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FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2005
“TOSHKENT” REPUBLICAN STOCK EXCHANGE
Bakhtiyor Radjabov
Chairman
As a result of all of the hard work of the staff
of the “Toshkent” Republican Stock
Exchange (TRSE) in 2005, TRSE has
achieved certain positive results. In the first
half of the year as of the 1st of June, 2005,
2000 transactions with the shares of 373
joint-stock companies and 5 transactions
with corporate bonds have been carried out
on the trading platforms of the TRSE.
• Trade with corporate bonds accounted
for 1%;
• Shares of the privatized state enterprises
accounted for 21.2%;
• IPOs and other additional issued shares
of the joint-stock companies accounted
for 1.3%;
• Shares in the secondary market accounted
for 40% and
• Shares obtained by foreign investors for
hard currency accounted for 37.5% of the
total volume.
In comparison with the corresponding period
of 2004, the trading volume of shares has
increased 1.1 times, while the trading volume
HISTORY AND DEVELOPMENT
A stock department was established in
1991, which became a pioneer of
Uzbekistan’s securities market, and was
eventually transformed in 1994 into the
“Toshkent” Republican Stock Exchange
(TRSE) - a closed joint-stock company. The
TRSE became an open joint-stock company
in 1998. Establishment of the TRSE was
closely connected to its market performance
and a policy of establishing public jointstock
companies on the basis of privatized
government enterprises. Currently, the TRSE
has 39 shareholders.
Throughout its development, the TRSE
completed a complex infrastructure, a
central office in Tashkent, and branches and
brokerage offices in all regions nationwide.
In 1994, 12 brokerage offices were members
of the Exchange and as of the 1st July 2005,
this number had increased to 61.
On 1 February 1998, a listing procedure was
introduced. On 1 September 1998, shares of
the first listed company began trading on
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Our forecasts about the increase of the
secondary market have been proving
themselves... shares of the secondary
market volume make up more than 77%
of the total trade volume with stocks.
of shares for hard currency has increased
2.2 times. Our forecasts about the increase
of the secondary market have been proving
themselves. As of 1 July 2005 the share of
the secondary market volume makes up
more than 77% of the total trade volume with
stocks.
We expect that the further development of
the secondary market will keep this pace.
Currently, there are securities of 700
companies in circulation in the secondary
market, which should considerably increase
the share of securities in the secondary
market.
In 2006 TRSE plans to increase the volume
of trade with securities. Most importantly, we
will carry out technical modernization of the
system of electronic exchange trades:
1. Perfection of the technology of exchange
trades:
First, the TRSE will create of a platform for
the secondary circulation of shares in the
secondary market, working on technology
the TRSE. A specialized trading platform, for
the purpose of selling shares of privatized
enterprises to foreign investors for hard
currency, was launched on 1 January 1999.
In 2001, work on Exchange information and
electronic trading systems continued. The
website www.uzse.uz started operations in
2001, and today the TRSE continues work
on a transition to modern web-technology
trading. In addition, the website reflects daily
information on IPOs and other JSCs.
Investors may follow all the currents
changes and information on listed
companies, share price and amounts
standing out.
In 2003 new listing procedures were
adopted at TRSE where the requirements for
the official as well as unofficial listing were
stated. Currently the four largest companies
of Uzbekistan are listed in Class “A” of the
official listing.
Founded eleven years ago as Uzbekistan’s
first stock exchange, the TRSE is actively
taking part, always keeping in mind its major
role, in the development of the Uzbek capital
market.
based on simple auction. Second, the TRSE
will create a special platform on fulfillment of
transactions.
2. Modernization by updating the equipment.
TRSE will complete modernization of
equipment in all branches and in the
exchange itself.
3. Modernization of the trading system of
the TRSE. The TRSE will translate into a new
technological platform the whole trading
system of the Stock Exchange and create a
uniform database. Further the TRSE will
endeavor to open facilities for regional broker
offices to access the trading system from
distance and implement maintenance of a
closed network of data transmission for all
regional branches.
FUTURE OUTLOOK
The priority direction of the development of
the TRSE in 2005 will become the opening
of two additional trade sections:
1. Section on transactions for shares of
unlisted companies;
2. Section on transactions for TURNIP (the
deals with inverse contract).
Additionally, The TRSE is planning to
change the current software system and
bring it to standards in accordance with the
Rules of the Stock Exchange, as well as
prepare new, more complex software, in
particular:
• development of the module on conclusion
of turnip-deals, based on technology of
continual double auction;
• modernization of software system, based
on technologies of the simple auction; and
• full modernization of software system of
the TRSE, with transition on new technical
platform.