Sibiu Stock Exchange

From Wikipedia, the free encyclopedia

Sibiu Monetary Financial and Commodities Exchange
Bursa Monetar Financiarã şi de Mãrfuri Sibiu
Type	Commodity Exchange, Future Exchange
Location	Sibiu, Romania
Founded	14 December 1994
Key people	Teodor Ancuţa, CEO and General Manager
Indexes	SIBEX9 SIBEX18
Website	www.bmfms.ro

The Sibiu Monetary Financial and Commodities Exchange (Bursa Monetar Financiarã şi de Mãrfuri Sibiu or BMFMS in Romanian) is Romania's second largest financial market. It was founded in December 1994 in the historical city of Sibiu, Transylvania by 11 initial shareholders, its main activity was trading commodities on the spot market. In July 1997, BMFMS has become Romania's first derivatives exchange through the implementation of futures contracts.

As opposed to The Bucharest Stock Exchange, Romania's largest stock market, BMFMS focuses almost exclusively on the exchange of derivative financial products. The Sibiu Bourse is Romania's first and largest market of Futures and Options contracts to the day. Contracts are based on Romanian stock index, currencies, cross rates, interest rates, and (the newest addition - SIBEX Gold) gold price.

BMFMS operates its own safe clearing system, called the Romanian Clearing House (Casa Romana de Compensatie or CRC in Romanian), offering a secure market for hedgers and speculators. It practices Margin trading, with margins usually running in the range of 10-20%. Margin trading implies leverage and higher levels of risk, with amplified profits and losses compared to conventional stock trading.

The Sibiu Stock Exchange runs two composite indices, called SIBEX9[1] and SIBEX18[2].

Back in 2005, BMFMS has been evaluated by PricewaterhouseCoopers to 3.4 million EUR, but it has been subject to continuous growth and expansion ever since. In comparison, in the same time period, PwC has evaluated the Bucharest Stock Exchange at 16 million EUR. As of May 2006, The Sibiu Bourse had 74 shareholders of which 38 were financial investment companies. BMFMS is run by a Board of Directors presided by Mr. Teodor Ancuta, CEO and General Manager.

In May 2006, BMFMS discussed a merger with the larger Bucharest Stock Exchange, located in the capital of Romania.^[1] After a lengthy period of negotiations between sides, in October 2006, shareholders of the Bucharest Stock Exchange have rejected the proposal.^[2]

Failing to absorb the Sibiu Bourse, Bucharest Stock Exchange (BVB) has announced (June 2007) that it plans to open its own derivatives market in the near future^[3]. BVB has long announced plans to start its own derivative products based on its main composite indices: BET, BET-C, and BET-FI, (there is also a ROTX index, listed on the Vienna Stock Exchange). Eventually they might adopt currencies, stock index, and bonds as future underlying assets for their planned derivatives. Until then, The Sibiu Stock Exchange will still be seen as Romania's one and only powerful derivative marketplace.