process of price discovery and a more efficient dynamics of the order book.
The principles of the new mechanism are:
- For more liquid instruments, tick size is lower
- For instruments with higher prices, the tick size is higher
“We will continue to set the conditions for creating a market which offers every day and several times during the trading day great opportunities for the investors or those who trade frequently and actively during the day, to earn money. Another mark of the Bucharest Stock Exchange is that we will be reacting fast to the circumstances and trends in this global market, aligning with them some of our trading mechanism", stated Ludwik Sobolewski, BVB CEO.
The new tick size rules are applied before the final values will enter into force at European level, on January 1, 2017, thus aligning the local capital market to international standards faster, with a direct effect on the quality of the market and its fair and orderly functioning.
Information regarding the new tick size are available under the Regulations section of the BVB’s website.
Changing tick size rules is part of a broader set of measures to improve the structure and liquidity of the market, among which the reduction of the trading fees, the introduction of a new phase of the market (Trading at last) and of the auction model for trading, as well as of the new types of orders and new trading facilities should be mentioned.
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Bucharest Stock Exchange runs markets for shares, bonds and other instruments, through regulated platforms and alternative systems, and provides a wide range of services to participants of financial markets. Bucharest Stock Exchange is a public company, listed on its own market since 2010. For more information refer to www.bvb.ro.
