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FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2008ARMENIAN STOCK EXCHANGEArmenian Stock Exchange becomes ownedby the world’s largest exchange companyNASDAQ OMX Group Inc.Armen MelikyanChief Executive OfficerThe beginning of the year 2008 was markedwith a large scale merger in the global capitalmarket, that between the largest US Exchangeoperator NASDAQ and the Nordic exchangeoperator and technology provider OMX. As aresult, the Armenian Stock Exchange (JSC)(Armex) previously owned by OMX hasbecome a part of the world’s premierexchange company, NASDAQ OMX GroupInc., which has presence in over 20 countriesand over 3,900 company listings across theworld.One of Armex’s major achievements in the firsthalf of 2008 was the successful launch inJanuary of stock exchange trading ingovernment bonds. As of June 30, total valuetraded in this instrument reached US$ 1.7million. The concept of market making forgovernment bonds was also been introduced,and there are currently five market makersworking in the regulated marketplace.As of today, the corporate bonds market wasalso revived significantly, showing eleventimes the growth of value traded amounting toUS$ 3.79 million (as compared to US$ 0.27million in H1, 2007). Along with fixed incomeinstruments, foreign exchange trading has alsoexpanded during the first half of 2008. FXvalue traded showed outstanding results:value equal to US$ 442.2 million and EUR 520thousand was traded, which represents anearly two times growth for trading in USDollars and six times growth for trading in Euroover the previous year’s same period.Unlike other markets, this year’s equitiestrading at Armex decreased by 69% ascompared to the first half of the previous year.This happened primarily due to a sharpreduction in the number of listed companies:after changes in securities market regulationsonly the most efficient and sustainablecompanies could preserve their listed status.This, despite the said reduction in trading inthe short run, is expected to have a positiveoverall effect on the development of theArmenian securities market in the future.Armex sees encouraging securities IPOs as itshighest priority for the rest of 2008.Collaboration with the stakeholders, includingbroker companies, banks, and issuers iscurrently underway, and the first IPO isexpected to happen by early 2009.The presence of NASDAQ OMX in Armeniaand its joining in the effort with Armex is verypromising for the revival of the Armeniancapital market. Together, we hope to be ableto create an efficient market that wouldconsistently contribute to the growth of theArmenian economy.FUTURE OUTLOOKIn 2008, Armex plans to:• complete the integration with NASDAQ OMXGroup;• develop and introduce new clearingmechanisms;• facilitate the launch of trading in securities ona non-covered basis;• establish a Guarantee Fund to increaseinvestor protection;• launch the first IPOs;• undertake steps to increase public awarenessabout the capital market.CONTACT INFORMATIONContact Name Mr. Armen MelikyanE-mail amelikyan@armex.amWebsite www.armex.amPAGE 30