|Sibex - Sibiu Stock Exchange|
|Type|| Commodities exchange |
|Founded||14 December 1994|
|Key people||Ovidiu Petru, CEO|
The Sibex-Sibiu Stock Exchange (Sibex S.A. in Romanian) was established as a private company in December 1994, with 33.24 million lei share capital, and was the first Romanian exchange authorized by Romanian National Securities Commission (RNSC). Being the pioneer of exchange listed derivatives in Romania, at the moment Sibex is the leader on this market segment. In July 1997, Sibex (known at that time as Sibiu Monetary Financial and Commodities Exchange) has become Romania's first derivatives exchange through the implementation of futures contracts.
Since 1994, Sibex’s national and international recognition has grown significantly as the developments of the company have contributed to growth and consolidation of its position within the Romanian and international capital markets.
As opposed to Bucharest Stock Exchange, Romania's largest stock market,SIBEX focuses on the derivative financial products. Sibex- Sibiu Stock Exchange is Romania's first and largest market of Futures and Options contracts at the moment; as a market/ system operator it administers the regulated derivatives market, regulated spot market and alternative trading system. On the derivatives market, Sibex is trading products with underlying Single Stock Futures, Futures Index, Commodities Futures and Currency futures.
The shares traded on the regulated spot market and on the alternative trading system of Sibex – Sibiu Stock Exchange are settled through Sibex Depository’s system.
Clearing and settlement of trades with financial derivatives on the regulated market administered by Sibex – Sibiu Stock Exchange is accomplished by Athens Exchange Clearing House, which is a Central Counterparty defined in accordance with applicable European regulations and authorized by its national authority, contractually designated by SIBEX as provider of clearing and settlement of financial derivatives trades for one or more regulated markets managed by SIBEX.
In 2005, Sibex was 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, Sibex had 74 shareholders of which 38 were financial investment companies. Sibex is run by a Board of Directors presided by Mr. Ovidiu Petru, CEO and General Manager.
In May 2006, Sibex discussed a merger with the larger Bucharest Stock Exchange, located in the capital of Romania.After a lengthy period of negotiations between sides, in October 2006, shareholders of the Bucharest Stock Exchange have rejected the proposal.
Failing to absorb the Sibiu Exchange, Bucharest Stock Exchange (BVB) has announced (June 2007) that it plans to open its own derivatives market in the near future.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 Sibex - Sibiu Stock Exchange will still be seen as Romania's one and only powerful derivative marketplace.
In January 2008, Sibiu Exchange became a member of the Association of Futures Markets International organization which gathers stock exchanges and other financial entities in Europe, Asia, South America and Africa.
January 2010, Sibiu Monetary Financial and Commodities Exchange (SMFCE) had officially launched the regulated spot market and its shares were admitted to trading on the regulated market administered by SMFCE.
March, 2011, Sibiu Exchange changed its name into Sibex - Sibiu Stock Exchange (Sibex). Also the new logo of the company was launched, representing 7 Transylvanian cities, signifying the meeting place for the investors who choose to turn their ideas into money. The new logo represents the local tradition of exchange and seriousness.
In 2013, Sibex signs the partnership agreement with OPCOM (Romanian Gas and Electricity Market Operator) for the development and launching of the power derivatives on Sibex financial derivatives regulated market.Sibex started to trade futures contract on US stocks, for the first time in Romania.
In February 2014, Sibex signed the partnership agreement with ATHEX Group incorporating: the Provision of clearing services from ATHEX Group’s Clearing House “ATHEXClear” under EMIR requirements, use of ATHEX Group multi-exchange trading platform (OASIS) by SIBEX along with ATHEX and Cyprus Stock Exchange, use of XNET services, thus offering access to global markets.
In December 2014, Sibex finalizes the project regarding the connection of the derivatives market to a Central Counterparty- ATHEXClear, as well as the migration of the derivatives market to a new trading system. This project is by far, the most important project related to the infrastructure of SIBEX-Sibiu Stock Exchange.Sibex activity is managed by a Board of Directors whose Chairman is Mr. Galatanu Ovidiu Dan. The executive management is run by Mr. Petru Ovidiu as Chief Executive Officer.
In 2017, Bucharest Stock Exchange (BVB) merged with Sibex,concluding with the dissolution of the latter.
In finance, a derivative is a contract that derives its value from the performance of an underlying entity. This underlying entity can be an asset, index, or interest rate, and is often simply called the "underlying". Derivatives can be used for a number of purposes, including insuring against price movements (hedging), increasing exposure to price movements for speculation, or getting access to otherwise hard-to-trade assets or markets. Some of the more common derivatives include forwards, futures, options, swaps, and variations of these such as synthetic collateralized debt obligations and credit default swaps. Most derivatives are traded over-the-counter (off-exchange) or on an exchange such as the Chicago Mercantile Exchange, while most insurance contracts have developed into a separate industry. In the United States, after the financial crisis of 2007–2009, there has been increased pressure to move derivatives to trade on exchanges.
A commodity market is a market that trades in the primary economic sector rather than manufactured products, such as cocoa, fruit and sugar. Hard commodities are mined, such as gold and oil. Futures contracts are the oldest way of investing in commodities. Futures are secured by physical assets. Commodity markets can include physical trading and derivatives trading using spot prices, forwards, futures, and options on futures. Farmers have used a simple form of derivative trading in the commodity market for centuries for price risk management.
In finance, a futures contract is a standardized legal agreement to buy or sell something at a predetermined price at a specified time in the future, between parties not known to each other. The asset transacted is usually a commodity or financial instrument. The predetermined price the parties agree to buy and sell the asset for is known as the forward price. The specified time in the future—which is when delivery and payment occur—is known as the delivery date. Because it is a function of an underlying asset, a futures contract is a derivative product.
A futures exchange or futures market is a central financial exchange where people can trade standardized futures contracts defined by the exchange. Futures contracts are derivatives contracts to buy or sell specific quantities of a commodity or financial instrument at a specified price with delivery set at a specified time in the future. Futures exchanges provide physical or electronic trading venues, details of standardized contracts, market and price data, clearing houses, exchange self-regulations, margin mechanisms, settlement procedures, delivery times, delivery procedures and other services to foster trading in futures contracts. Futures exchanges can be organized as non-profit member-owned organizations or as for-profit organizations. Futures exchanges can be integrated under the same brand name or organization with other types of exchanges, such as stock markets, options markets, and bond markets. Non-profit member-owned futures exchanges benefit their members, who earn commissions and revenue acting as brokers or market makers. For-profit futures exchanges earn most of their revenue from trading and clearing fees.
Over-the-counter (OTC) or off-exchange trading is done directly between two parties, without the supervision of an exchange. It is contrasted with exchange trading, which occurs via exchanges. A stock exchange has the benefit of facilitating liquidity, providing transparency, and maintaining the current market price. In an OTC trade, the price is not necessarily publicly disclosed.
In finance, a contract for difference (CFD) is a contract between two parties, typically described as "buyer" and "seller", stipulating that the buyer will pay to the seller the difference between the current value of an asset and its value at contract time.
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Options Clearing Corporation (OCC) is a United States clearing house based in Chicago. It specializes in equity derivatives clearing, providing central counterparty (CCP) clearing and settlement services to 16 exchanges. Started by Wayne Luthringshausen and carried on by Michael Cahill, trust in the company was built. Instruments include options, financial and commodity futures, security futures and securities lending transactions.
The Intercontinental Exchange (ICE) is an American Fortune 500 company formed in 2000 that operates global exchanges, clearing houses and provides mortgage technology, data and listing services. The company owns exchanges for financial and commodity markets, and operates 12 regulated exchanges and marketplaces. This includes ICE futures exchanges in the United States, Canada and Europe, the Liffe futures exchanges in Europe, the New York Stock Exchange, equity options exchanges and OTC energy, credit and equity markets.
CME Group Inc. is an American global markets company. It is the world's largest financial derivatives exchange, and trades in asset classes that include agricultural products, currencies, energy, interest rates, metals, and stock indexes. The company offers futures contracts and options on futures using its CME Globex trading platforms, fixed income trading via BrokerTec and foreign exchange trading on the EBS platform. In addition, it operates a central counterparty clearing provider, CME Clearing. With a range of pre- and post-trade products and services underpinning the entire lifecycle of a trade, CME Group also offers optimization and reconciliation services through TriOptima, and trade processing services through Traiana.
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LCH is a British clearing house group that serves major international exchanges, as well as a range of OTC markets. The LCH Group consists of two subsidiaries: LCH Ltd and LCH SA. Based on 2012 figures, LCH cleared approximately 50% of the global interest rate swap market, and was the second largest clearer of bonds and repos in the world, providing services across 13 government debt markets. In addition, LCH clears a broad range of asset classes including: commodities, securities, exchange traded derivatives, credit default swaps, energy contracts, freight derivatives, interest rate swaps, foreign exchange and Euro and Sterling denominated bonds and repos.
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ICE Clear Credit LLC, a Delaware limited liability company, is a Derivatives Clearing Organisation (DCO) previously known as ICE Trust US LLC which was launched in March 2009. ICE offers trade execution and processing for the credit derivatives markets through Creditex and clearing through ICE Trust™. ICE Clear Credit LLC operates as a central counterparty (CCP) and clearinghouse for credit default swap (CDS) transactions conducted by its participants. ICE Clear Credit LLC is a subsidiary of IntercontinentalExchange (ICE). ICE Clear Credit LLC is a wholly owned subsidiary of ICE US Holding Company LP which is "organized under the law of the Cayman Islands but has consented to the jurisdiction of United States courts and government agencies with respect to matters arising out of federal banking laws."
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