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FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT APRIL 2007
BELGRADE STOCK EXCHANGE
Gordana Dostanic
Managing Director
On the BSE, turnover at the end of
November 2006 is 76% higher than the total
turnover in 2005 (shares increased
participation to 86% while bonds accounted
14% of total trading).
According to official statistics, in first 11 months
of the 2006 production, export, bank
investments and foreign-exchange reserves
within the National Bank of Serbia increased,
compared to 2005, while annual inflation is at
the level of 6.5%. On the Belgrade Stock
Exchange (BSE) turnover at the end of
November 2006 is 76% higher than the total
turnover in 2005 (shares increased participation
to 86% while bonds accounted for 14% of total
trading). Market capitalization of the BSE is over
EUR 10 billion, the BELEXfm increased 20%
and the BELEX15 index increased its value by
50% in first eleven months, reaching their latest
historical highs during November.
Positive changes were recorded in the
emergence of new trading material, new trading
participants, higher number of different profile
investors, continuous enhancement of capital
market institutions changing overall securities
trading ambiance. A new set of laws and bylaws
were enacted, like the Law on Investment
Funds and the Law on Takeover of Share
Companies, as well as alterations and
supplements of the existing Law on Securities.
New securities were admitted, the number of
securities trading in the continuous trading
method rose, existing analysis were refined and
upgraded and newly introduced, the reporting
was improved, cooperation was established
with various partners, the number of end users
of real time services widened, new publications
were published and training and educational
courses were organized which all contributed to
the BSE being well accepted by the public and
seen to be gaining in popularity.
A new internet presentation was launched, with
an up-to-date design and user friendly access
to data, offering additional tools, indicators and
charts, while all information services were
improved and new introduced during the year
(RSS Feed).
HISTORY AND DEVELOPMENT
The Belgrade Stock Exchange (BSE) was
originally founded in 1894, on 21 November
but the first transactions were made in January
1895. The last meeting was held on 4 April
1941. The Stock Exchange was closed in
1953, as an unnecessary and wasteful
institution.
The BSE was refounded in 1989, as a
“Yugoslav Capital Market”. In 1992, the BSE
officially got it’s name back, continuing the
tradition of the old stock exchange, which was
one of the biggest South European stock
exchanges. The key events in the latest history
are:
• In September 2002 Republic of Serbia
Bonds trading began;
• In December 2002 the First International
Conference was held;
• In September 2003 expositions in honour of
110 years of the BSE were held.
• In September 2003 the Second International
Conference was held and the project of
Informational Platform of the SEE Stock
Exchanges was introduced;
• In March 2004, remote trading was
launched;
• In September 2004, the BSE achieved full
membership in FEAS;
• In October 2004 continuous trading of
stocks has begun;
• In November 2004 the Third International
Conference was held. The 110th anniversary
of the BSE was celebrated;
• In December 2004, BELEXfm index has
been launched;
• In February 2005, the BSE became an
associate member of FESE;
• In March 2005, BELEX.info service was
launched;
• In May 2005 the data distribution via Data
Feed has begun;
• In October 2005 the BELEX15 index has
been introduced;
• In November 2005 the Fourth International
Conference “Preserving Integrity and Efficiency
of the Capital Market” was held;
• In January 2006 new website was launched;
• In April 2006 various training courses were
started;
• In April 2006 MoU was signed with the IFC
to establish cooperation in improving
corporate governance in Serbia;
• In September 2006 BELEX RSS Feed
service was launched;
• In November 2006 the Fifth International
Conference “Where are the Exchanges
Heading?” was held;
FUTURE OUTLOOK
In 2007 the BSE has the following plans:
Streaming the development of the Serbian
capital market demands with a constant eye
on the world’s practice in this area, with an
accent on regional standards, and only
afterwards followed by the definition of
domestic circumstances and for optimal
harmonization. Special attention is going to
be paid to trends regarding the regulation,
as well as the application of contemporary
IT solutions.
As the pressure of lifting the efficiency of
business operations and reducing costs per
transaction is constantly present, the BSE
actively approached the project of redesigning
the trading system and introducing the
standard electronic communication protocol
between market participants. The BSE opted
for the FIX Protocol, to be set as the standard
for the data exchange in trading on the worlds
exchanges.
Special activities are going to be undertaken
in terms of stimulating companies to
accept the advantages of higher listing levels.
Development of corporate governance is an
integral part of activities and closely related to
the Exchange listings and development of the
securities industry in Serbia.
The Exchange will proceed with the project on
developing financial derivatives, based on well
known and used standards in this area.
The BSE set its targets to aim towards
upgrading the reporting process, organizing
educational courses, and it will continue its
active engagement in specialized working
bodies with the intention to join international
flows.
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