FEDERATION OF EURO-ASIAN STOCK EXCHANGES > YEARBOOK 2002/2003 > PAGE 49
KYRGYZ STOCK EXCHANGE
LETTER FROM THE PRESIDENT
Currently, according to an adopted
understanding, a portion of the primary and
secondary state securities market will be
transferred onto the KSE.
The year 2002 was a constructive year for the
Kyrgyz Stock Exchange (KSE). Against a
background of unstable development in the
Kyrgyz economy and a business recession,
we were working at holding our positions in
the market.
During the year work was accomplished on
switching to new software allowing the KSE
to achieve global norms and standards on the
securities market. Technical equipment, for
the trade process, was enhanced and
prerequisites for the transition to an electronic
trade book, between the Exchange and trade
participants, were created.
During the year we were active participants
in the law drafting process to update
legislation regulating the securities market
and corporate legal actions in the Kyrgyz
Republic. extension of a wider spectrum of financial
instruments to be traded over the Exchange;
Reaching an agreement to trade state
securities on the trading floor of the KSE
became a significant achievement, as currently
the state securities market has a separate
infrastructure, which is under the supervision
of the National Bank of Kyrgyzstan. Currently,
according to an adopted understanding, a
portion of the primary and secondary state
securities market will be transferred onto the
KSE, which will allow for fortification of our
image, as well as deriving income from
additional sources. enhancement of requirements toward listed
companies targeted for pension portfolios in
the post pension reform environment;
improvement in the state securities market.
Amangeldy Muraliyev
President
For 2003 the following priorities are to be
emphasized:
HISTORY AND DEVELOPMENT
The Kyrgyz Stock Exchange was founded in
1994. The official opening and first trades in
stocks took place in May 1995, while a
privatization process was in full swing in our
country.
At the initial stage of its existence and up until
2000, the KSE had functioned as a non-profit
organization with a total membership of 16. In
May 2000 the KSE was transformed into a joint-
stock company; simultaneously we acquired one
of the largest shareholders and a reliable partner
in the Istanbul Stock Exchange, which has
actively assisted us in improving our activities.
In 2001 the Kazakhstan Stock Exchange became
a shareholder allowing the KSE to significantly
increase its technical software potential. At
present the KSE is a closed-type non-profit joint-
stock company with 18 shareholders and 12
members. A significant contribution has been made by the
United States Agency on International
Development (USAID) for the sake of our
continued development. Thanks to the USAID,
the KSE has obtained powerful financial support
that has allowed our exchange to become
independent.
in accordance with the new automated trading
system make available remote trading capabilities
for members; come to an agreement with government agencies
to float both primary and secondary issues of
state treasury bills over the KSE.
FUTURE OUTLOOK
Plans are to:
introduce a new automated trading system;
implement dematerialization;
improve requirements of listed companies;
participate in the state privatization program;
and