High commissions levied by market watchdog scares off players to invest on the bourse

The high commissions levied by the National Securities Commission (CNVM) discourage local players to invest on the Romanian capital market, according to deputy Gratiela Iordache, a member of the Finance Commission of the lower house.

Reducing commissions is the solution to hike investors’ appetite for the capital market, she said.

"Investors distrust the Romanian capital market which is one of the most expensive regarding commissions," Iordache said, adding that players should be stimulated to dole out money on the bourse with listing state titles and cutting commissions.

CNVM reduced commissions last year while the Bucharest Stock Exchange cut them 10 percent on May 19 for public offerings and 5 percent for trading when the average liquidity on the market reaches 16 million euros.

The decision to cut commissions came after estimates that the daily average value of trading on the markets managed by the Bucharest Stock Exchange will reach 14 million euros.

The bourse announced it will not levy buying commissions on initial and secondary public offerings this year.

NewsIn