FSA approved the BVB's regulations for the new market in equities

On December 10, the Romanian Financial Supervision Authority (FSA) has approved the regulation concerning the alternative trading system of the Bucharest Stock Exchange (BVB).

AeRO, the new market of the Bucharest Stock Exchange for small and medium size entreprises, will start operating on the date which will be soon communicated by the Exchange.

The launch of AeRO will be a turnaround when it comes to the capital market as the source of financing for entrepreneurs.
MoRE on AeRO

Authorized Advisors

  • With the entry into force of the new regulation, there are new listing requirements applicable to the companies willing to be listed on AeRO. The most important change is brought by the introduction of the Authorized Advisor’s role.
  • Legal entities that are going to undertake the role of the Authorized Advisor will offer crucial support to the issuers before their debut and during the listing process, but also on reporting and transparency requirements after the issuer’s debut.
  • They will be also responsible for advising the companies with regard to any arising legal and administrative challenges, as well as will assist in the preparation of all the relevant information documentation requested by the market participants.
  • Authorized Advisors will be crucial in linking companies issuing shares with investors.


Benefits for companies

  • AeRO market will bring a number of benefits to the Romanian and foreign companies that are considering alternative ways of raising capital, but which are yet too small or too young to access the regulated market.
  • AeRO offers these companies a mechanism to access the necessary capital for development and growth purposes, varying from a couple of hundred thousand to several million RON.
  • The companies will moreover benefit from an increased visibility at a national and international level, amongst both business partners and customers.
  • By listing on AeRO, companies will be able to set a market value of their business, as well as gain easier access to the other financial resources.
  • By complying with the transparency requirements imposed by BVB, the companies will be able to also earn further trust from their customers, as well as attract new business partners.
  • Additionally, BVB will create a dedicated AeRO market index, which will consist of AeRO-listed companies and will thus provide enhanced visibility to companies listed thereon.


Listing criteria

  • Apart from the obligation to have an appointed Authorized Advisor, the companies willing to become listed on AeRO will need to attain an anticipated market capitalization of at least EUR 250.00, either through a private placement, an Initial Public Offer or based on the evaluation performed by the Authorized Advisor.
  • Moreover, the AeRO-listed company will be required to have a free-float of at least 10% or have 30 or more shareholders.
  • Finally the company, benefiting from the help of the Authorized Advisor, will have to issue an informational document, providing the line of company’s business and the latest financial statements.
  • In case of raising capital through private placement, prospectus will not be necessary, neither the FSA approval for the submitted documentation.


Benefits for investors

  • Investors will be offered a rare opportunity to discover companies with high growth potential, with promising projects at their early stages of development.
  • Nonetheless, as in other capital markets investments, there is no guarantee that expectations imposed on the listed companies will be met in an estimated period of time. Investors can use the AeRO market index as a benchmark for Romanian SMEs.

Apart from the new AeRO market section, the Alternative Trading System continues to consist of two more segments, namely one for international shares and another one for bonds. ATS remains a MTF market run by BVB, as per MIFID. BVB applies its own rules, so that the listing and trading is performed efficiently and securely while, at the same time, ensuring sufficient transparency for all the investors who decide to trade on it.