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FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT MAY 2005
BELGRADE STOCK EXCHANGE
Gordana Dostanic
Managing Director
During 2004 many fundamental investment
laws were adopted, which set a legal
foundation for the transitional changes and
market economy in progress. It is expected
that the aforementioned legislative activities
will have a strong influence on the economic
flows in the year to come.
2004 has also seen a deceleration in the
privatization process, as well as a decrease
in industrial growth and exports, which
brought with it slower growth of employment
rates and higher inflation than projected.
These circumstances made a less than
favorable environment for the development
of the Belgrade Stock Exchange (BSE), and
HISTORY AND DEVELOPMENT
The BSE was first founded on November
21st 1894, but the first transactions were
conducted in January 1895. The last
transactions on the BSE were carried out in
April 1941. The Exchange continued to exist
formally until 1953, but at that time there
were no trading activities.
• The BSE was reestablished in 1989 as
Yugoslav Capital Market, in the accordance
with the Capital and Money Market Law.
The name was changed back to Belgrade
Stock Exchange in 1992. The most
important events in recent history were:
• September 2002 – trade in Republic of
Serbia foreign currency savings bonds
started;
• March 2003 – Introduction of continuous
trading method for Republic of Serbia
bonds;
• September 2003 – The celebration of 110
years from founding of Belgrade Stock
Exchange started with the exhibition in Nis;
• October 2003 – testing of the system for
remote trading started.
PAGE 54
During 2004 many fundamental investment
laws were adopted, which set a legal
foundation for the transitional changes and
market economy in progress.
have left their mark on the otherwise
dynamic development of the only financial
market in Serbia.
New relationships, new organizational
principles and new terminology brought into
Serbia by the market transition process have
found a fertile ground and rooted deeply in
everyday business and life. Even though the
citizens in Serbia usually do not have
substantial savings, they are becoming more
interested in the movements on the Stock
Exchange and are moving their savings from
banks to investing it in the capital market.
Other factors that have influenced the growth
and development of the financial market in
During 2004 many landmark events
occurred. On March 2nd, after a long period
of testing, the system for remote trading
became operational. In July all equities
listed on the BSE started daily trading.
At that time, there were 190 companies
listed on the BSE. On the 18th of October 4
companies transferred to a continuous
trading system, which was, until then, used
only for government bonds of the Republic
of Serbia. By the end of the year, three more
companies have changed their trading
system from daily to continuous trading.
On the 16th and 17th of November The
Third International BSE Conference was
held, as a culmination of the celebration of
110th anniversary of BSE. On the 13th of
December, after six months of testing,
BELEX fm, the free market index, was
published for the first time.
the past year were new legislation
concerning investment funds, changes in
insurance legislation and the dispersion of
ownership rights through the privatization
process.
Even though turnover was lower in 2004, in
comparison to 2003, the activities on the
Belgrade SE were very dynamic. This
resulted in greater independence of the
Stock Exchange and the development of
new technologies, which in turn helped
educational and informational activities.
There are still big developments to come on
the Belgrade Stock Exchange.
FUTURE OUTLOOK
In 2005, BSE will:
• continue development of the BELEX client
application’s functionality and start of project
for automating the control function in the
BELEX trading platform;
• define requests for redesign of the BELEX
trading platform in whole;
• develop the listing function, especially
concerning enlistment on the A and B lists;
• monitor the BSE Rules and their
application, in order to eliminate possible
problems and improve securities’ liquidity;
• motivate the most successful companies
to enlist on the A and B lists and explore the
possibilities for introducing new securities
and other instruments on the market;
• perform liquidity analysis for certain
securities and programs for increasing their
liquidity;
• develop reporting capabilities through
various types of reporting: web presentation,
data vending, publications, and cooperation
with the media;
• create and implement the BSE Academy
program;
• maintain and enhance the communication
with the BSE Members, and activities in
presenting the Exchange to the general
public in Serbia and abroad;
• develop of Human Resources; and
• take an active part in the international
meetings organized by FEAS, FESE or
similar international organizations and
organize one or more international or
regional meetings, with the goal of
promoting international cooperation.