FEDERATION OF EURO-ASIAN STOCK EXCHANGES YEARBOOK 2002/2003 FEDERATION OF EURO-ASIAN STOCK EXCHANGES YEARBOOK 2002/2003 FEDERATION OF EURO-ASIAN STOCK EXCHANGES > YEARBOOK 2002/2003 > PAGE 1 TABLE OF CONTENTS President’s Message 3 Articles Federation of Euro-Asian Stock Exchanges 4 Takasbank 8 HP Capital Markets Framework 10 World Federation of Exchanges 12 The International Accounting Standards Board 14 Stock Exchange Profiles Amman Stock Exchange 16 Lahore Stock Exchange 52 Armenian Stock Exchange 19 Macedonian Stock Exchange 55 Baku Interbank Currency Exchange 22 Moldovan Stock Exchange 59 Baku Stock Exchange 25 Mongolian Stock Exchange 62 Bulgarian Stock Exchange 28 Muscat Securities Market 65 Cairo and Alexandria Stock Exchanges 31 Palestine Securities Exchange 68 Dhaka Stock Exchange 34 State Commodity & Raw Materials Georgian Stock Exchange 37 Exchange of Turkmenistan 71 Istanbul Stock Exchange 40 Tehran Stock Exchange 73 Karachi Stock Exchange 43 Tirana Stock Exchange 76 Kazakhstan Stock Exchange 46 “Toshkent” Republican Stock Exchange 79 Kyrgyz Stock Exchange 49 Ukrainian Stock Exchange 82 Zagreb Stock Exchange 85 Member List 89 FEDERATION OF EURO-ASIAN STOCK EXCHANGES (FEAS) I.M.K.B, Reflitpafla Mah. Tuncay Artun Cad. Emirgan 34467 Istanbul, Turkey Tel: (90 212) 298 2160 Fax: (90 212) 298 2209 E-mail: [email protected] Web address: www.feas.org Contacts: Mr. Aril Seren, Secretary General Ms. Rosalind Marshall, Assistant Secretary General The Federation of Euro-Asian Stock Exchanges Yearbook 2002/2003 is published by the Federation of Euro-Asian Stock Exchanges. All editorial material was collated and edited by the Federation of Euro-Asian Stock Exchanges. The design, production and distribution was coordinated by the Federation of Euro-Asian Stock Exchanges. Designed by: Tayburn Kurumsal Edited by: Joan Eroncel Although every care has been taken to ensure the accuracy of the information contained within the publication, the Secretariat cannot be held liable for any inaccuracies, errors or omissions, nor held liable for any actions taken on the basis of the information provided herein. © The Federation of Euro-Asian Stock Exchanges FEDERATION OF EURO-ASIAN STOCK EXCHANGES > YEARBOOK 2002/2003 > PAGE 3 FEDERATION OF EURO-ASIAN STOCK EXCHANGES PRESIDENT’S MESSAGE The year 2002 showed FEAS markets as defining expansion in terms of stepping up to the challenges of providing viable economic solutions based on the financing needs of their domestic markets. Osman Birsen President of FEAS & Chairman and CEO of the Istanbul Stock Exchange Despite the continued pressure on our markets as world The FEAS website, among the many added features, now and domestic events unfold, 2002 can best be characterized provides cross comparative statistics, practices and as a year of change and growth for FEAS member markets procedures; all of which are downloadable into MS Excel and the region as a whole. Equity markets globally took a for analytical purposes. hit in the aftermath of the breakdown in corporate governance in the US. However, the FEAS regional statistics Implementation of a cost effective member data file interface show the resilience of our markets in 2002, with across the to the FDC was completed in 2002, with the goal of board increases in market capitalization and trading volumes achieving full implementation by 2003. in all financial instruments. In addition the year 2002 showed FEAS markets as defining expansion in terms of stepping At the successful completion of the 8th Annual General up to the challenges of providing viable economic solutions Assembly in September 2002, warmly hosted by our based on the financing needs of their domestic markets. colleagues at the Ukrainian Stock Exchange in Kiev, the They accomplished this by adding debt, as well as other FEAS members again gave their support to the Istanbul financial instruments to their equity offerings. The accurate Stock Exchange for the elected position of President until assessment of market transition can be seen through a 2005. I would like to thank the FEAS members for their slight shift in the region toward the development of bond vote of confidence and as the Chairman and CEO of the trading, which now represents 12% of total trading volume, ISE, I would like to reiterate our commitment, as both the up from 6% a year earlier. leader of the Federation and as a member stock exchange of the region, to continue to facilitate the achievement of In each FEAS member profile, on the following pages, the the goals of FEAS as set forth in our new jointly developed CEO messages recap market development throughout the 5-year strategic plan. We would also like to extend our year and the future outlook defines up and coming plans congratulations to the Ukrainian Stock Exchange as the for 2003. A key recurring theme among at least 50% of our newly elected Vice President and express our appreciation member markets is that rules and regulations are being to the Karachi Stock Exchange for their accomplishments revamped as a number one priority to become more in line in this post. with internationally accepted standards. In essence the region is emerging from unrecognized and inexperienced We look forward to the contributions of the Armenian markets into a globally recognized and viable haven for Stock Exchange, the newest member of FEAS, toward investment, rife with opportunities in all types of financial regional initiatives and solidarity and invite you, our instruments, not just equity. subscribers, to visit their profile pages in the sections that follow. Regional development and cooperation, a key objective of the Federation, is now more than ever, pivotal in softening I would like to thank our members for their dedication to the blow of negative global events not just by our joint and regional development and cooperation, our sponsors for consolidated efforts, but by merging into an internationally their continued support and the Secretariat for effectively standardized and harmonized region. Our most notable carrying out our plans and strategies. achievements in 2002 and highlights for continuing programs include: All in all the accomplishments of regional objectives through the efforts of our working committees, our joint OECD and A FEAS funded bilateral exchange program that allowed supporting organization projects have proved to be FEAS members to travel to another member for the purpose substantial in our growth during 2002 and as you will see of exchanging information and experiences on specific our commitment towards cooperation and development topic(s) of interest to both exchanges. This program will in 2003 will remain equally steadfast. continue into 2003. The completion and distribution of the joint FEAS/OECD 28 guidelines published in “Best Practices for Stock Exchanges in Transition Economies.” In 2003 a self- assessment workshop will be held to share experiences in implementation and to more closely harmonize the guidelines with the FEAS Rule Book. FEDERATION OF EURO-ASIAN STOCK EXCHANGES > YEARBOOK 2002/2003 > PAGE 4 FEDERATION OF EURO-ASIAN STOCK EXCHANGES HISTORY Working Committees • To organize a team of IT and business experts The Federation of Euro-Asian Stock Exchanges (from within FEAS members) who will provide (FEAS) was established on 16 May 1995 with 12 Rules & Regulations (RRWC) expertise to those exchanges who have founding members and has grown to 24 During 2002 the RRWC made strides in areas specifically asked for assistance. Potential target members in 22 countries. Membership in the of data definitions and query prioritization for issues include FDC and CTP requirements to be Federation is open to emerging stock exchanges the FEAS Data Center (FDC), completion of incorporated with, but not limited to: project in Europe and Asia. Until May, 2003 the position the revenue/expense analysis for the years management, trading systems, back office of President and Vice President will be held by 1998-2000, adoption of Best Practices systems, market data and WAN and will be the Istanbul and Karachi Stock Exchanges from (developed jointly by FEAS/OECD and the ISE) administered within the 2002-2003 bilateral May 2003-May 2005, the position of President in the area of corporate governance, and updates initiatives program. and Vice President will be held by the Istanbul to the FEAS Rule Book in the areas of trading, and Ukrainian Stock Exchanges. The Governing clearing and settlement, derivative markets and Seminars and Special Projects Body of FEAS is the General Assembly, market linkages. For 2003 the mandates will be: comprised of all 24 members, which meets once • “Best Practices” self-assessment workshop to IT Seminar (September - Kiev, Ukraine): annually in a member country. The Executive determine member development toward the In September the post General Assembly Committee, comprised of 12 members, is guidelines outlined in the joint FEAS/OECD/ISE program included an IT seminar. Among the responsible for developing of Federation policies, Best Practices for Stock Exchanges in Transition guest speakers was Mr. Alexander de Lange, making major administrative decisions, as Economies. Director of International Sales of Hewlett mandated by the General Assembly, approving • Organization of meetings of top issuers, Packard’s Capital Markets Solutions (CEEMEA) the content and scope of tasks assigned to the regulators and stock exchange intermediaries Financial Services Team, which supports the Working Committees and making on a region level within