FEAS Yearbook FEAS Yearbook 2012 | Page 86

FEDERATION OF EURO-ASIAN STOCK EXCHANGES ANNUAL REPORT JUNE 2012 MOLDOVA STOCK EXCHANGE In 2011, fruitful work has been done in modification of the existing legislation of the capital market. Dr. Corneliu Dodu President In 2011 the Moldova Stock Exchange indicators were slightly lower than in 2010. The trading volume decreased (in 2011 – US$ 20,6 millions) compared to US$ 22 millions in 2010. The number of shares traded was about 26 millions compared to 28 millions in 2010. HISTORY AND DEVELOPMENT In 1993 the Law on securities circulation and stock exchanges was enacted and from this point in time the institutional infrastructure of stock market in Moldova began to develop. In December 1994 the non-profit institution, Moldova Stock Exchange was established as joint-stock close company. 34 promoters – the securities market professional participants took part in its establishment. The first transactions were made on June 26, 1995, and this date is accepted as the birthday of the Moldova Stock Exchange. In June 1998 the Moldova Stock Exchange established the National Securities Depositary and a new trading system were integrated with the depositary system which allows transactions to be carried out. According to the changes made in the law «On Securities market» which came into effect on January 1, 2008, Moldova Stock Exchange has the right to own up to 75% shares of National Securities Depositary. PAGE 84 At the end of the 2011 on the Stock Exchange were registered 1017 issuers: in Listing – 12 and in Non-listing – 1005. There are 21 accredited members. In 2011 the most resulting period for the Moldova Stock Exchange by volume was September ($3,2 millions) and by number of transactions – March (236 transactions). There were 252 trading days. At the moment Moldova Stock Exchange has 37 shareholders, of which 22 are the exchange’s members. The members are legal entities that own at least one share of the exchange (one vote) and have the license for broker and / or dealer activity. In April 2000 Moldova Stock Exchange received the status of a self-regulating non-commercial organization. In July 2000 new Moldova Stock Exchange’s Regulations were introduced which qualitatively changed the mechanism of transactions. In July 2007 the Mega regulator – National Commission of Financial Market was created. According to the legislation the Mega regulator regulates and determines state policy of the nonbank financial market. According to the new requirement of the law «On Securities market» from January 1, 2009, Moldova Stock Exchange is a public company, a for profit organization. Fruitful work has been done in modification of the existing legislation of the capital market. The modifications and additions have done regarding the Law on the securities market and the Law on Join-Stock Company. Were approved new rules on preventing and combating money laundering and terrorism financing on the financial non-bank market. At the present Moldova Stock Exchange is a developing stock market, which continues to cooperate with other stock exchanges and financial organizations. MSE is a member of FEAS from 1995 and in 2008 became the member of International Association of the CIS Exchanges, which has the aim to coordinate the effort on development of organized financial markets in accordance with international standards. FUTURE OUTLOOK In the 2012 Moldova Stock Exchange will continue to attain the objectives to which aspires. The main directions of development are the improving of the marketing effectiveness and IT infrastructure, cooperation with regional and international organizations and diversification of financial instruments traded. The MSE will also continue its efforts to attract more listed companies.