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FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2005
ARMENIAN STOCK EXCHANGE
Yermonya Vardevanyan
Chairwoman
The year 2004 witnessed a remarkable 118%
increase in the value of exchange trading to
nearly US$ 1.6 million, while at the same
time, the number of securities traded went
up by over 77%. Securities issued by 101
listed companies were traded showing a
25% increase over 2003. At year-end, the
number of listed companies stood at 196,
with 20 new companies listed on the stock
exchange during 2004. Still, the number of
companies which delisted was rather high
too, this is primarily attributable to the
ongoing changes in the corporate ownership
structure.
Despite the fact that only equities continued
to be traded on Armenian Stock Exchange
(Armex) floor, an important agreement was
HISTORY AND DEVELOPMENT
Armenian Stock Exchange (Armex) is the
successor of the Association of Securities
Market Participants, which was established
in Armenia in 1997. In December 2000, it
was renamed to the Armenian Stock
Exchange, and on the 13th of February,
2001, it was officially registered by the
Securities Commission of the Republic of
Armenia as a self-regulatory organization
pursuant to the Law of the Republic of
Armenia “On Securities Market Regulation”.
Armex is the only stock exchange registered
in Armenia. As a voluntary association of
broker (dealer) companies and a selfregulatory
organization, Armex approves
rules and regulations covering a variety of
activities, including listing, trading,
information disclosure, as well as rules of
professional ethics. The self-regulation
principle provides each member company
with equal rights to participate in the
management of the stock exchange. The
supreme management body of Armex is the
General Meeting of Members, which elects
the Observers’ Board. The latter elects the
Chairman and appoints the Chief Executive
Officer of the Exchange.
PAGE 44
During 2004, Armex witnessed a
remarkable 118% increase in the value of
exchange trading to nearly US$ 1.6 million,
while at the same time, the number of
securities traded went up by over 77%.
reached with the Government on launching
exchange trade in long- and middle-term
Government bonds in April 2005. In this
respect, amendments to the existing trading,
clearing and settlement procedures, as well
as trading system modifications were
required. All of these above mentioned
changes are now near completion.
Throughout 2004, Armex carried on with its
efforts to provide market participants and the
general public with accurate, timely and
complete information regarding the activities
of the Armenian securities market, as always,
striving to keep Armex as transparent as
possible. Exchange trading statistics and
information on the most recent
developments and events was at all times
Armex is subject to regulation by the state.
The Securities Commission of the Republic
of Armenia is the competent state authority
to regulate the activities of the capital
market, including the stock exchange, in
Armenia. This is carried out through
approving legislative acts and other
regulatory documents, which are compiled
with reporting requirements.
At present the Armenian Stock Exchange is
focused on improving operations, as well as
trading procedures and regulations to foster
a fair and transparent securities market and
toward complying with worldwide industry
standards.
accessible both through the Armex official
website (www.armex.am), and local media.
Further steps were initiated to enhance
cooperation in the region: of significant
importance was the Memorandum of
Understanding signed with the Georgian
Stock Exchange in December 2004, which
aims to promote information exchange and
consolidate efforts in investor awareness and
education.
In 2005 Armex will endeavor to build on its
prior achievements while fostering those
positive trends that may be crucial to the
ultimate success of the Armenian capital
market.
FUTURE OUTLOOK
In 2005, Armex plans to:
• launch trading in government bonds;
• facilitate launch of trading in securities on
a non-covered basis;
• implement exchange trading in foreign
exchange;
• introduce the Armex index with publication
on a regular basis;
• establish Armex Training Center to
conduct educational seminars for trade
participants, broker/dealer community,
reporting companies and general public;
• develop and introduce capital adequacy
requirements for exchange member
companies; and
• Continue improving regulations and
practices towards compliance with WFE and
IOSCO recommendations.