JUNE 2013 - FEAS

FEDERATION OF EURO-ASIAN STOCK EXCHANGES ANNUAL REPORT JUNE 2013
FEDERATION OF EURO-ASIAN STOCK EXCHANGES
İbrahim Turhan
Chairperson of FEAS
As we close our 16th year, we look to the
future with a renewed sense of purpose
and a detailed strategy for achieving our
goals.
The effects of Global Financial Crisis have
continued throughout the whole world during
2012. The world economy has expanded by
3.2% corresponding to a slowdown when
compared to 4.4% growth in 2011. The global
economy is expected to grow by 3.3% and
4.0% in 2013 and 2014, respectively. While
the growth in advanced economies has been
1.2%, emerging and developed markets has
grown by 5.1%. The expectations regarding the
advanced economies reflects the relative weak
recovery, namely the growth is expected to be
around 1.2% and 2.2% in 2013 and 2014. On
the other hand, the momentum within emerging
markets seems to continue with expected
output increase of 5.3% in 2013 and 5.7% in
2014 according to IMF predictions. In the shortrun,
risks associated with Euro-area appear to
continue. On the other hand, in the medium
and long term, the strategies of central banks
to cease excessive liquidity injections and fiscal
policies that would appropriately reduce public
debt will be main dominant factors that are
going to shape future performance of the world
economy.
In terms of capital markets, according to the
WFE data, the volume of equity transactions in
member exchanges has decreased by 22.5%
with a total amount of US$ 49 trillion. The
volume of derivatives transactions dwindled
as well by 20%. The total volume of equity
and interest rates contracts has been 14.9
billion during 2012. The downward trend in
volume can also be observed in terms of ETFs,
securitized derivatives, and bonds transactions.
Given this remarkable decline in the volumes
worldwide, the interactions among stock
exchanges became much more crucial. In this
respect, FEAS initiative is one of the leading
models integrated markets creating a common
shield for economic turbulences while trading
the mutually beneficial products.
In its eighteenth year of operation, FEAS
accomplished some noteworthy events such
as the first Summit which has been hosted
by Borsa Istanbul on May 20 just before
the Working Committee Meeting. Several
members presented their countries’ investment
opportunities towards the foreign and local
investors in the audience.
During 2012, FEAS continued the On-Site
Training Program where 10 member exchanges
have applied to send their colleagues for a
two-week program, hosted by Tehran Stock
Exchange. Also, the First Executive Board
Meeting and Working Committee Meeting held
in Istanbul, Turkey in May, together with the
Working Committee; FEAS General Assembly
Meeting and Executive Committee Meeting was
held in Sofia, Bulgaria on September 2012.
I also would like to take this opportunity
to extend my heartfelt thanks for their
contributions to Finans Asset Management,
IS Investment, and Tayburn, for making this
publication possible.
The future outlook for our markets seems to
depict that our member markets continue
to provide competitive and viable financing
options to both government and private
sectors, while enhancing operations through
technology and expanding the services offered
to market participants. We surely continue to
focus on the areas of increased transparency
through investing in infrastructure and
developing regulations to promote stronger
environmental social governance. The efforts
of all our Task Force Members will surely
play a vital role in achieving our objectives
through their commitment and hard work and
the Secretariat for maintaining our cohesive
organization. As we close our 16th year, we
look to the future with a renewed sense of
purpose and a detailed strategy for achieving
our goals.
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