FEDERATION OF EURO-ASIAN STOCK EXCHANGES > YEARBOOK 2002/2003 > PAGE 82
UKRAINIAN STOCK EXCHANGE
LETTER FROM THE CHAIRMAN
The Exchange carried out activities on the
development of new services, improvement of
legislation and a normative basis to supply trader
activities on the organized market.
This past year has not shown an increase in
activity on the securities market of the
Ukrainian Stock Exchange (USE). The annual
exchange stock turnover decreased 51%
times in comparison to 2001. The number of
transactions completed decreased 1.31
times.
This reduction in exchange figures can be
explained by a number of objective factors.
First of all, there was a change in regulations
for bill trading,which narrowed the organized
market. According to Ukrainian legislation
at the middle of the year 2002, the market
tool ‘bill’ disappeared from the market. In
2001 the volume of bill trading made 62% of
annual exchange turnover.
The second factor was the priority, in the
process of privatization in the Ukraine, which
influenced the development of the corporate
securities market. Consolidation of huge
shares resulted in a reduction of stocks of
investment in attractive companies. At the
same time the majority of shares realized
through the stock exchange experienced a
low-level liquidity because of the absence of
influential opportunities. The political
situation did not promote an improvement
in the investment climate of the Ukraine.
In spite of difficult situations in the
management of the USE, the Exchange
carried out activities on the development of
new services, improvement of legislation and
a normative basis to supply trader activities
on the organized market.
It is our belief that the chosen strategy will
gradually result in the creation of a
transparent, liquid investment attractive to
the national capital market, increasing the
market’s role as a way of solving the
questions of accelerating the economic
growth in the country.
During the 8th Annual General Assembly of
FEAS held in Kiev Ukraine, the USE was
elected Vice President of the Federation for
a 2 year term ending May 2005.
Valentin Oskolsky
Chairman of the Board
HISTORY AND DEVELOPMENT
The Ukrainian Stock Exchange (USE) is the
pioneer in the capital market of the Ukraine and
was created according to the law “On Securities
and Stock Exchanges” and registered by
decision of the Cabinet of Ministers of the
Ukraine on 29 October 1991. The USE is a
closed joint-stock company. Its authorized
capital is divided into 222 ordinary named
shares that belong to legal entities. The USE
was granted a registration certificate by the
Securities and Stock Market State Commission
in June 1997 according to the law “On State
Regulation of Securities Market in Ukraine.”
Since June 1998 the USE has been self-
regulating and has 140 registered brokerage
companies as members. There are 12 USE
branches. In 1993, the USE became a pioneer
of money privatization and implemented the
exchange mechanism of price creation. University. Additionally, the USE has developed
relationships with the Frankfurt, Korean,
Istanbul, Moscow and Kyrgyz Stock Exchanges
along with the Austrian Options and Futures
Exchange.
The USE is a member of the Coordinating
Council for solving questions about functioning
of securities market as charged by the President
of the Ukraine. The USE is member of the
Consulting & Experts Council in the Securities
and Stock Market State Commission. The official publication is “Hermes” which can
be found in the daily newspaper, “Business
Ukraine.”
The USE has created many educational
programs in association with the Slavonic
FUTURE OUTLOOK
The following are planned for the coming year:
implementation of the System of Electronic
Trading (SET of USE);
expansion on SET of the secondary securities
turnover and trading of internal state loan
bonds;
creation of conditions and bases for the
formation and development of market
derivatives;
growing participation of the USE in privatization
processes in the implementation of the State
Privatization Program and the law of Ukraine
“On State Budget of Ukraine for 2003”; further
improvement of technologies for trading state-
owned shares of privatized companies;
promotion of the attraction of direct national
and foreign investments to develop strategically
important industries during the process of
privatization;
development of exchange information areas,
expansion of publishing, scientific, methodical
and educational activities in order to prepare
specialists for the national capital market;
strengthening international cooperation with
foreign stock exchanges and international
financial organizations.