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FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2005
FEDERATION OF EURO-ASIAN STOCK EXCHANGES
Task Forces
As a result of combining the Working
Committees, 12 Task Forces were formed to
carry out the mandates of the Executive
Committee with the approval of the General
Assembly. Due to the fact that some Task
Forces completed the tasks assigned to them
and some new task forces were formed, only
the active Task Forces are listed below.
Task Force 0401 – Semi Annual Report
(2005 Completion)
The Yearbook has been changed from an
annual report to a semi annual report that will
include two pages per country in order to
highlight the economic and political
developments in each member’s respective
country. In addition the members’ pages have
been redesigned to include only the most
recent and up to date information. It was
agreed upon that the first publication would
be printed in the May and the second
publication would be available in electronic
format in October. The first publication has
been printed and is available on the FEAS
website at
http://www.feas.org/downloads/FEAS%2026
july05.pdf
Task Force 0402 – Post General Assembly
& Post Working Committee IT Training (Led
by FEAS Secretariat)
After the General Assembly Meeting in
Zagreb, Croatia, presentations were made by
two of the FEAS Sponsors Computershare
and Hewlett Packard. For the IT Conference
that was hosted by the Bulgarian Stock
Exchange; presentations by FEAS Members,
Consultancies and IT Vendors will be made.
Some of the vendors that will be presenting
include: Computershare, OMX Technology,
Options Industry Council, Symex Economics,
and Tata Consultancy Services. A Post-
General Assembly IT conference was also
held with presentations from Atos Euronext,
Tata and GL Trade.
Task Force 0404 – Media (Led by Muscat
Securities Market)
Two programs were proposed by the Task
Force. The first program was held in Istanbul,
Turkey in September. The purpose of this
meeting was to draft a uniform curriculum for
training the media. The second program was
suggested to be held in Muscat, Oman on
December 11-15th 2005, in order to provide
the previously developed training to the
instructor groups and participating members.
Task Force 0406 – Regional Indices (Led
by Tehran Stock Exchange)
At the WC Meeting in Tbilisi, Georgia Dow
Jones Indices gave a presentation on their
product offering and the proposed FEAS
Index and its specifications. The Task Force is
in the process of conducting a survey among
FEAS members and also negotiating with
Dow Jones Indices.
Task Force 0411 – Market Principle (Led by
Istanbul Stock Exchange)
In conjunction with the World Federation of
Exchange’s effort to update their market
principles, FEAS members are working to
contribute ideas and information to this end.
The Task Force has updated the Market
Principles to make it inclusive of both WFE
and FEAS ideas. This new document was
proposed and approved by the General
Assembly in Shiraz, Iran in September.
Task Force 0412 – Corporate Governance
(Led by Karachi Stock Exchange)
All members in the FEAS region place a
strong emphasis on Corporate Governance.
For this reason a task force was created to
provide a vehicle for informing all member
stock exchanges of international regulations
and practices regarding corporate
governance. The Bucharest Stock Exchange
hosted a conference on Corporate
Governance in June of 2005.
2004 Mandates:
• Publication and Distribution of the Semi
Annual Report in March/April and
September/October
• Hold an IT Conference hosted by the
Bulgarian Stock Exchange
• Hold a Media Conference hosted by the
Muscat Securities Market
• Create a Regional Index for FEAS
• Hold a Corporate Governance Conference
to be hosted by the Bucharest Stock
Exchange
• Work with the WFE to update Market
Principles
• Completion of the ongoing revenue analysis
from 2000 through 2004.
• Distribution, tabulation and reporting on the
results of the World Federation Trading Survey
with comparative results
FDC & SPECIAL PROJECTS
FEAS DATA CENTER (FDC)
A full system test was completed as of 1
September 2003 and the FDC began
implementation with the Macedonian SE in
September 2003. The system went live on
September 15th. Implementation of all
members will take a phased approach.
In 2005, Amman Stock Exchange plans to
implement the FDC.
The FDC includes market statistics, company
data, ratios, stock price information, exchange
rates and sector data contained in 14
predefined reports. To access the FEAS Data
Center (FDC) go to:
http://64.78.38.242/reports/countrylist.asp or
go to www.feas.org and click on the FEAS
Members drop-down menu.
OECD/ISE PRIVATE SECTOR
DEVELOPMENT (PSD)
The Federation, in conjunction with both the
ISE and the OECD, has jointly designed and
implemented a program entitled “Private
Sector Development” - a comprehensive
three-year program dealing with the
development of Small to Medium Enterprises
(SMEs), while enhancing the attractiveness of
the FEAS region through the development of
‘best practices’ for stock exchanges in
transition economies.
SME Development: Regional work as the
follow-up of the meeting entitled “Business
Incubation, Finance and Growth in Emerging
Markets” of 2002 was conducted. Emphasis
was given to the development of financing
models and methods for SME’s in Turkey,
which can be successfully applied to the
FEAS region. The project was finalized in a
meeting held in the spring of 2004.
Best Practices: This project deals with
strategies to promote the role of stock
exchanges in the ongoing financing needs of
member markets. A set of best practices for
the development of stock exchanges was
prepared and distributed in 2001. A total of 28
best practices were set forth as a basic set of
legal and market guidelines, which cover key
regulatory and institutional issues. A selfassessment
workshop on FEAS member
implementation of the best practices on
clearing, settlement custody, and registration
was held on 5-6 February 2003 in Almaty,
Kazakhstan. The working group made a
thorough evaluation of the assessment
methodologies developed by international
assessment organizations in order to come
up with a self-assessment method that targets
priorities applicable to the FEAS region. It was
decided that a draft questionnaire for selfevaluation
would be sent out to FEAS
members for their views. In 2004 the OECD
was asked to prepare a follow-up document
which can be used by FEAS members for self
evaluation of Best Practices Compliance. The
results of this survey will be published in the
self-evaluation report in 2005.
SECI MODEL
SECI is the UN project, the Southeast
European Cooperative Initiative, which targets
cooperation among securities markets of
Southern Europe, most of which are FEAS
members. The project is taken up by two
groups of securities markets, that is, the stock
exchanges and the regulators.
The SECI project is expected to be the
foundation of the FEAS common trading
platform. The initial stage of the SECI project
is the groundwork prepared by the Athens
and Istanbul Stock Exchanges. A MoU was
signed between regulatory bodies of the
Turkish and Greek capital markets in 2001,
and working groups from both exchanges
examined issues regarding technical links,
regulatory environment, and trading and
settlement procedures. Once all stages of
cooperation and linkages are implemented
between Athens and Istanbul, the other
exchanges of the region will be invited to join
the existing set up.
As a side product of SECI, another initiative
for creating a common stock index of Greek,
Turkish and Israeli blue chips exists. The three
most important exchanges of South East
Europe-South East Mediterranean held a
trilateral meeting for the first time with the
objective of discussing ways to promote
cooperation.
The Federation continues to work toward a
common trading platform within the region
and the SECI organization, which will pave the
way for organizational and structural efforts in
this area. As noted above FEAS members
have agreed on creating a regional index,
cross border trading is also being explored by
several member exchanges as a test for
further implementation across all FEAS
members.
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