Investments services and activities

a) reception and transmission of orders in relation to one or more financial instruments;
b) execution of orders on behalf of clients;
c) dealing on own account;
d) portfolio management;
e) Investment advice;
f) underwriting of financial instruments and/or placing of financial instruments on a firm commitment basis;
g) placing of financial instruments without a firm commitment basis;
h) alternative trading system management.

a) safekeeping and managing financial instruments on the account of clients, including custody and related services, such as managing funds or guarantees;
b) granting credits or loans to investors to allow them to carry out a transaction in one or more financial instruments, if the company granting the credit or loan is involved in the transaction;
c) advice given to entities regarding the capital structure, the industrial strategy and related issues, as well as advice and services regarding the mergers and acquisitions of entities;
d) currency exchange services in connection with the investment services supplied;
e) investment research and financial analysis or other forms of general recommendation relating to transactions in financial instruments;
f) services related to the underwriting on a firm commitment basis;
g) investment services and activities, such as the related services referred to in Points 1 and 2 related to the underlying shares of the derivative instruments referred to in Point 141 Letters e), f), g) and j), if they are related to the provisions regarding the investment and related services.

1. Securities
2. Instruments of the money market
3. Units of collective investment undertakings
4. Options, futures, swaps, forward rate agreements and any other derivative contracts relating to securities, currencies, interest or profitability rates, emission allowances or other derivatives, financial indices or financial ratios may be settled by physical delivery or in cash
5. Options contracts, futures contracts, swap contracts, forward contracts and any other derivative contracts relating to commodities to be settled in cash or may be settled in cash at the request of one of the parties other than in the case of a breach of obligations; or of another incident leading to termination
6. Options contracts, futurescontracts, swap contracts, forward contracts and any other derivative contract relating to commodities that may be settled by physical delivery, provided that they are traded on a regulated market, SMT or a trading venue, except for products wholesale energy traded on a SOT to be settled by physical delivery
7. Options contracts, futurescontracts, swap contracts, forward contracts and any other derivative contracts relating to commodities which may be settled by physical delivery, not otherwise provided in paragraph 6 of this Section and not having commercial purposes, which presents the characteristics of other derivative financial instruments
8. Derivatives that serve to transfer credit risk
9. Financial Differences
10. Options, futures, swap contracts, forward rate agreements and any other derivative contracts relating to climatic variables, freight rates or inflation rates or other official economic statistics to be settled in cash or settled in cash at the request of one of the parties other than in the case of a breach of obligations or other incident leading to termination, as well as any other derivative contracts relating to assets, rights, obligations, indices and indicators not otherwise provided for in this section, which presents the characteristics of other financial derivatives, taking into account whether, in particular, they are traded on a regulated market, a CMO or a SMT
11. Emission Certificates consisting of any units recognized as complying with the requirements of Government Decision no. 780/2006 on establishing the scheme for greenhouse gas emission allowance trading, as subsequently amended and supplemented, and Government Emergency Ordinance no. 115/2011 on establishing the institutional framework and authorizing the Government, through the Ministry of Public Finance, to auction the greenhouse gas emission allowances allocated to Romania at the level of the European Union, approved by Law no. 163/2012, as subsequently amended and supplemented.

Bucharest stock exchange (BSE)

Bucharest Stock Exchange is authorized as market operator by Financial Supervisory Authority former National Securities Commission.
On the spot market of the BSE you can trade shares, preference rights, units of mutual funds , government bonds, corporate bonds, municipal bonds, structured products, issued by both Romanian and foreign entities.
The Bucharest Stock Exchange also trades structured products, such as certificates, warrants and other structured products.
BSE has organized an Alternative Trading System: ATS -CAN, where can be traded the financial instruments mentioned above as well as the financial instruments.
In order to protect investors, companies listed on the Stock Exchange are required to regularly report any event that takes place in the company (General Assemblies, mergers, acquisitions, sales, leasing or mortgaging of assets, changing members of company management, lending or loans, significant changes in the ownership structure, insolvency, etc).

Investing in financial instruments

Investing in securities is not without risks and potential investors together with their investment services agent must take into account issues such as:

  • Knowledge and experience in financial investments specific type of financial instrument or investment service;
  • Financial condition;
  • Investment objectives and the amount of initial investment together with the expected duration of the investment;
  • The purpose of the investment;

Risks can be managed by:

 • Diversification of portfolio securities;
• Investing in companies listed or traded on the stock market , which have strong economic fundamentals , in terms of fundamental analysis ;
• Investing in issuers that have a high liquidity ;
• Investing in companies that comply with the principles of corporate governance and are transparent in relation to their investors;
• Investment in financial instruments aimed at replicating an index and allowing portfolio diversification in terms of low costs .

Investment risk in financial Instruments

There are multiple risks associated with financial investments , among them we include: market risk , timing risk, political and country risk, regulatory risk, liquidity risk, foreign exchange risk, interest rate risk, volatility risk, concentration risk (diversification) operational risk, etc.

Market risk arising from adverse changes in the price or value of the asset traded / held as investment portfolio as a result of objective factors (economic performance) and subjective (optimism/pessimism of investors ).

Risk arising from timing comes from choosing an inopportune moment to invest.

Political and country risk results from the degree of economic and political stability of the country, its commercial  policies, traditions and ethics, national security, military conflicts or social potential. It may also reflect the negative impact of decisions taken by national/regional authorities of: taxes, capital restrictions, quotas, nationalization, expropriation, etc.

Regulatory risk is the probability of the legislative change, its impact on the value of various securities, cost of compliance with certain procedures, etc.

Liquidity risk reflects the inability of markets to convert into cash certain assets in the desired amount at the desired time.

Exchange rate risk has a strong bearing on externally diversified portfolios when converting  into national currency dividends, interest or positive differences obtained from abroad .

Interest rate risk arises due to the fact that interest rate changes can have an adverse impact on the market price of certain securities.

Volatility refers to a  feature securities to have important fluctuations in price over  a short period of time. In other words, this indicator shows “how suddenly” the price changes from one period to another. A higher volatility correlates with high  oscillations (price increases and/or decreases ). A low volatility correlates with low oscillations and the daily, monthly or annual return are not far from the average returns (hence lower risk).

Concentration risk (diversification) is associated with owning a single security or financial instruments from a single sector.

Operational risk arises from human error or fraudulent behavior leading to the disappearance of documents/important data.