According to the publicly available information, we did not identify any social trading or signaling platform authorized in Romania.
Traditional trading platforms have become increasingly popular in the last years. Such platforms are set up by brokers authorized in Romania or in other Member States of the European Union, based on the passporting provisions.
Trading platforms are online interfaces set up by brokering firms, whereby the clients are offered access to the financial markets. Taking into consideration that the activity of a trading platform involves the entity executing transactions at the order of their clients, such entities must be registered as investment firms in accordance with the Capital Markets Law, to the extent the financial products fall into the scope of the Capital Markets Law (which mirrors the provisions of MiFID I and MiFID II). With respect to the licensing requirements as an investment firm, please see section b) (Asset and Portfolio management)2.
Signal following and social trading:
Signal following and social trading: Trading Platforms that offer the possibility of signal following or of interaction between the users of the platform, whereby the client’s transactions are automatically executed based on the transactions performed by a third party chosen by the client, must be registered as investment firms. If the financial products traded on such platforms fall into the scope of the Capital Markets Law, such services are deemed to be portfolio management services, an activity regulated by the Capital Markets Law, for which an authorization is necessary. Even in the cases where no automatic orders are made and the client is requested to confirm every transaction, the activity may still fall under the scope of the Capital Markets Law, as an investment advice activity, if such investment advice is granted personally to the client.
We have not identified any public data with respect to the value of the market for the trading, social trading or signalling platforms.
The Romanian authorities have expressed no position with respect to the social trading or signaling platforms. If such platforms will seek an authorization in Romania, the provisions of the Capital Markets Law on the authorization of investment firms will be applicable.