KYRGYZ STOCK EXCHANGE
In 2003 there were many events worth special
attention as they have significantly expanded
the prospects for the development of the
Kyrgyz Stock Exchange (KSE).
Amangeldy Muraliyev
President
New rules for trades
complying with the
higher technical
capabilities of the
Kyrgyz Stock Exchange
were adopted in
October 2003.
In May 2003 we switched to a modernized
software product, and the qualitative level of
our services has increased as a result. The
introduction of the new automated trading
system became a reality due to the Kazakhstan
Stock Exchange’s use of a similar software
product. Following this, new rules for trades
complying with the higher technical capabilities
of the KSE were adopted in October 2003.
During the past year we continued work within
the project to circulate state securities through
the KSE, although for a series of unbiased
reasons the given project has not been
completed and is to be continued in 2004. It is
assumed that state coupon bonds, with an
average term of circulation designated specially
for the given project, will soon be issued, and
some Kyrgyz commercial banks will start
operating in the market along with brokerage
institutions.
The facilitation of the new Law on Joint Stock
Companies was one of the most significant
events affecting the KSE in 2003. This event
can be partially merited to the specialists of the
KSE who had been actively participating in the
drafting and consideration of the law in 2002.
With the adoption of the given law, Kyrgyzstan
entered a new phase of corporate governance
development.
HISTORY AND DEVELOPMENT FUTURE OUTLOOK
The Kyrgyz Stock Exchange (KSE) was founded
in 1994. The official opening and the first trade
in stocks took place in May 1995, while a
privatization process was in full swing in our
country. Priorities for our Exchange in 2004 are:
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
17 shareholders and 10 members.
A significant contribution has been made by the
US 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.
FEDERATION OF EURO-ASIAN STOCK EXCHANGES YEARBOOK 2003/2004
PAGE 58
• establishment of remote access with
brokerage companies;
• introduction of a cryptographic information
defense system to be used in the process of
trading;
• application of further efforts to expand the
range of financial instruments traded through
the Exchange;
• implementation of new forms and methods
of information disclosure to secure transparent
operation of listed companies; and
• formation of services on the state securities
market.