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Bucharest Stock Exchange becomes benchmark administrator as per the EU's Benchmarks Regulation

The Bucharest Stock Exchange (BVB) becomes a benchmark administrator following its registration as such by the Financial Supervisory Authority (ASF), according to the new European relevant Benchmarks Regulation (BMR), BVB said in a release on Wednesday.

This new license is a reflection of the high standards, quality and integrity applied by BVB in developing and calculating benchmark indices.

"The license granted by ASF to the Bucharest Stock Exchange as administrator of the benchmark indices of the Romanian capital market is a recognition of BVB as a center of competence for these indices, given that the respective benchmarks already comply with European regulatory standards. This is the result of strong pre-existing governance and of the work of all members of the BVB Indices Commission, experts with a strong investment background. This recognition is also a commitment by BVB to continue to apply high standards in the management of indices so as to provide the users with quality, reliable indices, that should also be investable assets," said BVB CEO Adrian Tanase.

Chairman of the BVB Board of Directors Radu Hanga argues that the EU's BMR is the most important legislative reference for the benchmarks industry and represents a global standard of excellence in the provision of these services. "Benchmarks are a vital component of the investment ecosystem, as they provide a reference for the independent assessment of the performance of investment managers. At the same time, benchmarks underpin the creation of tradable investment products that provide investors with access to a wide and diverse range of opportunities and investment strategies," said Radu Hanga.

The EU's Benchmarks Regulation introduces a set of regulations applicable to benchmark administrators in order to ensure the accuracy and integrity of the indices used in the European Union. Thus, BMR requirements ensure the optimization and high quality of index management processes, the supervision of the calculation method, as well as the transparency and accessibility of data for users.

The Bucharest Stock Exchange calculates and manages eight stock market indices, of which the most representative is the BET - which reflects the evolution of the 17 most traded issuers listed on the regulated market. BVB also calculates two Total Return variants of the BET and BET-XT indices, which also include the dividends distributed by the companies included in the indices.