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FEDERATION OF EURO-ASIAN STOCK EXCHANGES SEMI ANNUAL REPORT MAY 2005
FEDERATION OF EURO-ASIAN STOCK EXCHANGES
Task Forces
As a result of combining the Working
Committees, 12 Task Forces were formed to
carry out the mandates of the Executive
Committee with the approval of the General
Assembly. Due to the fact that some Task
Forces completed the tasks assigned to
them, only the remaining active Task Forces
are listed below.
Task Force 0401 – Semi Annual Report
(2005 Completion)
The Yearbook has been changed from an
annual report to a semi annual report that will
include two pages per country in order to
highlight the economic and political
developments in each member’s respective
country. In addition the members’ pages have
been redesigned to include only the most
recent and up to date information. It was
agreed upon that the first publication would
be printed in the April/May time frame and the
second publication would be available in
electronic format in the September/October
time frame.
Task Force 0402 – Post General Assembly
& Post Working Committee IT Training (Led
by FEAS Secretariat)
After the General Assembly Meeting in
Zagreb, Croatia, presentations were made by
two of the FEAS Sponsors Computershare
and Hewlett Packard. For the IT Conference
that will be hosted by the Bulgarian Stock
Exchange; presentations by FEAS Members,
Consultancies and IT Vendors will be made.
Some of the vendors that will be presenting
include: Computershare, OMX Technology,
Options Industry Council, Symex Economics,
and Tata Consultancy Services.
Task Force 0404 – Media (Led by Muscat
Securities Market)
It has been recommended for approval by the
General Assembly that a group of FEAS
instructors or program materials could be sent
to the stock exchanges to increase the
proliferation of Media related information and
training materials. Media conferences will be
held in Istanbul, Turkey and Muscat, Oman
during 2005.
Task Force 0406 – Regional Indices (Led
by Tehran Stock Exchange)
FEAS members have decided to create an
index of FEAS members, a regional index. It is
planned that this index will at first be noninvestable,
but may at a later date be
transitioned to an investable index. Additional
funding and resources have been allocated to
this task force based on the importance given
to it by members.
Task Force 0411 – Market Principle (Led by
Istanbul Stock Exchange)
In conjunction with the World Federation of
Exchange’s effort to update their market
principles, FEAS members are working to
contribute ideas and information to this end.
Task Force 0412 – Corporate Governance
(Led by Karachi Stock Exchange)
All members in the FEAS region place a
strong emphasis on Corporate Governance.
For this reason a task force was created to
provide a vehicle for informing all member
stock exchanges of international regulations
and practices regarding corporate
governance. Further, Karachi Stock Exchange
has volunteered to fund their country’s
corporate governance expert to travel
anywhere necessary to disseminate all
relevant information about corporate
governance that it has. The Bucharest Stock
Exchange will also host a conference on
Corporate Governance in June of 2005.
2004 Mandates:
• Publication and Distribution of the Semi
Annual Report in April/May and
September/October;
• Hold an IT Conference hosted by the
Bulgarian Stock Exchange;
• Hold a Media Conference hosted by the
Muscat Securities Market;
• Create a Regional Index for FEAS;
• Hold a Corporate Governance Conference
to be hosted by the Bucharest Stock
Exchange;
• Work with the WFE to update Market
Principles;
• Completion of the ongoing revenue analysis
from 1999 through 2004; and
• Distribution, tabulation and reporting on the
results of the World Federation Trading Survey
with comparative results.
FDC & SPECIAL PROJECTS
FEAS DATA CENTER (FDC)
A full system test was completed as of 1
September 2003 and the FDC began
implementation with the Macedonian SE in
September 2003. The system went live on
September 15th. Implementation of all
members will take a phased approach
beginning with 25% of FEAS members
implemented by the 1st quarter 2004:
Amman, Bulgarian, Istanbul, Lahore,
Macedonian and Zagreb Stock Exchanges.
In 4th quarter of 2004, Belgrade Stock
Exchange implemented the FDC and in 2005
Amman Stock Exchange plans to implement
the FDC.
The FDC includes market statistics, company
data, ratios, stock price information, exchange
rates and sector data contained in 14
predefined reports. To access the FEAS Data
Center (FDC) go to:
http://128.121.21.20/feasdatacenter.org/
reports/countrylist.asp or go to www.feas.org
and click on the FEAS Members drop-down
menu.
OECD/ISE PRIVATE SECTOR
DEVELOPMENT (PSD)
The Federation, in conjunction with both the
ISE and the OECD, has jointly designed and
implemented a program entitled “Private
Sector Development” - a comprehensive
three-year program dealing with the
development of Small to Medium Enterprises
(SMEs), while enhancing the attractiveness of
the FEAS region through the development of
‘best practices’ for stock exchanges in
transition economies.
SME Development: Regional work as the
follow-up of the meeting entitled “Business
Incubation, Finance and Growth in Emerging
Markets” of 2002 was conducted. Emphasis
was given to the development of financing
models and methods for SME’s in Turkey,
which can be successfully applied to the
FEAS region. The project was finalized in a
meeting held in the spring of 2004.
Best Practices: This project deals with
strategies to promote the role of stock
exchanges in the ongoing financing needs of
member markets. A set of best practices for
the development of stock exchanges was
prepared and distributed in 2001. A total of 28
best practices were set forth as a basic set of
legal and market guidelines, which cover key
regulatory and institutional issues. A selfassessment
workshop on FEAS member
implementation of the best practices on
clearing, settlement custody, and registration
was held on 5-6 February 2003 in Almaty,
Kazakhstan. The working group made a
thorough evaluation of the assessment
methodologies developed by international
assessment organizations in order to come
up with a self-assessment method that targets
priorities applicable to the FEAS region. It was
decided that a draft questionnaire for selfevaluation
would be sent out to FEAS
members for their views. In 2004 the OECD
was asked to prepare a follow-up document
which can be used by FEAS members for self
evaluation of Best Practices Compliance. The
results of this survey will be published in the
self-evaluation report in 2005.
SECI MODEL
SECI is a UN project, the Southeast European
Cooperative Initiative, which targets
cooperation among securities markets of
Southern Europe, most of which are FEAS
members. The project is taken up by two
groups of securities markets, that is, the stock
exchanges and the regulators.
The SECI project is expected to be the
foundation of the FEAS common trading
platform. The initial stage of the SECI project
is the groundwork prepared by the Athens
and Istanbul Stock Exchanges. A MoU was
signed between regulatory bodies of the
Turkish and Greek capital markets in 2001,
and working groups from both exchanges
examined issues regarding technical links,
regulatory environment, and trading and
settlement procedures. Once all stages of
cooperation and linkages are implemented
between Athens and Istanbul, the other
exchanges of the region will be invited to join
the existing set up.
As a side product of SECI, another initiative
for creating a common stock index of Greek,
Turkish and Israeli blue chips exists. The three
most important exchanges of South East
Europe-South East Mediterranean held a
trilateral meeting for the first time with the
objective of discussing ways to promote
cooperation.
The Federation continues to work toward a
common trading platform within the region
and the SECI organization, which will pave the
way for organizational and structural efforts in
this area. As noted above FEAS members
have agreed on creating a regional index,
cross border trading is also being explored by
several member exchanges as a test for
further implementation across all FEAS
members.
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