FEAS Yearbook FEAS Yearbook 2002 | Page 87

FEDERATION OF EURO-ASIAN STOCK EXCHANGES > YEARBOOK 2002/2003 > PAGE 85
ZAGREB STOCK EXCHANGE
LETTER FROM THE GENERAL MANAGER
The ZSE is developing new products,
as well as upgrading the trading
system and online information
dissemination software.
The past year was an extremely successful
year on the Croatian Capital Market. Trading
on the Zagreb Stock Exchange (ZSE) in
equities was just 21% higher than a year
before, but outstanding volumes in bonds
mark 2002 as the most fruitful season since
1992.
Croatia is in the process of pension reform
in which the pay-as-you-go system is being
transformed into a fully-funded scheme.
Since the beginning of the pension reform
in 2001, three pension funds have been
established within this framework: the state
pension fund and the obligatory and
voluntary funds. Those obligatory pension
funds as institutional investors became the
most active players (buyers) on the bond
market and boosted trading activity and
turnover significantly. Due to these changes,
as well as a huge demand, the total Zagreb
Stock Exchange turnover rose 248.9%
Despite the turmoil on world financial
markets and its negative impact on
developing markets the market capitalization
in 2002 rose 24% over year end 2001. In addition, new government bond listings,
additional development of the bond market
and the beginning of retail sector involvement
in debt markets is likely to occur.
On 1 October 2002 the Zagreb Stock
Exchange launched its new official bond
index CROBIS©. The base date of the index
is September 30, 2002 and the base value
was set at 100. Together with the growth of the national
GDP, we are expecting 2003 to be even more
significant than 2002.
The ZSE is developing new products, as well
as upgrading the trading system and online
information dissemination software. A new
Securities Act has set up the criteria, as well
as the obligation for large public companies
to be listed on the stock exchange by July
2003. It is expected that more than 200
Croatian companies will meet the criteria and
that a majority of them will apply for listing
in a separate Quotation for Public Companies. General Manager
The ZSE currently has 39 members. Prerequisites
for ZSE membership include: compliance with
the Securities Law, CROSEC requirements and
ZSE rules. A seat on the ZSE currently costs
approximately US$ 13,000. Members are required to comply with the rules
and regulations of the ZSE and must register at
least one licensed broker.
Marinko Papuga
HISTORY AND DEVELOPMENT
The Zagreb Stock Exchange (ZSE) was
incorporated in 1991 as a joint-stock company
by 25 commercial banks and insurance
companies. Today, the ZSE has 43 shareholders
who in turn elect a nine-member supervisory
board for a two-year term. The supervisory board
appoints the Manager of the Exchange who is
in charge of the strategic planning and day-to-
day operations.