FEDERATION OF EURO-ASIAN STOCK EXCHANGES
ANNUAL REPORT JUNE 2012
IRAQ STOCK EXCHANGE
ISX introduced a new index in June 2010
after the Automation went live.
Taha Ahmed Abdul Salam
CEO
Iraq Stock Exchange (ISX) has been
established under the Law (74), on April
18th,2004 and started its operations in June
2004. The ISX operates under the oversight
of the Iraq Securities Commission (ISC).The
exchange is a self-regulated organization,
independent financially and administratively
from the Iraqi government, It is organized as a
non-profit entity that is owned by its members,
namely licensed brokerage firms. It is regulated
by the Iraq Securities Commission and follows
the operational procedures outlined in its by-
laws that are fully compliant with the Iraqi
Securities Law.
HISTORY AND DEVELOPMENT
1. For the period of 1992-2003 the Baghdad
Stock Exchange was operating and was
well known.
The previous Baghdad Stock Exchange
was established by the law No. 24 in 1991.
The market was related to the government
and it listed (113) different companies,
some private and others from the mixed
sector. During that period, especially in
2003, the market had gained an annual
trading volume exceeding, US$17.5 million.
However, this market was closed by a
decision of its Governing Council in March
19, 2003.
2. Establishment of Iraq Stock Exchange
On 18 of April 2004, the temporary law
No. 74 was issued. It gave the authority to
establish two important capital development
bodies concerning financial sectors, they
are:
A. Iraq Stock Exchange (ISX).
B. Iraq Security Commission (ISC).
3. Meaning of Iraq Stock Exchange
The ISX is an entity capital market not
related or powered by the government. It
is directed by a Board of Governors (BOG)
and consists of nine members, representing
different economic sectors of investment.
PAGE 62
ISX started operations in 2004 with manual
trading till April 2009. Since April 18th, 2009 till
now ISX has been using Automation trading,
holding five sessions weekly from Sunday to
Thursday. ISX introduced a new index in June
2010 after the Automation went live. ISX has
organized a number of training courses for
Brokerage firms and training courses for the IT
staff and other ISX employees. These training
courses include Automation Trading in ISX and
run TWS for the brokers, (Equator & Horizon
SYSTEMS). The ISX publishes a monthly newsletter called
the Capital Market. Published in Arabic, the
Capital Market covers all financial events within
the ISX and the listed companies. ISX also
update its information through the website:
www.isx-iq.net. The ISX has successfully
joined FEAS (Federation of Euro-Asia Stock
Exchanges) on September 21st, 2005, and the
Federation of Arab Stock Exchange in June
2006.
5. Monitoring, surveillance of trading
limitations using Cap Formula T+0 which is
supposed to be changed to new Clearing
and Settlement Cap Formula T+2 instead of
current formula T+ 0 after the ISC approval
of the Custodian Banks regulations.
Inspection plans for all brokerage firms to
check files and documents integrity.
The market is where the investments,
exchange stocks, purchasing and selling
takes place. It is considered one of the
channels in which funds can flow between
persons and commissions through different
sectors that may help to mobilize and
develop financing and financial channels
in order to give readiness for different
investments.
FUTURE OUTLOOK
1. Organizing (232) trading sessions in
average five sessions weekly, and
supervised and accurate trading dealings
according to rules and electronic trading
instructions and disclosure about
transactions based the on the effected
ratios and Special orders.
2. Publishing daily tickers on ISX Website
during trading sessions which has been
started in December 2011.
3. Issuing (232) end-of-session daily reports
and yearly reports on ISX Website in
addition to publishing listed companies
guide and financial statements.
4. End-of-session prices published by
Bloomberg and Thomson Routers starting
from January 2012.
6. Electronic trading support for Al-Rabee
Brokerage branch in Erbil and Sulimaniya
Erbil branch started electronic trading
through ISX system since May, 2011.
7. However, Iraq Stock exchange will support
any brokerage firms planning to have
branches in other governorates.
8. Encouraging the non-listed companies to
be listed in ISX.
9. Inviting new firms and select the best five for
2012 to be licensed as brokerage firms.
10. Upgrade ISX electronic trading system to
new advanced version from OMX NASDAQ.
11. Representing Iraq Stock Exchange in
relevant conferences locally and globally.
12. Holding workshops to educate and
encourage investment in ISX.