FEAS Yearbook FEAS Yearbook 2013 | Page 94

FEDERATION OF EURO-ASIAN STOCK EXCHANGES ANNUAL REPORT JUNE 2013 MACEDONIAN CENTRAL SECURITIES DEPOSITORY Macedonian Central Securities Depository will focus on introducing new financial instruments in Macedonian Capital Market. Elena Jakimovska Patrovska Acting CEO General Information The purpose of The Macedonian Central Securities Depository (MCSD) is to establish central securities register comprising all active shares, bonds and other financial instruments in Republic of Macedonia. This will lead to better access and distribution of information about the issuers and securities to: • Investors • Foreign investors • Holders of restrictive rights • Issuers • Brokers • Macedonian Stock Exchange • Pledge Register • Other authorized institutions in accordance with the law. Brief History A pre-study concerning the establishment of a central securities register and a clearing and settlement system in the Republic of Macedonia was started in 1999 as a component of the Government’s program for the improvement and development of the Macedonian capital market. The improvement of the infrastructure for increasing national as well as international investors’ confidence in the Macedonian capital market and financial sector in general, were among the preconditions for the World Bank and IMF’s programs of financial support to the Republic of Macedonia. In accordance with the Securities Law, article 172, the Government of Republic of Macedonia, with the Decision no7 - 167/1 from 20.02.2001, authorized the Payment Operational Service to undertake all necessary measures and activities for implementation of the Central Securities Depository. Regulatory Environment Macedonian CSD is Self Regulatory Organisation, under authority of Security Exchange Commission. Participants At present time, there are 15 participants, banks and brokerage houses. Services Provided The Macedonian CSD is providing the following services to the participants in the operations, issuers and holders securities: • recording of the securities in the Depository; • notification of the issuers and holders of securities about the condition on their accounts; • clearing and settlement of the liabilities arising from the transactions with securities; • rendering services connected with the corporate activities; • other services that arise from the ownership and transactions with securities, arising from the scope of its operations. Form of Securities All securities are registered and dematerialised. Future outlook 2013 Conditions and environment in which operation of the Central Securities Depository AD Skopje will take place in 2013, arise from environment in which Macedonian economy will work. Beginning of 2013 is marked with changes of legal framework which has the most direct impact on the operation of the CSD in 2013, especially beginning of the application of amendments to three important laws: • Company Law • Law on Securities • Law on Personal Income Tax. Also, at the beginning of 2013, amendments of Rules of operation of CSD and Rules for Guaranty Fund were approved by Securities Exchange Commission, which also will have impact on CSD operations. Potential strategic segments and objectives for development of Macedonian capital market as well as Macedonian Central Securities Depository are: • Proper positioning of the CSD in processes of regional and global connectivity of the capital markets, especially establishing forms of collaboration and connections with other depository institutions in region • Improvement of the services offered by the Depositary to all participants in the securities market, according to their needs and development of new services; • Infrastructure development of the Depository for the purpose of achieving its basic goals; • Technical and normative development of the functionalities of the Depositary, the upgrading of existing technical, technological and communication solutions; • Effective and sustainable management of operating expenses of the Depositary, taking into account the minimization of operational risk; In order to reach strategic objectives, Depository plans to implement following activities in 2013: • Regular and timely fulfillment of obligations regarding registration, clearing and settlement of securities, as well as executing non-trade transfers of securities • Introduction of new control mechanisms to reduce potential risks • Promotion of services in respect of securities lending, in accordance with current legislation and by-laws and requirements and needs of the members of the Depositary; • Implementation of new provisions in Operation Rules of the CSD related to omnibus accounts; • Analysis and design of new technological solutions for data exchange and settlement of securities between the Depositary and similar institutions abroad; • analysis of needs and opportunities for use of 20022 SWIFT standards in operation; • Introducing new services for the Issuers of the securities using modern technological solutions. • Development and realisation of plan for education for investors and issuers in cooperation with Securities Exchange Commission and Macedonian Stock Exchange During 2013, Depository will be focused in fulfillment of its obligations to holders of securities, issuers, participants of Depository, Macedonian Stock Exchange, National Bank and government institutions. * Please refer to page 63 for the Macedonia country report. CONTACT INFORMATION Contact Name Ms. Sofija Vidovic PAGE 92 E-mail [email protected] Website www.cdhv.org.mk