Download - FEAS

FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT OCTOBER 2008CDA CENTRAL DEPOSITORY OF ARMENIAAFFILIATE MEMBERThe securities market of Armenia, being inits nascent stage of development, stronglyemphasizes the issue of protectinginvestor's rights and legal interests.Vahan StepanyanCEOThe securities market of Armenia, being in itsnascent stage of development, stronglyemphasizes the issue of protecting investor'srights and legal interests. Past experiencehas proved the success of the CDA’s model,which implements the registry maintenance,depository and clearing/settlement functionsthrough a centralized institution. Thisadopted model significantly contributes tothe decrease of securities market institutionalrisks and protection of investors rights.I am pleased to report that we aligned all ourefforts to bring the CDA in line with theinternational standards from the governance,technological and legal/regulatoryviewpoints.Striving to Perform to HigherIndustry Standards withNASDAQ OMXImproving the protection of investor’s rightsand lawful interests is currently one of thepriorities for the development of the Armeniancapital market. In early 2008 becoming acompany 100% owned by the largest globalexchange operator NASDAQ OMX, theCentral Depository of Armenia jsc (CDA)strives to provide better and more tailor madeservices to its corporate and individualcustomers.Joining forces with the Armenian StockExchange jsc, which has also become a partof NASDAQ OMX Group, the CDA willcontinue increasing the efficiency of itsoperations and working to raise populationawareness about the securities market inArmenia.HistoryPrior to the establishment of the CentralDepository of Armenia cjsc, there was nocentralized registry operating in Armenia.Based on the Government decree no: 4,dated 10 January 1996 the "NationalCentralized Register" state-owned enterprisewas established. According to theGovernment decree of 8 April 1999 it wasreorganized into the Central Depository ofArmenia cjsc, which started to performactivities of a centralized depository, as wellas custodian operations.In August 2000, the new “Law on SecuritiesMarket Regulation” came into effect,according to which the Central Depository ofArmenia Self-Regulatory Organizationassumed the the exclusive powers of thecentralized principal custodian, securitiesregistrar, as well as the clearing andsettlement functions throughout the Republicof Armenia.Following legislative changes in late 2007, theCDA SRO was reorganized into an open jointstock company, and, like Armenian StockExchange jsc, is currently fully owned byNASDAQ OMX.Future OutlookPlans for the second half of 2008 includeintroduction of non-covered trade insecurities, as well as the establishment of aGuarantee Fund that will help better protectthe interest of investors. The CDA is currentlyalso working with the Central Bank of Armeniato design service provision procedures for thenew funded pension system that is planned tobe introduced in 2009.Primary Functions1. Register maintenance2. Custodian functions3. Clearing and settlement functionsRegulated byCentral Bank of ArmeniaOwnershipFully owned by NASDAQ OMX Group Inc.Legal StatusOpen joint stock company.Type of Commercial EntityFor profit.Form of SecuritiesDematerializedForm of Settlement and TransfersBook-entrySettlement PeriodExchange trades: T+0OTC (over the counter) trades: T+3Memberships to InternationalOrganizationsFederation of Eurasian Stock Exchanges(FEAS)European Central Securities DepositoriesAssociation (ECSDA)International Association of Stock Exchangesof the States of Commonwealth ofIndependent States (IAS CIS).* Please refer to page 34 for the Armenia country report.CONTACT INFORMATIONAddress Mher Mkrtchyan 5b, Yerevan, Republic of ArmeniaTel (374 10) 520978 Fax (374 10) 585549Contact Name Vahan Stepanyan E-mail depository@cda.am Website www.cda.amPAGE 91