FEDERATION OF EURO-ASIAN STOCK EXCHANGES
SEMI ANNUAL REPORT OCTOBER 2008
ARMENIAN STOCK EXCHANGE
Armenian Stock Exchange becomes owned
by the world’s largest exchange company
NASDAQ OMX Group Inc.
Vahan Stepanyan
Chief Executive Officer
The beginning of the year 2008 was marked
with a large scale merger in the global capital
market, that between the largest US Exchange
operator NASDAQ and the Nordic exchange
operator and technology provider OMX. As a
result, Armenian Stock Exchange jsc (Armex)
previously owned by OMX has become a part
of the world’s premier exchange company,
NASDAQ OMX Group Inc., which has
presence in over 20 countries and over 3,900
company listings across the world.
One of Armex’s major achievements in the first
half of 2008 was the successful launch in
January of stock exchange trading in
government bonds. As of June 30, total value
traded in this instrument reached US$ 1.7
million. The concept of market making for
government bonds was also been introduced,
and there are currently five market makers
working in the regulated marketplace.
As of today, corporate bonds market was also
revived significantly, showing eleven times
growth of value traded amounting to US$ 3.79
million (as compared to US$ 0.27 million in
H1, 2007). Along with fixed income
instruments, foreign exchange trading has also
expanded during the first half of 2008. FX
value traded showed outstanding results:
value equal to US$ 442.2 million and EUR 520
thsnd was traded, which represents a nearly
two times growth for trading in US Dollars and
six times growth for trading in Euro over the
previous year’s same period.
Unlike other markets, this year’s equities
trading at Armex decreased by 69% as
compared to the first half of previous year.
This happened primarily due to a sharp
reduction in the number of listed companies:
after changes in securities market regulations
only the most efficient and sustainable
companies could preserve their listed status.
This, despite the said reduction in trading in
the short run, is expected to have a positive
overall effect on the development of the
Armenian securities market in the future.
Armex sees encouraging securities IPOs as its
highest priority for the rest of 2008.
Collaboration with the stakeholders, including
broker companies, banks, and issuers is
currently underway, and the first IPO is
expected to happen by early 2009.
The presence of NASDAQ OMX in Armenia
and its joining the efforts with Armex is highly
promising for the revival of the Armenian
capital market. Together, we hope to be able
to create an efficient market that would
consistently contribute to the growth of the
Armenian economy.
FUTURE OUTLOOK
In 2008, Armex plans to:
• complete the integration with NASDAQ OMX
Group;
• develop and introduce new clearing
mechanisms;
• facilitate the launch of trading in securities on
a non-covered basis;
• establish a Guarantee Fund to increase
investor protection;
• launch the first IPOs;
• undertake steps to increase public awareness
about the capital market.
CONTACT INFORMATION
Contact Name Mr. Armen Melikyan
E-mail [email protected]
Website www.armex.am
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