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FEDERATION OF EURO-ASIAN STOCK EXCHANGES ANNUAL REPORT JUNE 2010MOLDOVA STOCK EXCHANGEIn 2009 the total exchange volumeamounted to 13.0 million US$.Dr. Corneliu DoduPresidentThe past year has been difficult not only forour country, but for the entire worldcommunity. Financial and economic crisis,as well as the unstable political situation inthe country significantly affected both thereal and the financial sector. The stockmarket is no exception and although lastyear according to the horoscope was theyear of the ox, still on the securities marketmore “bearish atmosphere” prevailed. Thestagnation in the market, lack of liquidity,there are more sellers than buyers on themarket, and investors waiting better times –these are characteristics of the pass year.At the end of the year on the StockExchange registered 1,019 issuers, of whichin Listing - 13 and in non-listing - 1006. Thereare 22 accredited members of the stockexchange.In 2009 the total exchange volume amountedto 13.0 million US$ and, on the backgroundof the past years’ indicators, it decreased.Reducing of the stock exchange indicatorsrelated to:- Changing of the price conjuncture (thetendency of prices has declined).- Reducing of the volume of public offerings,which in 2009 were consequence of thepurchase of important packages in previousyears.- Lack of sales of government securities,which in 2008 amounted to almost 50% ofexchange volume.At year-end, the Government approved theProgram of stabilization and economicregeneration of the Republic of Moldova for2009-2011, which presented measures toregenerate the national economy, andrespectively the capital market in Moldova.HISTORY AND DEVELOPMENTIn 1993 the Law on securities circulation andstock exchanges was enacted and from thispoint in time the institutional infrastructure ofstock market in Moldova began to develop.In December 1994 the non-profit institution,Moldova Stock Exchange was established asjoint-stock close company. 34 promoters – thesecurities market professional participantstook part in its establishment. The firsttransactions were made on June 26, 1995,and this date is accepted as the birthday ofthe Moldova Stock Exchange.In June 1998 the Moldova Stock Exchangeestablished the National Securities Depositaryand a new trading system were integratedwith the depositary system which allowstransactions to be carried out. According tothe changes made in the law «On Securitiesmarket» which came into effect on January 1,2008, Moldova Stock Exchange has the rightto own up to 75% shares of National SecuritiesDepositary.In April 2000 Moldova Stock Exchangereceived the status of a self-regulating noncommercialorganization. In July 2000 newMoldova Stock Exchange’s Regulations wereintroduced which qualitatively changed themechanism of transactions.In July 2007 the Mega regulator – NationalCommission of Financial Market was created.According to the legislation the Mega regulatorregulates and determines state policy of thenonbank financial market.According to the new requirement of the law«On Securities market» from January 1, 2009,Moldova Stock Exchange is a public company,a for profit organization.At the present Moldova Stock Exchange is adeveloping stock market, which continues tocooperate with other stock exchanges andfinancial organizations. Besides the factthat MSE is a member of FEAS from 1995,in 2008 became the member of InternationalAssociation of the CIS Exchanges, whichhas the aim to coordinate the effort ondevelopment of organized financial markets inaccordance with international standards.FUTURE OUTLOOKThe priority directions of the Moldova StockExchange for 2010 are:• Increase the quality and quantity of theservices and products (consulting services,diversification the products, introducing newtrading instruments).• Attraction of more companies in listing.• Development of the IT infrastructure.• Modernizing the website of the MoldovaStock Exchange.• Modernizing trading system of the stockexchange.• Development a new database of issuersregistered on the Moldova Stock Exchange.• Cooperation with regional and internationalorganizations.PAGE 116