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FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2007
BELARUSIAN CURRENCY AND STOCK EXCHANGE
Pavel Tsekhanovich
Chairman of the Board
Being the unique centre of exchange
trading in the Republic of Belarus, the
BCSE is empowered to trade different
financial instruments, such as currency
values & all types of securities.
Being the unique centre of exchange trading in
the Republic of Belarus, the Belarusian
Currency and Stock Exchange (BCSE) is
empowered to trade different financial
instruments, such as currency values and all
types of securities.
The constantly increasing trade turnover at the
BCSE demonstrates the possibility of the
BCSE to perform in the near future its main
task–to form a powerful and stable
infrastructure of an organized market focused
on the ultimate investor.
Functions of the BCSE
• Organization of exchange trading in foreign
currencies, futures and securities
• Clearing Center in Belarusian settlement
clearing system
• Settlement Depository for corporate
securities and municipal loan bonds
• Registration of OTC transactions with
corporate securities and Private Housing
Checks “Zhilje”
We render such Information service as
• On-line information products providing
current information about trading sessions on
different exchange market sectors
• Periodical information products on the base
of primary stock exchange information data on
separate financial market sectors
• Information products based on Internet
technology (Web-site www.bcse.by is a key
element of the system of information
disclosure with information on the currency,
stock and futures markets).
HISTORY AND DEVELOPMENT
The Belarusian Currency and Stock Exchange
(BCSE) was established on the basis of the
state-run Interbank Currency Exchange in
29 December 1998 as a non-profit, public
company with administrative and financial
autonomy. Having obtained the license to
pursue exchange activities and the depositary
license, the exchange began to organize trading
in the main segments of the financial market of
Belarus (the currency market, the government
securities market, the market of the National
Bank’s bonds, the corporate securities market,
the market of bonds of local loans and the
market of bills of exchange).
In 1999, the BCSE developed first listing criteria
to provide a transparent and efficient market.
The Exchange is governed by a five-member
board of directors. The highest body is the
general meeting of stockholders, managerial
body is the Supervisory Board (8 members).
The BCSE membership is comprised of 29
banks, 64 brokerage and dealer firms and 5
individuals.
The Interbank Currency Exchange was
established 4 March 1993 by 18 leading
business banks as a closed-type joint-stock
company. Its main task was organizing trading
in foreign currencies. On 24 March 1993, first
trades in the Russian ruble were held in the
electronic trading system. In 1995, the National
Bank of Belarus granted the Interbank Currency
Exchange the right to organize the purchase
and sale of futures on foreign currency and
other financial assets.
On 24 September 1996 the Interbank Currency
Exchange was made a subdivision of the
National Bank, in which capacity it organized
trading in foreign currencies for 2 years. In 1997,
the Interbank Currency Exchange was granted
the right to organize the secondary market of
government securities (except for registered
privatization vouchers) and the securities of the
National Bank.
First electronic government securities trades
were carried out at the Interbank Currency
Exchange on 16 January 1998.
The BCSE is aimed at:
• minimizing risks and transaction charges from
capital formation in the organized market;
• providing transparency of transactions;
• protecting investors’ legal rights and their
interests;
• implementing programs on financial resources
formation necessary for their development;
• developing state monetary and credit policy
market mechanisms;
• creating necessary conditions for the effective
control function of the State.
FUTURE OUTLOOK
The BCSE will continue the development of its
main segments such as futures, stock and
currency market.
The BCSE tasks can be summarized as follows:
• to raise competitive capacity, quality and
quantity of services rendered by the BCSE;
• to increase the efficiency of exchange
currency, stock and futures market functioning;
• to contribute to the effective settlement and
clearing system formation, that service main
segments of the organized financial market;
• to provide the Belarusian financial market with
information transparency;
• to assist in realization of state investment
programs and other projects aimed at
developing financial markets;
• to promote integration processes between
Russian and Belarusian financial systems;
• to create program and technical infrastructure
for electronic documents circulation in the
organized market;
• to develop our own program and technical
base, to implement modern computer
technologies into the exchange.
Particularly, developments in the futures market
implies increasing the range of futures market,
introducing commodity and interest futures and
options quotations. The stock market
development implies introducing new rules for
securities trades defining conditions and order
of conducting transactions with all kinds of
securities at the BCSE, their program and
technical realization, Internet trading
development, and working out an automated
listing system.
The currency market development implies
trading modes («double auction», «call (forward)
transactions») increased, organizing SWAP
market and conversion operations. Information
products and technological development implies
improving of the information systems, program
and technical, and telecommunication
infrastructures, creation of a reserve computer
center, introducing systems of cryptographic
information security and electronic
documentation circulation.
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