Bucharest Stock Exchange

The Bucharest Stock Exchange (BVB) (Romanian: Bursa de Valori

Bucureti) is the stock exchange located in Bucharest, Romania. The total
market capitalization equals almost 30 billion ($39 billion) as of
September 2014. By September 2014, there were 83 companies listed on
BVB's regulated market. In 2013, the main index BET went up by 26.1%,
placing BVB as the 14th best performing stock exchange globally. Since
August 2013, Ludwik Sobolewski is the CEO of BVB.

History

Beginnings of the history of the Bucharest Stock Exchange can be traced

back to 1839, when the commodities-trade exchanges were established in
Bucharest. It was nevertheless only until December 1st, 1882 that the BVB
was officially inaugurated. One week later, the first exchange rates begun
being published in the Official Gazette. Throughout its existence, the
activities of the Bucharest Stock Exchange were affected by the socio-
political events of the time, such as the Romanian Uprising of 1907 or the
Balkan Wars that took place between 1912 and 1913.
The stock exchange was moreover closed during the First World War. When
BVB re-opened following the end of the war, it went through a period of 7
years of significant growth, followed by a period of 7 years of accelerated
loss. The activity of the Market for Effects, Actions and Exchange was
stopped in 1948, with the establishment of the Communist regime in
Romania and the beginning of the nationalization process. At that time,
shares issued by 93 companies and 77 fixed-income instruments (bond
type) were listed on the Bucharest Stock Exchange. The Bucharest Stock
Exchange reopened again in 1995, after almost 50 years since it was shut
down by the Communist regime. The first trading session was carried out
on November 20, 1995. On that date, 905 shares issued by 6 listed
companies were traded.
In 2005, BVB absorbed RASDAQ the over-the-counter electronic stock
market. On February 14th, 2008, Erste Bank listed on BVB and became the
first international company listed on the regulated market. Subsequently,
Bucharest Stock Exchange has experienced a continuous development and
is now established as the main stock exchange in Romania. In 2010,
Bucharest Stock Exchange listed on its own spot regulated market under
the symbol BVB.
In 2010, the Alternative trading system was launched by BVB for SMEs and
start-up companies wanting to raise capital from the market. On
December 15th, 2014 BVB has launched a new website, synchronized with
all the channels used by BVB, including social media pages as well as new
newsletter services.

Mission and Vision

Bucharest Stock Exchange (BVB) is currently building competitive capital
markets in the CEE region. Its mission is to transform the capital market in
one of the most active financing vehicles of the Romanian economy. BVB is
therefore aiming to shape one of the most comprehensive markets in
Central Eastern Europe by creating attractive opportunities both for
companies and investors in a dynamic and transparent environment. BVB
is working for removing the barriers which stand against the development
of the local market in order to facilitate investors access into the market,
increasing liquidity and attracting new companies for listing. All these, for
the market to be classified as an emerging market.

Activities

The Bucharest Stock Exchange is a market and system operator

authorized by the Financial Supervisory Authority (FSA) that manages a
Regulated market (RM) and an Alternative Trading System (ATS)
compatible with European standards. BVB also operates a market section
called RASDAQ. The following types of financial instruments are traded on
BVB: shares, rights, bonds, fund units, structured products and futures
contracts. BVB operating revenues are generated mainly from trading
activity, from membership and listing fees, as well as from data vending to
various users.

Regulated Market

The main market of BVB is a spot regulated market where financial

instruments such as shares and rights (issued by international and
Romanian entities), debt instruments (corporate, municipality and
government bonds) issued by Romanian entities and international
corporate bonds, UCITs (shares and fund units), structured products and
ETFs are traded.

In order to be listed on the regulated market, a company has to fulfill a

number of requirements prior to its listing on BVB:

Be a joint stock company (SA)

Have the value of market capitalization / shareholders equity of at
least 1 million euro
Have a free-float of at least 25% (shares not owned by the company,
nor by strategic investors)
Be active on the market for the last 3 years and have available
financial reports from that period.

RASDAQ Market

RASDAQ market was launched in 1996 and it accommodates shares and

rights issued by Romanian entities coming from the mass privatization
programme. In 1999, there were more than 5,500 Romanian companies
listed on RASDAQ. On September 30, 2014 the Romanian Parliament
decided that the RASDAQ market should be dissolved. The market still
remains operational however it is no longer possible to list on it.
Companies listed on RASDAQ can decide to promote to the regulated or
ATS given that they fulfill the necessary admission criteria.

Indices

BET

BET was the first index developed by BVB. It is the reference index for the
capital markets. BET follows the evolution of 10 most liquid companies
listed on BVB regulated market, excluding financial investment companies
(SIFs). It is an index weighted by free float capitalization. The maximum
weight of the symbol is 20%. The main selection criterion is companys
liquidity. Starting with 2015, additional requirements of transparency,
quality reporting and communication with investors will be imposed.

New York Stock Exchange

The New York Stock Exchange (NYSE), sometimes known as the "Big
Board",[4] is an American stock exchange located at 11 Wall Street, Lower
Manhattan, New York City, New York, United States. It is by far the world's
largest stock exchange by market capitalization of its listed companies at
US$25.3 trillion as of December 2014. Average daily trading value was
approximately US$169 billion in 2013.

The NYSE trading floor is located at 11 Wall Street and is composed of four
rooms used for the facilitation of trading. A fifth trading room, located at
30 Broad Street, was closed in February 2007. The main building, located
at 18 Broad Street, between the corners of Wall Street and Exchange
Place, was designated a National Historic Landmark in 1978, as was the 11
Wall Street building.

The NYSE is owned by Intercontinental Exchange, an American holding

company it also lists (NYSE: ICE). Previously, it was part of NYSE Euronext
(NYX), which was formed by the NYSE's 2007 merger with the fully
electronic stock exchange Euronext. NYSE and Euronext now operate as
divisions of Intercontinental Exchange.

Trading

The New York Stock Exchange (sometimes referred to as "the Big Board")
provides a means for buyers and sellers to trade shares of stock in
companies registered for public trading. The NYSE is open for trading
Monday through Friday from 9:30 am 4:00 pm ET, with the exception of
holidays declared by the Exchange in advance.

Merger, acquisition, and control

On February 15, 2011 NYSE and Deutsche Brse announced their merger
to form a new company, as yet unnamed, wherein Deutsche Brse
shareholders will have 60% ownership of the new entity, and NYSE
Euronext shareholders will have 40%.

On February 1, 2012, the European Commission blocked the merger of

NYSE with Deutsche Brse, after commissioner Joaquin Almunia stated
that the merger "would have led to a near-monopoly in European financial
derivatives worldwide". Instead, Deutsche Brse and NYSE will have to sell
either their Eurex derivatives or LIFFE shares in order to not create a
monopoly. On February 2, 2012, NYSE Euronext and Deutsche Brse
agreed to scrap the merger.

In April 2011, Intercontinental Exchange (ICE), an American futures

exchange, and NASDAQ OMX Group had together made an unsolicited
proposal to buy NYSE Euronext for approximately US$11 billion, a deal in
which NASDAQ would have taken control of the stock exchanges. NYSE
Euronext rejected this offer twice, but it was finally terminated after the
United States Department of Justice indicated their intention to block the
deal due to antitrust concerns.

In December 2012, it was announced that ICE had proposed to buy NYSE
Euronext in a stock swap with a valuation of $8 billion. NYSE Euronext
shareholders would receive either $33.12 in cash, or $11.27 in cash and
approximately a sixth of a share of ICE.

NASDAQ

The NASDAQ Stock Market, commonly known as the NASDAQ, is an

American stock exchange. In terms of market share and volume traded, it
is the largest stock exchange in the United States. The exchange platform
is owned by The NASDAQ OMX Group, which also owns the OMX stock
market network and several other US stock and options exchanges.

History

NASDAQ was founded in 1971 by the National Association of Securities

Dealers (NASD), which divested itself of NASDAQ in a series of sales in
2000 and 2001. NASDAQ is owned and operated by the The NASDAQ OMX
Group, the stocks of which were listed on its own stock exchange
beginning July 2, 2002.

When the NASDAQ began trading on February 8, 1971, it was the world's
first electronic stock market. At first, it was merely a quotation system and
did not provide a way to perform electronic trades. The NASDAQ helped
lower the spread (the difference between the bid price and the ask price of
the stock) but was unpopular among brokerages which made much of their
money on the spread.
Over the years, NASDAQ became more of a stock market by adding trade
and volume reporting and automated trading systems. NASDAQ was also
the first stock market in the United States to start trading online,
highlighting NASDAQ-traded companies (usually in technology) and closing
with the declaration that NASDAQ is "the stock market for the next
hundred years." Its main index is the NASDAQ Composite, which has been
published since its inception.
Until 1987, most trading occurred via the telephone. During the October
1987 stock market crash, however, market makers often did not answer
their phones. To remedy this, the Small Order Execution System (SOES)
was established. SOES provides an electronic method for dealers to enter
their trades. NASDAQ requires market makers to honor trades executed
using SOES.

In 1992,NASDAQ joined with the London Stock Exchange to form the first
intercontinental linkage of securities markets. The National Association of
Securities Dealers spun off NASDAQ in 2000 to form a publicly traded
company, the NASDAQ Stock Market, Inc.

In 2006, the status of NASDAQ was changed from a stock market to a

licensed national securities exchange.

To qualify for listing on the exchange, a company must be registered with

the United States Securities and Exchange Commission (SEC), must have
at least three market makers (financial firms that act as brokers or dealers
for specific securities) and must meet minimum requirements for assets,
capital, public shares, and shareholders.

Euronext

Euronext is a pan-European exchange based in Amsterdam, Brussels,

London, Lisbon and Paris. In addition to cash and derivatives markets, the
Euronext group provides listing market data, market solutions, custody
and settlement services. Its total product offering includes equities,
exchange-traded funds, warrants &certificates, bonds, derivatives,
commodities and indices.

As of the first quarter of 2014, Euronext was number one in continental

Europe with 1.300 issuers representing a 2.6tn market cap. Euronext
merged with NYSE Group, Inc. on April 4, 2007 to form NYSE Euronext
(NYX). On November 13, 2013 Intercontinental Exchange (NYSE: ICE),
completed acquisition of NYSE Euronext. In June 2014 Euronext completed
an initial public offering making it a standalone company again.

History

Creation of Euronext
Euronext was formed on 22 September 2000 following a merger of the
Amsterdam Exchanges, Brussels Stock Exchange, and Paris Bourse, in
order to take advantage of the harmonization of the European Union
financial markets. In December 2001, Euronext acquired the shares of the
London International Financial Futures and Options Exchange (LIFFE),
forming Euronext.LIFFE. In 2002 the group merged with the Portuguese
stock exchange Bolsa de Valores de Lisboa e Porto (BVLP), renamed
Euronext Lisbon. In 2001, Euronext became a listed company itself after
completing its Initial Public Offering.

Merger with NYSE

Due to apparent moves by NASDAQ to acquire the London Stock

Exchange, NYSE Group, owner of the New York Stock Exchange, offered 8
billion (US$10.2b) in cash and shares for Euronext on 22 May 2006,
outbidding a rival offer for the European Stock exchange operator from
Deutsche Brse, the German stock market. Contrary to statements that it
would not raise its bid, on 23 May 2006, Deutsche Brse unveiled a
merger bid for Euronext, valuing the pan-European exchange at 8.6
billion (US$11b), 600 million over NYSE Group's initial bid. Despite this,
NYSE Group and Euronext penned a merger agreement, subject to
shareholder vote and regulatory approval. The initial regulatory response
by SEC chief Christopher Cox (who was coordinating heavily with European
counterparts) was positive, with an expected approval by the end of 2007.
The new firm, tentatively dubbed NYSE Euronext, would be headquartered
in New York City, with European operations and its trading platform run out
of Paris. Then-NYSE CEO John Thain, who was to head NYSE Euronext,
intended to use the combination to form the world's first global stock
market, with continuous trading of stocks and derivatives over a 21-hour
time span. In addition, the two exchanges hoped to add Borsa Italiana (the
Milan stock exchange) into the grouping.

Deutsche Brse dropped out of the bidding for Euronext on 15 November

2006, removing the last major hurdle for the NYSE Euronext transaction. A
run-up of NYSE Group's stock price in late 2006 made the offering far more
attractive to Euronext's shareholders. On 19 December 2006, Euronext
shareholders approved the transaction with 98.2% of the vote. Only 1.8%
voted in favour of the Deutsche Brse offer. fr:Jean-Franois Thodore, the
Chief Executive Officer of Euronext, stated that they expected the
transaction to close within three or four months. Some of the regulatory
agencies with jurisdiction over the merger had already given approval.
NYSE Group shareholders gave their approval on 20 December 2006. The
merger was completed on 4 April 2007, forming NYSE Euronext.

Acquisition by Intercontinental Exchange

In December 2012 Intercontinental Exchange announced plans to acquire

NYSE Euronext, owner of Euronext, in an $8.2 billion takeover. The deal
was approved by the shareholders of NYSE Euronext and Intercontinental
Exchange on June 3, 2013. The European Commission approved the
acquisition on 24 June 2013 and on Aug. 15, 2013 the US regulator, SEC,
granted approval of the acquisition. European regulators and ministries of
Finance of the participating countries approved the deal and on November
13, 2013 the acquisition was completed. The fact that ICE intends to
pursue an initial public offering of Euronext in 2014 was always part of the
deal and a positive elements for European stakeholders. After a complex
series of operation within a very limited frame, Euronext became public in
June 2014.

Tokyo Stock Exchange

The Tokyo Stock Exchange (TSE) is a stock exchange located in Tokyo,

Japan. It is the third largest stock exchange in the world by aggregate
market capitalization of its listed companies. It had 2,292 listed companies
with a combined market capitalization of US$4.5 trillion as of November
2013.

In July 2012 a planned merger with the Osaka Securities Exchange was
approved by the Japan Fair Trade Commission. The resulting entity, the
Japan Exchange Group, was launched on January 1, 2013.

Structure

Stocks listed on the TSE are separated into the First Section for large
companies, the Second Section for mid-sized companies, and the Mothers
(Market of the high-growth and emerging stocks) section for high-growth
startup companies. As of October 31, 2010, there are 1,675 First Section
companies, 437 Second Section companies and 182 Mothers companies.

History

Prewar history

The Tokyo Stock Exchange was established on May 15, 1878, as the Tokyo
Kabushiki Torihikijo under the direction of then-Finance Minister Okuma
Shigenobu and capitalist advocate Shibusawa Eiichi. Trading began on June
1, 1878.

In 1943, the exchange was combined with ten other stock exchanges in
major Japanese cities to form a single Japanese Stock Exchange. The
combined exchange was shut down and reorganized shortly after the
bombing of Nagasaki.

Postwar history

The Tokyo Stock Exchange reopened under its current Japanese name on
May 16, 1949, pursuant to the new Securities Exchange Act.
The TSE runup from 1983 to 1990 was unprecedented, in 1990 it
accounted for over 60% of the world's stock market capitalization (by far
the world's largest) before falling precipitously in value and rankings
today, but still remains one of the 3 largest exchanges in the world by
market capitalization of listed shares.

The current TSE building was opened on May 23, 1988, replacing the
original TSE building from 1931, and the trading floor of the TSE was
closed on April 30, 1999, so that the exchange could switch to electronic
trading for all transactions. A new facility, called TSE Arrows, opened on
May 9, 2000. In 2010, the TSE launched its Arrowhead trading facility. [7]

In 2001, the TSE restructured itself as a stock company: before this time, it
was structured as an incorporated association with its members as
shareholders.

Alliances

The London Stock Exchange (LSE) and the TSE are developing jointly
traded products and share technology, marking the latest cross-border
deal among bourses as international competition heats up. The TSE is also
looking for some partners in Asia, and more specifically is seeking an
alliance with the Singapore Exchange (SGX), which is considered as
becoming a leading financial hub in the Asia-Pacific region.

London Stock Exchange

The London Stock Exchange is a stock exchange located in the City of

London in the United Kingdom. As of December 2011, the Exchange had a
market capitalization of US$3.266 trillion (short scale), making it the fifth-
largest stock exchange in the world by this measurement (and the second-
largest in Europe, after Euronext). The Exchange was founded in 1801 and
it is part of the London Stock Exchange Group.
The home to some of the most well-established, largest and recognised
companies in the world. Over 1,300 companies from 60 different countries
enjoy the balanced and globally respected standards of regulation and
corporate governance that the London Stock Exchange offers. Over the
past 10 years over 366 billion has been raised through new and further
issues by Main Market companies.

Statistics
There are currently 2,938 companies from over 60 countries listed on the
London Stock Exchange, of which 1151 are on AIM, 44 on the Professional
Securities Market and 10 on the Specialist Funds Market.
By June 2011, the AIM had 56 companies as per country of operations from
Africa, 41 from China, 26 from Latin America, 23 from Central & Eastern
Europe and 29 from India & Bangladesh, making it one of the worlds
leading growth markets. Since its launch in 1995, more than 67 billion
have been raised on AIM.
The total market value of these companies is 3.9 trillion.
The daily turnover traded in July 2011 was 4.4 billion (5.0 billion) and
the daily number of trades 611,941. The LSEs share of trading in the UK lit
order book trading was 62.2%.
The London Stock Exchange today offers trading in more emerging
markets exchange traded funds (ETFs) than any other exchange in the
world. There were a total of 158 emerging market ETFs listed on the
Exchange in May 2011 compared with 126 on the New York Stock
Exchange (NYSE Arca) and 93 on Deutsche Boerse.

Mergers and acquisitions

Borsa Italiana
On 23 June 2007, the London Stock Exchange announced that it had
agreed on the terms of a recommended offer to the shareholders of the
Borsa Italiana S.p.A. The merger of the two companies created a leading
diversified exchange group in Europe. The combined group was named the
London Stock Exchange Group, but still remained two separate legal and
regulatory entities. One of the long-term strategies of the joint company is
to expand Borsa Italianas efficient clearing services to other European
markets.

Proposed merger with TMX Group

On 9 February 2011, the London Stock Exchange Group announced they
had agreed to merge with the Toronto-based TMX Group, the owners of the
Toronto Stock Exchange, creating a combined entity with a market
capitalization of listed companies equal to 3.7 trillion. The London Stock
Exchange however announced it was terminating the merger with TMX on
29 June 2011 citing that "LSEG and TMX Group believe that the merger is
highly unlikely to achieve the required two-thirds majority approval at the
TMX Group shareholder meeting". Even though the LSE obtained the
necessary support from its shareholders, it failed to obtain the required
support from TMX's shareholders.

National Stock Exchange of India

The National Stock Exchange of India Limited (NSE) is the leading stock
exchange of India located at Mumbai. The National Stock Exchange of
India Limited was established in 1992 as the first demutualized electronic
exchange in the country. NSE was the first exchange in the country to
provide a modern, fully automated screen-based electronic trading system
which offered easy trading facility to the investors spread across the
length and breadth of the country.

NSE has a market capitalization of more than US$1.65 trillion making it

one of the worlds top twenty stock exchanges by market capitalization.
NSE's flagship index, the CNX Nifty, is used extensively by investors in
India and around the world as a barometer of the Indian capital markets.

NSE was setup by a set of leading Indian financial institutions at the

behest of the Government of India to bring transparency to the Indian
capital market. Based on the recommendations laid out by the
government committee, NSE has been established with a diversified
shareholding comprising domestic and global investors. The key domestic
investors include Life Insurance Corporation of India, State Bank of India,
IFCI Limited IDFC Limited and Stock Holding Corporation of India Limited.

NSE offers trading, clearing and settlement services in equity, equity

derivatives, debt and currency derivatives segments. It is the first
exchange in India to introduce electronic trading facility thus connecting
together the investor base of the entire country.

The exchange was incorporated in 1992 as a tax-paying company and was

recognized as a stock exchange in 1993 under the Securities Contracts
(Regulation) Act. NSE commenced operations in the Wholesale Debt
Market (WDM) segment in June 1994. The Capital market (Equities)
segment of the NSE commenced operations in November 1994, while
operations in the Derivatives segment commenced in June 2000.

Shanghai Stock Exchange

The Shanghai Stock Exchange (SSE), is a stock exchange that is based in

the city of Shanghai, China. It is one of the two stock exchanges operating
independently in the People's Republic of China, the other is the Shenzhen
Stock Exchange. Shanghai Stock Exchange is the world's 6th largest stock
market by market capitalization at US$2.3 trillion as of Dec 2011. Unlike
the Hong Kong Stock Exchange, the Shanghai Stock Exchange is still not
entirely open to foreign investors due to tight capital account controls
exercised by the Chinese mainland authorities.

The current exchange was re-established on November 26, 1990 and was
in operation on December 19 of the same year. It is a non-profit
organization directly administered by the China Securities Regulatory
Commission (CSRC).

The Shanghai Clearing House provides security for financial market

participants, and efficient clearing services development purposes, but
also conductive to international peers inter-agency communication and
cooperation. It provides central counterparty clearing of foreign currency
in the interbank market, including clearing, settlement, margin
management, collateral management, information services, consulting
services, and related management department under other business.

History

In 1920 and 1921, "Shanghai Securities & Commodities Exchange" and

"Shanghai Chinese Merchant Exchange" started operation respectively. An
amalgamation eventually took place in 1929, and the combined markets
operated thereafter as the "Shanghai Stock Exchange". Shipping,
insurance, and docks persisted to 1940 but were overshadowed by
industrial shares after the Treaty of Shimonoseki of 1895, which permitted
Japan, and by extension other nations which had treaties with China, to
establish factories in Shanghai and other treaty ports. Rubber plantations
became the staple of stock trading beginning in the second decade of the
20th century.

By the 1930s, Shanghai had emerged as the financial center of the Far
East, where both Chinese and foreign investors could trade stocks,
debentures, government bonds, and futures. The operation of Shanghai
Stock Exchange came to an abrupt halt after Japanese troops occupied the
Shanghai International Settlement on December 8, 1941. In 1946,
Shanghai Stock Exchange resumed its operations before closing again 3
years later in 1949, after the Communist revolution took place.

After the Cultural Revolution ended and Deng Xiaoping rose to power,
China was re-opened to the outside world in 1978. During the 1980s,
China's securities market evolved in tandem with the country's economic
reform and opening up and the development of socialist market economy.
On 26 November 1990, Shanghai Stock Exchange was re-established and
operations began a few weeks later on 19 December.

Structure
The securities listed at the SSE include the three main categories of
stocks, bonds, and funds. Bonds traded on SSE include treasury bonds (T-
bond), corporate bonds, and convertible corporate bonds. SSE T-bond
market is the most active of its kind in China. There are two types of
stocks being issued in the Shanghai Stock Exchange: "A" shares and "B"
shares. A shares are priced in the local yuan currency, while B shares are
quoted in U.S. dollars. Initially, trading in A shares are restricted to
domestic investors only while B shares are available to both domestic
(since 2001) and foreign investors. However, after reforms were
implemented in December 2002, foreign investors are now allowed (with
limitations) to trade in A shares under the Qualified Foreign Institutional
Investor (QFII) program which was officially launched in 2003. Currently, a
total of 98 foreign institutional investors have been approved to buy and
sell A shares under the QFII program. Quotas under the QFII program are
currently US$30 billion. There has been a plan to eventually merge the two
types of shares in the future.