FEDERATION OF EURO-ASIAN STOCK EXCHANGES
ANNUAL REPORT APRIL 2009
“TOSHKENT” REPUBLICAN STOCK EXCHANGE
Bakhtiyor Khudoyarov
Chairman
As a result of all of the hard work of the staff
of the “Toshkent” Republican Stock Exchange
(TRSE) in 2005, the TRSE has achieved
certain positive results. In year 2005, 5814
transactions with the shares of 643 joint-stock
companies and 9 transactions with corporate
bonds have been carried out on the trading
platforms of the TRSE.
• Trade with corporate bonds accounted for
1%;
• Shares of the privatized state enterprises
accounted for 30.5%;
• Shares of the privatized state enterprises
obtained by foreign investors for the hard
currency accounted for 1.2%;
• IPOs and other additional issued shares of
the joint-stock companies for national
currency as well as for the hard currency
accounted for 4.1%;
• Shares in the secondary market accounted
for 38.7%; and
• Shares in the secondary market obtained by
foreign investors for hard currency accounted
for 24.5% of the total volume.
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 (TRSE), a closed
joint-stock company. The TRSE became an
open joint-stock company in 1998.
Establishment of the TRSE was closely
connected to its market performance and a
policy of establishing public joint-stock
companies on the basis of privatized
government enterprises. Currently, the TRSE
has 39 shareholders.
Throughout its development, the TRSE
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 the 1 July 2005, this
number had increased to 61.
On 1 February 1998, a listing procedure was
introduced. On 1 September 1998, shares of
the first listed company began trading on the
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In 2006 the TRSE plans to increase the
volume of trade with securities. Most
importantly, we will carry out technical
modernization of the system of electronic
exchange trades.
Although in comparison with the
corresponding period of 2004, the trading
volume of shares has increased slightly, the
trading volume of shares for hard currency
has increased 7.4%. Our efforts about the
increase of the secondary market have been
proving themselves. In the year 2005 trade
volume with shares in the secondary market
increased 15%.
We expect that the further development of the
secondary market will keep this pace.
Currently, there are securities of 700
companies in circulation in the secondary
market, which should considerably increase
the share of securities in the secondary
market.
In 2006 the TRSE plans to increase the
volume of trade with securities. Most
importantly, we will carry out technical
modernization of the system of electronic
exchange trades:
TRSE. 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.
In 2001, work on Exchange information and
electronic trading systems continued. The
website www.uzse.uz started operations in
2001, and today the TRSE continues work on a
transition to modern web-technology trading. In
addition, the website reflects daily information
on IPOs and other JSCs. Investors may follow
all the current changes and information on
listed companies, share price and amounts
standing out.
In 2003 new listing procedures were adopted at
the TRSE where the requirements for the official
as well as unofficial listing were stated.
Currently the four largest companies of
Uzbekistan are listed in Class “A” of the official
listing.
Founded 12 years ago as Uzbekistan’s first
stock exchange, the TRSE is actively taking
part, always keeping in mind its major role, in
the development of the Uzbek capital market.
1. Perfection of the technology of exchange
trades:
First, the TRSE will create of a platform for the
secondary circulation of shares in the
secondary market, working on technology
based on simple auction. Second, the TRSE
will create a special platform on fulfillment of
transactions.
2. Modernization by updating the equipment.
The TRSE will complete modernization of
equipment in all branches and in the
exchange itself.
3. Modernization of trading system of the
TRSE.
The TRSE will translate into a new
technological platform the whole trading
system of the Stock Exchange and create a
uniform database. Further the TRSE will
endeavor to open facilities for regional broker
offices to access the trading system from
distance and implement maintenance of a
closed network of data transmission for all
regional branches.
FUTURE OUTLOOK
The priority directions of the development of the
TRSE in 2006 will become the opening of an
additional trade sections on transactions for
shares of unlisted companies.
Additionally, the TRSE is planning to change
the software system and bring it to standards in
accordance with Rules of the Stock Exchange,
as well as prepare new, more complex
software, in particular:
• development of the module on conclusion of
turnip-deals, based on technology of continual
double auction;
• modernization of software system, based on
technologies of the simple auction; and
• full modernization of software system of the
TRSE, with transition on new technical platform.