JUNE 2013 - FEAS

FEDERATION OF EURO-ASIAN STOCK EXCHANGES ANNUAL REPORT JUNE 2013MACEDONIAN CENTRAL SECURITIES DEPOSITORYMacedonian Central Securities Depository will focus onintroducing new financial instruments in Macedonian CapitalMarket.Elena Jakimovska PatrovskaActing CEOGeneral InformationThe purpose of The Macedonian CentralSecurities Depository (MCSD) is to establishcentral securities register comprising all activeshares, bonds and other financial instruments inRepublic of Macedonia. This will lead to betteraccess and distribution of information about theissuers and securities to:• Investors• Foreign investors• Holders of restrictive rights• Issuers• Brokers• Macedonian Stock Exchange• Pledge Register• Other authorized institutions in accordancewith the law.Brief HistoryA pre-study concerning the establishment of acentral securities register and a clearing andsettlement system in the Republic of Macedoniawas started in 1999 as a component of theGovernment’s program for the improvementand development of the Macedonian capitalmarket. The improvement of the infrastructurefor increasing national as well as internationalinvestors’ confidence in the Macedonian capitalmarket and financial sector in general, wereamong the preconditions for the World Bankand IMF’s programs of financial support to theRepublic of Macedonia.In accordance with the Securities Law, article172, the Government of Republic of Macedonia,with the Decision no7 - 167/1 from 20.02.2001,authorized the Payment Operational Service toundertake all necessary measures and activitiesfor implementation of the Central SecuritiesDepository.Regulatory EnvironmentMacedonian CSD is Self RegulatoryOrganisation, under authority of SecurityExchange Commission.ParticipantsAt present time, there are 15 participants, banksand brokerage houses.Services ProvidedThe Macedonian CSD is providing the followingservices to the participants in the operations,issuers and holders securities:• recording of the securities in the Depository;• notification of the issuers and holders ofsecurities about the condition on theiraccounts;• clearing and settlement of the liabilitiesarising from the transactions with securities;• rendering services connected with thecorporate activities;• other services that arise from the ownershipand transactions with securities, arising fromthe scope of its operations.Form of SecuritiesAll securities are registered and dematerialised.Future outlook 2013Conditions and environment in which operationof the Central Securities Depository AD Skopjewill take place in 2013, arise from environmentin which Macedonian economy will work.Beginning of 2013 is marked with changesof legal framework which has the most directimpact on the operation of the CSD in 2013,especially beginning of the application ofamendments to three important laws:• Company Law• Law on Securities• Law on Personal Income Tax.Also, at the beginning of 2013, amendmentsof Rules of operation of CSD and Rules forGuaranty Fund were approved by SecuritiesExchange Commission, which also will haveimpact on CSD operations.Potential strategic segments and objectivesfor development of Macedonian capital marketas well as Macedonian Central SecuritiesDepository are:• Proper positioning of the CSD in processesof regional and global connectivity of thecapital markets, especially establishingforms of collaboration and connections withother depository institutions in region• Improvement of the services offered by theDepositary to all participants in the securitiesmarket, according to their needs anddevelopment of new services;• Infrastructure development of the Depositoryfor the purpose of achieving its basic goals;• Technical and normative developmentof the functionalities of the Depositary,the upgrading of existing technical,technological and communication solutions;• Effective and sustainable management ofoperating expenses of the Depositary, takinginto account the minimization of operationalrisk;In order to reach strategic objectives,Depository plans to implement followingactivities in 2013:• Regular and timely fulfillment of obligationsregarding registration, clearing andsettlement of securities, as well as executingnon-trade transfers of securities• Introduction of new control mechanisms toreduce potential risks• Promotion of services in respect of securitieslending, in accordance with currentlegislation and by-laws and requirementsand needs of the members of theDepositary;• Implementation of new provisions inOperation Rules of the CSD related toomnibus accounts;• Analysis and design of new technologicalsolutions for data exchange and settlementof securities between the Depositary andsimilar institutions abroad;• analysis of needs and opportunities for useof 20022 SWIFT standards in operation;• Introducing new services for the Issuers ofthe securities using modern technologicalsolutions.• Development and realisation of plan foreducation for investors and issuers incooperation with Securities ExchangeCommission and Macedonian StockExchangeDuring 2013, Depository will be focusedin fulfillment of its obligations to holders ofsecurities, issuers, participants of Depository,Macedonian Stock Exchange, National Bankand government institutions.CONTACT INFORMATION* Please refer to page 63 for the Macedonia country report.Contact Name Ms. Sofija Vidovic E-mail vidoviks@cdhv.org.mk Website www.cdhv.org.mkPAGE 92