FEAS Yearbook FEAS Yearbook 2014 | Page 102

FEDERATION OF EURO-ASIAN STOCK EXCHANGES ANNUAL REPORT JUNE 2013 MACEDONIAN CENTRAL SECURITIES DEPOSITORY In 2014, Macedonian Central Securities Depository will focus on establishing electronic services for issuers, investors and institutions via web services. Elena Jakimovska Patrovska Acting CEO 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 General Information The purpose of The Macedonian Central Securities Depository 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 • Issuers • Brokers • Macedonian Stock Exchange • Holders of restrictive rights • Pledge Register • Other authorized institutions in accordance with the law. Brief History The Central Securities Depository Skopje AD was established as the sole central depository facility for Macedonia under the Securities Law enacted by Parliament in July 2000. The CSD was established as a non-profit, private shareholding company and under the Securities Law was the only institution in the country that was legally empowered to act as a Central Securities Depository. Beginning of operation was at November 2001 and during the first 5 months of operation the CSD received data for the shareholding books of 650 joint-stock companies. During this process, 200,000 securities accounts were opened for the owners of securities. In successfully completing this operation, registration of securities instruments was concentrated at the CSD as one central database. 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; During last twelve years, 35 banks and brokerage houses were participants in CSD, with total turnover of 3.838.000.000 USD from 405.444 trade transactions. Central Securities Depository Skopje settles trade transactions concluded on Macedonian Stock Exchange from the beginning of operation in 2001, and started to settle OTC transactions from 2005. Regulatory Environment Macedonian CSD is a Self Regulatory Organisation under the authority of the Securities and Exchange Commission of the Republic of Macedonia. The Law on securities, the CSD Rules of Operation, CSD Instructions and other relevant legislation are the components of the CSD legal framework. Participants At present time, there are 12 participants, banks and brokerage houses. Services Provided The Macedonian CSD is providing the following services to the participants in the operations, issuers and holders of securities: • maintenance of the securities registry in Macedonia- registration of issuance of securities and securities transfers, as electronic records; • providing the International Securities Identification Number for all issues of • securities; • registration of owners of securities; • settlement of trades on the delivery versus payment (DVP) principle; • execution of non-trade transfers; • facilitation of securities borrowing; • 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; • monitoring of the financial position of its members for the purpose of managing • settlement risk; and • provision of additional services for securities issuers. Form of Securities All the securities in Republic of Macedonia are registered and dematerialised. Future outlook 2014 The general goals for Macedonian CSD for 2014 period are the following: • foster the development of fair, efficient, dynamic and competitive securities markets that will provide investment opportunities and access to capital • maintain reliable, efficient, effective and responsive CSD organization in providing services to our clients • regular and timely fulfillment of obligations regarding registration, clearing and settlement of securities, as well as executing non-trade transfers of securities. In 2014, Macedonian Central Securities Depository will focus on establishing electronic services for issuers, investors and institutions via web services. As support to its plans for development, Macedonian CSD is in process of reconstruction of IT center and obtaining new IT equipment. In area of compliance with international standards, Macedonian CSD as National Numbering Agency will implement new ISO standard for Financial Instrument Short Name (FISN 18774) with continuation of implementation of other standards (ISIN -ISO 6166 and CFI code- ISO 10962). * Please refer to page XXX for the Macedonia country report. CONTACT INFORMATION Contact Name Ms. Sofija Vidovic PAGE 102 E-mail [email protected] Website www.cdhv.org.mk