FEDERATION OF EURO-ASIAN STOCK EXCHANGES > YEARBOOK 2002/2003 > PAGE 19
ARMENIAN STOCK EXCHANGE
LETTER FROM THE CHAIRMAN
Our mission is to ensure a favorable environment for
Armenian enterprises to raise capital for their
development and to provide local and foreign
investors with the best opportunities to trade in our
domestic market.
In 2002, the Armenian Stock Exchange
(ARMEX) became a member of the Federation
of Euro-Asian Stock Exchanges.
The Armenian Stock Exchange has been
operating for nearly two years now. Our
mission is to ensure a favorable environment
for Armenian enterprises to raise capital for
their development and to provide local and
foreign investors with the best opportunities
to trade in our domestic market. Since 6 July
2001, when the very first trading session was
held, the exchange has gone a long way to
develop and maintain an adequate
environment, including regulations and
technology, for fair, transparent and efficient
trading in the securities market. With the
support of international financial institutions
and foundations, much has been achieved in
the creation of a viable and transparent
marketplace in Armenia and the establishment
of an appropriate market infrastructure. Owing
to these joint efforts, relevant trading rules,
procedures and regulations were developed
and implemented, a securities listing process
was initiated; the number of transactions and
the volume of securities traded in the
marketplace had been growing throughout
2002, and by year end, market capitalization
exceeded approximately US$ 10 million.
intend to continue our efforts in accomplishing
these goals, as well as to enhance the role of
ARMEX as a conduit in directing investments
in Armenian businesses. We are also looking
forward to cooperating closely with FEAS and
its members.
Edward Sandoyan
Chairman of the Supervisory Board
Numerous steps are still to be undertaken to
expand activities in the financial market,
diversify the range of financial products and
instruments, and ensure that the technology
required is in place to serve the market
transactions and investment requirements of
both companies and investors. In 2003, we
HISTORY AND DEVELOPMENT
The Armenian Stock Exchange (ARMEX) is the
only stock exchange currently operating in
Armenia. ARMEX is the successor of the
Association of Securities Market Participants,
which was established in Armenia in 1997. In
December 2000, it was renamed the Armenian
Stock Exchange, and on 13 February 2001, the
latter was officially registered by the Securities
Commission of the Republic of Armenia as a self-
regulatory organization.
ARMEX is a voluntary association of broker
(dealer) companies and currently has 19
members. The self-regulation principle provides
each member company with an equal right to
participate in the management of the Exchange.
The supreme management body of ARMEX is
the General Meeting of Members, which elects
the Supervisory Board. ARMEX operates
pursuant to the provisions of the Civil Code of
the Republic of Armenia, the Law of the Republic
of Armenia “On Regulation of Securities Market”
and its Charter. ARMEX is subject to regulation
by the state. In Armenia, the Securities
Commission of the Republic of Armenia is the
competent state authority to regulate the
activities of the stock exchange. By approving
legislative and other legal documents, the
Commission establishes rules by which the stock
exchange should operate. The most important role that ARMEX has to play
in today’s economy is to provide Armenian
companies with an opportunity to raise new
capital by carrying out deals in the securities
market, thereby expanding their businesses and
getting access to more extensive business
opportunities.
to improve the accessibility of market and
company information utilized by issuers,
intermediaries and investors; to cooperate actively with stock exchanges in
the Caucasus and CIS countries, as well as with
professional associations worldwide and their
members.
FUTURE OUTLOOK
Plans for 2003 are:
to continue to create a favorable environment
for the growth and development of the securities
market;
to enhance domestic corporate equity trading;
to introduce new products and financial
instruments that are of interest to domestic and
foreign investors;
to become the primary source of corporate data;
to continue the development and monitoring of
a fair, transparent and efficient securities market;
and