FTSE Russell confirms that Romania is on track to be included in the FTSE Russell Emerging Market indices in September 2020. Index eligibility for the September 2020 FTSE Global All Cap annual review will be based on data as of the close on 30 June 2020.

The FTSE Russell annual review will analyze the individual liquidity of the monitored companies (8 Romanian listed companies which meet FTSE Russell size criteria) over the July 2019 – June 2020 timeframe. For a company to meet the liquidity criteria, its monthly median liquidity test must be above 0.05% for at least 10 out of 12 months. The monthly median liquidity test, based on FTSE Russell methodology, is calculated for each company as the monthly median of daily traded volumes / free float number of shares.

To this extent, FTSE Russell issued the following guidance regarding Romania’s upgrade: “Further to the September 2019 FTSE Equity Country Classification Annual Review, Romania will be reclassified from Frontier to Secondary Emerging market status with effect from September 2020. However, Romanian securities will only be added to the FTSE Global Equity Index Series (GEIS) if a minimum of two securities meet the FTSE Global All Cap Index eligibility requirements based on data as at 30 June 2020.”

Based on Bucharest Stock Exchange (BVB) calculations and the current values of considered free float number of shares, at the end of March 2020, there are two Romanian companies that are on track to be included in the FTSE Emerging Market indices, namely Banca Transilvania and Nuclearelectrica and they should continue to meet the liquidity criteria in the next three months.