“TOSHKENT” REPUBLICAN STOCK EXCHANGE
Progress in the last century proved that the
effectiveness of a market economy depends on
how well goods and financial services function
together. The spotlight therefore is on the
importance of establishing a well functioning
securities market. Undeniably, a securities
market plays a pivotal role, especially in a
newly developing transitional economy.
Bakhtiyor Radjabov
Chairman
During the past year the
Uzbek government took
necessary steps and
issued several
resolutions and decrees
in order to improve the
involvement of
companies in the
securities market by
providing tax privileges.
Throughout its development, the TRSE
completed a complex infrastructure, a central
office in Tashkent, and branches and brokerage
offices in all regions nationwide. In 1994, 12
brokerage offices were members of the
Exchange and as of 31 December 2002, this
number had increased to 86.
On 1 February 1998, a listing procedure was
introduced. On 1 September 1998, shares of
the first listed company began trading on the
TRSE. A specialized trading platform, for the
purpose of selling shares of privatized
enterprises to foreign investors for hard
currency, was launched on 1 January 1999.
We expect that the changes in the securities
market and in the national economy will greatly
affect our future operations and contribute to
the development of the Uzbek capital market.
During the past year the Uzbek government
took necessary steps along this path and
issued several resolutions and decrees in order
to improve the involvement of companies in the
securities market by providing tax privileges.
The lack of a freely convertible currency was
frequently cited as the single greatest barrier to
Uzbekistan's economic development.
Therefore, the introduction of the local
currency’s convertibility marked the main event
of 2003, as Uzbekistan fulfilled its currency
obligations to the International Monetary Fund
(IMF).
In 2003, the “Toshkent” Republican Stock
Exchange (TRSE, sometimes referred to as the
Uzbekistan Stock Exchange-UZSE) continued
its growing trend in trading volumes. Total
trading turnover increased 60%, exceeding US$
35.7 billion in our national currency equivalent.
Also, the Exchange made changes to the listing
regulations during 2003.
HISTORY AND DEVELOPMENT
A stock department was established in 1991,
which became a pioneer of Uzbekistan’s
securities market, and was eventually
transformed in 1994 into the “Toshkent”
Republican Stock Exchange (TRSE) - a closed
joint-stock company. The TRSE became an
open joint-stock company in 1998.
Establishment of the TRSE was closely
connected to its market performance and a
policy of establishing public joint-stock
companies on the basis of privatized
government enterprises. Currently, the TRSE
has 37 shareholders.
Mostly, management is grateful for the
enthusiastic hard work of our staff, who remain
the main driving force behind our success.
FUTURE OUTLOOK
In 2001 work on Exchange information and
electronic trading systems continued. The
website www.uzse.com started operations in
2001, and today the TRSE continues work on a
transition to modern web-technology trading. In
addition, there is a new system that allows
investors to receive "video-listing" through the
internet and consequently make an informed
decision prior to visiting the place. A video-
listing of more than 200 enterprises has been
prepared and advertised through the internet.
The Exchange has developed weekly ratings of
its activities by regions and industries on such
parameters as attraction of investors, stock
popularity, confidence among the population
and volume of investments. This has enabled
investors to have an actual picture of equity
market dynamics in Uzbekistan.
Founded nine years ago as Uzbekistan’s first
stock exchange, the TRSE is actively taking
part, always keeping in mind its major role, in
the development of the Uzbek capital market.
FEDERATION OF EURO-ASIAN STOCK EXCHANGES YEARBOOK 2003/2004
PAGE 88
Primary objectives for the coming year are:
• introduction of an on-call system in trading
with securities of non-listed companies on the
basis of a double non-continuous auction
system;
• creation of a new information system to
enable investors to find information on trades,
stocks, company financial data and dividends;
• modernization of the current trading system
on the secondary market to introduce a
control module over real time quoting; and
• strengthening cooperation with key capital
market participants and foreign exchanges.