One of BVB’s 15 top brokers closes down half of its agencies

This Estinvest move confirms a realigning process of the brokerage market, as BVB brokers closed some 400 financial investment agencies, and some 50 secondary seats, due to problems brought on by the international financial crisis. Estinvest representatives were not available for comment.

 

According to CNVM, the Focsani-based brokerage company had 36 agencies and branches, and over 100 brokers. The National Securities Commission also reported that five IFB Finwest brokers had their licenses revoked last week, and closed three agencies. Unicapital also gave up 6 brokers and two secondary branches.

 

Brokerage companies are faced with serious problems, as a result of BVB’s principal indexes lost over 70 percent at the beginning of the year, and transactions dropped by half. With declining turnover and rising costs, brokers are forced to restrict their activities to survive the financial crisis.

 

There are over 70 brokerage houses active on the market at this time, about half of which had transactions last month worth less than €1 million.