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FEDERATION OF EURO-ASIAN STOCK EXCHANGES ANNUAL REPORT JUNE 2010KYRGYZ STOCK EXCHANGEIn 2009 trading volume of the Kyrgyz StockExchange (KSE) has decreased 29.4% incomparison with 2008.Aibek TolubaevPresidentIn 2009 trading volume of the Kyrgyz StockExchange (KSE) has decreased by 29.4% incomparison with 2008 and the volume totaled2,95 billion KG Som (about US$ 66 million).The total quantity of the transactions hasdecreased by 72.8% represented by 926transactions.In listing sector trading volume has increasedon 41.3% in comparison with 2008 andtotaled 842.8 million KG Som (about US$ 19,1million).In non listing sector trading volume hasdecreased by 41,2% in comparison with 2008and totaled 2,1 billion KG Som (about US$46.9 million).Trading volume of primary market totaled 1,52billion KG Som (about US$ 34,7 million), incomparison with volume of 2008 it hasincreased by 69,0%.Trading volume of secondary market totaled1.43 billion KG Som (about US$ 31,3 million),in comparison with volume of 2008 it hasdecreased by 56,6%.HISTORY AND DEVELOPMENTThe KSE was founded in 1994. The officialopening and the first trade in stocks tookplace in May 1995, while the privatizationprocess was in full swing in our country.At the initial stage of its existence and up until2000, the KSE had functioned as a non-profitorganization with a total membership of 16. InMay 2000 the KSE was transformed into ajoint-stock company; simultaneously weacquired one of the largest shareholders anda reliable partner the Istanbul StockExchange, which has actively assisted us inimproving our activities. In 2001 theKazakhstan Stock Exchange became ashareholder allowing the KSE to significantlyincrease its technical software potential. Atpresent the KSE is a closed-type non-profitjoint-stock company with 17 shareholders.FUTURE OUTLOOKPriorities for the KSE in 2010 are:• Transfer of government treasury bills’circulation of the trade area of KSE• Circulation of securities of «blue chips»• Development of corporate equity marketand capital formation by domestic companies• Development of listing and market making• Development of municipal equity market• Integration with the cross markets andinternational exchanges.A significant contribution has been made bythe US Agency on International Development(USAID) for the sake of our continueddevelopment. Thanks to the USAID, the KSEhas obtained powerful financial support thathas allowed our Exchange becomeindependent.PAGE 106