FEAS Yearbook FEAS Yearbook 2003 | Page 6

FEDERATION OF EURO-ASIAN STOCK EXCHANGES HISTORY The Federation of Euro-Asian Stock Exchanges (FEAS) was established on 16 May 1995 with 12 founding members and has grown to 25 members in 23 countries. Membership in the Federation is open to emerging stock exchanges in Europe and Asia. Until May, 2005 the position of President and Vice President will be held by the Istanbul and Ukrainian Stock Exchanges, respectively. The Governing Body of FEAS is the General Assembly, comprised of all 25 members, which meets once annually in a member country. The Executive Committee, made up of 12 members, is responsible for developing Federation policies, making major administrative decisions as mandated by the General Assembly, approving the content and scope of tasks assigned to the Working Committees, and making recommendations to the General Assembly. Currently, the Federation has three working committees: Rules & Regulations, Technology and Marketing. PHILOSOPHY MISSION STATEMENT The mission of FEAS is to create fair, efficient and transparent market environments, with little or no barriers to trade, between the FEAS members and their operating regions. Harmonization of rules and regulations and adoption of new technology, for trading and settlement, by member securities markets, will facilitate the objectives of FEAS by promoting the development of the member markets and providing cross border trading opportunities for securities issued within FEAS member countries. 5-YEAR STRATEGIC PLAN In accordance with the Mission Statement, the 5-year strategic objectives systematically approach compliance within the long-term mission of the Federation and will be the key focus over the next 5 years. Objective I: Promote ‘corporate governance’ in listed companies as indicated in the joint FEAS/OECD “Best Practices for the Development of Stock Exchanges in Transition Economies” guide. Facilitate timely disclosure of material events and achieve effective dissemination of information. Objective II: Achieve convergence among FEAS members in: • listing requirements, • the settlement cycle, and • trading rules and software. Objective III: Promote mechanisms for reliable, transparent and continuous trading and settlement. Objective IV: Create greater awareness and visibility for the region’s stocks and investment opportunities. Objective V: Help promote the listing in home markets of ‘investment grade’ companies in the region’s markets. Objective VI: Help create linkages among the region’s: • intermediaries, • data providers, • settlement and custody institutions, • stock exchanges; while • encouraging cooperation among securities commissions. Objective VII: Promote and encourage research and training for FEAS members and their personnel. REGIONAL DEVELOPMENT Regional development highlights the 2003 achievements and provides a summary of continuing programs into 2004, as well as the strategic objectives over the next 5 years. BILATERAL INITIATIVES PROGRAM The Federation initiated in 2002 and fully funded a Bilateral Initiatives Program to facilitate, on a bilateral basis, the exchange of personnel of one FEAS member with another for the purpose of trading information and experience on a specific topic(s) of interest to both exchanges. Almost all Federation members have now participated in this project, which will continue during 2004. WORKING COMMITTEES RULES & REGULATIONS (R&RWC) During 2003 the R&RWC made strides in areas of “Best Practices” self-assessment workshops to determine member adoption of the 28 guidelines, organization of a regional meeting of top issuers, regulators and stock exchange intermediaries and continuation of the stock exchange revenue and expense analysis for the Fiscal Year 2002 with comparisons to 5 previous years – prepared by the FEAS Secretariat. 2004 Mandates: • Completion of the ongoing revenue analysis through 2003. Comparisons to World Federation results are being explored. • Member assessment on the implementation of “Best Practices”, a joint FEAS/OECD project, to be completed in 2004. • Content review of the FEAS Rule Book to bring it more in line with international practices. • Distribution, tabulation and reporting on the results of the World Federation Trading Survey with comparative results. CONTACT INFORMATION Contact Name Mr. Aril Seren Secretary General E-mail [email protected] Website www.feas.org FEDERATION OF EURO-ASIAN STOCK EXCHANGES YEARBOOK 2003/2004 PAGE 4 MARKETING (MWC) During 2003 the MWC continued to update the regional marketing strategy in line with FEAS marketing efforts and the new 5-year strategic plan, including market linkages and assisted with the implementation of the FDC by assessing and testing data definitions and updating reporting options. 2004 Mandates: • Development of a regional marketing strategy including preparations for a joint (top) issuers/brokerage and intermediaries conference in the region •Completion and promotion of the FEAS Yearbook 2003/2004. •Continuation of the FEAS funded bilateral exchange program into 2004. This project promotes information/cultural exchange between FEAS members. •Promotion of FEAS members and their investment products through the FEAS website, specifically the utilization of the newly implemented announcement section. TECHNOLOGY (TWC) In 2003 a methodology to facilitate the implementation of the FDC, which is both easier and at near zero cost to members, was developed in the 4th quarter of 2002 for a 2003 implementation. Other achievements were to provide up-to-date IT training for FEAS members and to organize a team of IT and business experts (from within FEAS members) to provide expertise to those exchanges that have specifically asked for assistance. Potential target issues include FDC and CTP requirements to be incorporated with, but not limited to: project management, trading systems, back office systems, market data and WAN and will be administered within the 2004 bilateral initiatives program. 2004 Mandates: • FEAS Data Center implementation of a 25% completion rate in 2003,with the remaining 75% in 2004. • Creation of a regional team of IT and business experts to assist FEAS members with specific issues from within their exchange. The project will be funded through the bilateral exchange program. • IT training options to be combined with regional IT conferences. 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 of 2004: Amman, Bulgarian, Istanbul, Lahore, Macedonian and Zagreb Stock Exchanges.