FEDERATION OF EURO-ASIAN STOCK EXCHANGES > YEARBOOK 2002/2003 > PAGE 79
“TOSHKENT” REPUBLICAN STOCK EXCHANGE
LETTER FROM THE CHAIRMAN AND CEO
Thanks to the dedicated hard work of our staff,
the UZSE witnessed unprecedented growth in
both quantity and volume of transactions.
Despite difficult economic circumstances of
the transitional period in Uzbekistan and
instability in Central Asia, the Toshkent
Republican Stock Exchange (UZSE) has
maintained its already established key role in
Uzbek’s capital markets.
In 2002 the UZSE made changes to the stock
trading rules, improved the electronic
interaction of the exchange with depository
and clearing houses as part of its efforts toward
reaching the established goals of making the
UZSE a modern and efficient exchange.
Even though there have not been any major
changes in the technical infrastructure, the
UZSE took notable steps toward achieving
these goals. A bonus program, an endeavor
concentrated on involving individual investors
in capital markets, is an excellent example.
Another major change was the introduction
of corporate bonds trading through the UZSE.
The educational sphere was also targeted.
A number of introductory and special courses,
widely believed to improve coordination
among participants of the economy and
increase the role of capital markets, were
organized for various institutions. in terms of transaction volume. In 2001 trading
reached US$ 17.9 million at the UZSE. The
volume of hard currency transactions
increased by 114% compared to 2001. The
quantity of shares traded intensified and
doubled. A remarkable increase of 279% on
the secondary market was achieved even
though it only made up 29% of total exchange
turnover.
Thanks to the dedicated hard work of our
staff, the UZSE witnessed unprecedented
growth in both quantity and volume of
transactions. Today, the UZSE continues its efforts toward
developing its activities in improving the
capital market infrastructure.
This past year, a total of 5,669 transactions
were handled, reaching a record volume of
over US$ 20.5 million. Never before in its
history has the UZSE attained such high results
Tahir Tokhtabaev
Chairman and CEO
HISTORY AND DEVELOPMENT
A stock department was established in 1991,
which became a pioneer of Uzbekistan’s
securities market, and was eventually
transformed in 1994 into the Toshkent
Republican Stock Exchange (UZSE) - a closed
joint-stock company. Conventionally, it is also
known as the Uzbekistan Stock Exchange
(UZSE). The UZSE became an open type joint-
stock company in 1998. Establishment of the
UZSE was closely connected with its market
performance and a policy of establishing public
joint-stock companies on the basis of privatized
government enterprises. Currently, the UZSE
has 37 shareholders.
Throughout its development, the UZSE
completed a complex infrastructure, a central
office in Tashkent and branches and brokerage
offices in all regions nationwide. In 1994, 12
brokerage offices were members of the
exchange, and as of 31 December 2002, this
number had increased to 86. listing" of more than 200 enterprises has been
prepared and advertised through the Internet.
On 1 February 1998, a listing procedure was
introduced. On 1 September 1998, shares of the
first listed company began trading on the UZSE.
A specialized trading platform, for the purpose
of selling shares of privatized enterprises to
foreign investors for hard currency, was launched
on 1 January 1999. The exchange has developed weekly ratings of
exchange activities by regions and industries on
such parameters as attraction of investors, stock
popularity, confidence among the population,
and volume of investments. It has enabled
investors to have an actual picture of equity
market dynamics in Uzbekistan.
In 2001 work on exchange information and
electronic trading systems continued. The
website at www.uzse.com started operations in
2001, and today the UZSE continues to work on
a transition to modern web-technology trading.
In addition, there is a new system that allows
investors to receive "video-listing" through the
Internet and consequently make an informed
decision prior to visiting the place. A "video- Founded eight years ago, and being the first
stock exchange in Uzbek history, the UZSE is
actively taking part, always keeping in mind its
major role, in the development of the Uzbek
capital market.
to promote informational and educational
activities in order to increase consciousness of
investors to the constantly developing Uzbek
capital market; to develop recently established bond trading.
FUTURE OUTLOOK
Primary objectives for the coming year are along
the following lines:
to continue efforts to improve interaction
between the UZSE and its members in order to
maintain effective stock trading;
to introduce new financial instruments and create
better conditions on the trading floor for traders;
to strengthen cooperation with key capital market
participants and foreign exchanges;