ARMENIAN STOCK EXCHANGE
Yermonya Vardevanyan
Chairwoman
During the past year,
we have significantly
improved procedures
covering disclosure
of information to the
general public.
The third year of operation for the Armenian
Stock Exchange (ARMEX), 2003, saw further
development in all areas of activities, including
the organizational structure, legislation and
monitoring practices. The ARMEX trading
system was upgraded to ensure improved
trading in equities and allow trading in bonds
and derivatives. Although the 2003 trading
volume of nearly US$ 0.74 million was not as
high as in 2002, market capitalization increased
more than 1.6 times to approximately US$ 27
million as of 31 December 2003. Remarkable
efforts were also undertaken to expand and
strengthen relationships with issuers of listed
securities. Throughout the year, advisory
services pertaining to reporting practices,
implementation of international accounting and
corporate governance principles were provided
to issuers. Overall, by year-end 2003, the
number of listed companies rose to 214
compared to 161 at the end of 2002.
ARMEX is a voluntary association of broker
(dealer) companies and currently has 21
members. The self-regulation principle provides
each member with an equal right to participate
in the management of the Exchange. The
supreme management body of ARMEX is the
General Meeting of Members, which elects
twelve members of the Observers Board,
including the Chairman. The Board appoints the
executive director of the Exchange who carries
out the general operations. ARMEX operates
pursuant to the provisions of the Civil Code of
the Republic of Armenia, the law of the Republic
on Regulations of the Securities Market and its
Charter, and is subject to regulation by the
state. In Armenia, the Securities Commission of
the Republic of Armenia is the state authority
that regulates the activities of the Exchange.
Two major initiatives to be implemented in 2004
are the introduction of foreign exchange trading
and trading in government bonds on the
ARMEX floor.
One of our most important goals has been to
ensure transparency of the market. During the
past year, we have significantly improved
procedures covering disclosure of information
to the general public. Actions included
HISTORY AND DEVELOPMENT
The Armenian Stock Exchange (ARMEX) is the
successor of the Association of Securities
Market Participants, established in Armenia in
1997, and is currently the only stock exchange
operating in Armenia. ARMEX was registered by
the Securities Commission of the Republic of
Armenia on 13 February 2001, as a self-
regulatory organization. On 6 July 2001, the first
trading session was held. Currently, participants
can access the trading system either from
workstations located on the ARMEX floor or
remotely from their offices.
providing more information on a regular basis
via the media and the official website of the
Exchange as well as making market data
significantly more accessible to all interested
parties.
FUTURE OUTLOOK
Since November 2002, ARMEX has been a
member of the Federation of Euro-Asian Stock
Exchanges and contributes to the development
of regional cooperation. In 2004, ARMEX has plans to:
The most important role that ARMEX plays in
today’s economy is to provide Armenian
companies with an opportunity to raise new
capital in the marketplace, thereby expanding
their businesses and gaining access to new
business opportunities. • continue activities aimed at facilitating trade
in government securities on the Exchange;
• develop a platform for foreign exchange and
derivatives trading;
• improve and expand a database on listed
companies while providing investors and the
general public with increasingly more relevant
corporate data;
• establish comprehensive corporate
governance requirements for companies on
various listing levels;
• carry on with efforts to introduce investor
protection mechanisms, in particular, develop
a framework to cover the establishment and
utilization of a guarantee fund;
• finalize the ARMEX index methodology and
initiate index reporting on a regular basis; and
• continue improving regulations and
practices toward compliance with WFE and
IOSCO recommendations.
FEDERATION OF EURO-ASIAN STOCK EXCHANGES YEARBOOK 2003/2004
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