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FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT MAY 2005
FEDERATION OF EURO-ASIAN STOCK EXCHANGES
Osman Birsen
President of FEAS & Chairman and
CEO of the Istanbul Stock Exchange
We are very proud and excited to announce
that this year FEAS will produce two Semi
Annual Reports in May and October,
respectively. The aim of transitioning from an
annual to semi annual publication is two-fold.
First, through providing two publications
rather than just one, the market
performances of FEAS members will be
reflected in a more recent and detailed
fashion. Second, the environments (both
political and economic) within which those
markets operate are brought to the attention
of the readers more timely and concisely.
The FEAS region entered 2004 with a
growing hope for continued growth in world
economies. No one anticipated the
continued strength of our markets, becoming
more experienced and more transparent
every year. The outstanding performance in
2004 is evidenced in the consolidated
regional statistics on the adjoining pages, as
well as the individual statistics of each of our
members, in the member profile section.
The Federation, as a globally recognized
regional institution, is growing and maturing
together with its members towards its goals.
Founded 10 years ago by 12 regional
exchanges, FEAS has welcomed four new
members, bringing the total number of
members to 28:
• Abu Dhabi Securities Market,
• Banja Luka Stock Exchange,
• Belgrade Stock Exchange and
• Sarajevo Stock Exchange.
FEAS also looks forward to the possibility of
accepting the application of the Bahrain
Stock Exchange and Montenegro Stock
Exchange as the 29th and 30th members
in 2005.
Further, during the 12th Executive Committee
Meeting, held in Istanbul, Turkey on 14-15
December, it was decided that the proposals
by 6 members for their affiliate Central
Depositories to become FEAS Affiliate
Members would be voted by circular
resolution. Based on the circular resolution,
6 new affiliate members were admitted to
FEAS:
As our markets continue to step up to the
challenges of the global arena, the greater
importance will be to turn our focus toward
our vision for the future and to participate
in the regional development over the next
5-10 years.
• Central Securities Depository AD Skopje,
Macedonia
• Central Depository Company of Pakistan
Limited
• Central Depository of Armenia SRO
• ISE Settlement and Custody Bank Inc.,
Takasbank, Turkey
• Securities Depository Center of Jordan
• Tehran Stock Exchange Services
Company, Iran
As we approach our eleventh year of
operation, most of you are well aware of our
accomplishments to date; of those that were
particularly noteworthy are the
implementation of the FEAS Data Center
(FDC) to standardize and promote cross
market statistics, the movement toward
cross border trading utilizing the common
trading platform model from the SECI
project, and the further harmonization of
rules and regulations in the FEAS Rule Book
through adoption of the 28 OECD/FEAS
developed guidelines, ‘best practices’
manual for stock exchanges in transition
economies. Other specific achievements
promoted the growth of stock exchange
operators through extensive training
programs, such as the joint OECD SME
development project and international
associations with organizations such as the
World Bank.
However, as our markets continue to step up
to the challenges of the global arena, the
greater importance will be to turn our focus
toward our vision for the future and to
participate in the regional development over
the next 5-10 years. Our continued
commitment to our 5-year strategic plan is
designed to achieve the objectives specified
within the mission of the Federation and to
attain a greater role in the competitive global
market environment. Our focus over the next
5 years will concentrate in the area of
promoting corporate governance, facilitating
timely disclosure, achieving effective
dissemination of information, attaining
regional convergence in listing requirements,
settlement, trading rules and software,
creating greater awareness and visibility for
the region’s stocks and investment
opportunities, promoting the listing of
‘investment grade’ companies in the region’s
markets and creating linkages among the
region’s intermediaries, data providers,
settlement and custody institutions and stock
exchanges while encouraging cooperation
among securities commissions. Please see
the Philosophy section of our Semi Annual
Report to obtain the complete set of
objectives for the Federation.
The individual future outlook of our markets,
as contained in the member profile pages,
shows that there continues to be work
toward the challenges of member markets in
providing competitive and viable financing
options to both the government and private
sectors, while enhancing operations through
technology and expanding services to
market participants. The main effort
continues to focus on the areas of increased
transparency through expense in
infrastructure and developing regulations to
promote stronger corporate governance.
It is with great pleasure that we welcome our
newest members and we look forward to
their contributions to our organization.
I would like to take a moment to extend
my heartfelt thanks to our Contributors:
Takasbank, Computershare, Tata Consulting
Services, Dow Jones Indexes and
STOXX Ltd., Garanti Securities, TurkDEX,
Is Investment, DenizBank FSG, the World
Federation of Exchanges, and Tayburn
Kurumsal (also the publisher of this report).
We hope that you will take a moment to visit
our contributor section in the FEAS website
at www.feas.org and read their articles in the
following pages.
In closing, I want to recognize the efforts of
all our members in achieving our regional
objectives through their commitment and to
the Secretariat for its success in maintaining
our cohesive organization. As we approach
our 11th year anniversary, our formula for
achievement will be applied toward our
development for the future.
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