FEDERATION OF EURO-ASIAN STOCK EXCHANGES
SEMI ANNUAL REPORT OCTOBER 2006
FEDERATION OF EURO-ASIAN STOCK EXCHANGES
WORKING COMMITTEE
During the Working Committee Meeting that
was held in Chisinau, Moldova on May
16-17th 2006, reports were given from all of
the task forces including Media, Regional
Indices, Market Principles and Corporate
Governance, Affiliate Members, FEAS Data
Center and XBRL. Updates were also
provided on the Semi Annual Report, Revenue
and Expense Analysis, Bilateral Initiatives, the
Draft Financial Report and the 2006 Calendar
of Events. Recommendations to the
Executive Committee included a new member
to the working committee and the new task
forces mentioned above.
The next working committee meeting will be
held in Kiev, Ukraine and hosted by the
Ukrainian SE.
Task Forces
As a result of combining the Working
Committees, 12 Task Forces were formed to
carry out the mandates of the Executive
Committee with the approval of the General
Assembly. Due to the fact that some Task
Forces completed the tasks assigned to them
and some new task forces were formed, only
the active Task Forces are listed below.
Task Force 0404 – Media (Led by Muscat
Securities Market)
The object of this task force is to explore and
develop means to enhance media interest in
FEAS member countries by publishing reports
on members. In order to do this a visiting
group of trainers for members of the local
media is being developed in addition to a 1-2
week program for journalism students from
FEAS member countries. Two programs were
already approved as proposed by the Task
Force. The first program was held in Istanbul,
Turkey in September 1-2, 2005. The purpose
of this meeting was to draft a uniform
curriculum for training the media. The second
program was held in Muscat, Oman on
December 15, 2005, in order to provide the
previously developed training to the instructor
group and participating members. It has
been decided to have the program in three
languages: English, Arabic and Russian.
English to be held in Turkey, Arabic in Jordan
or Egypt and Russian in Kyrgyzstan.
Task Force 0406 – Regional Indices (Led
by Tehran Stock Exchange)
The Task Force is in the process of
conducting a survey among FEAS members
for the creation of the index and also
completing negotiations with Dow Jones
Indices.
Task Force 0412 – Corporate Governance
(Led by Karachi Stock Exchange)
All members in the FEAS region place a
strong emphasis on Corporate Governance.
For this reason a task force was created to
provide a vehicle for informing all member
stock exchanges of international regulations
and practices regarding corporate
governance. The Bucharest Stock Exchange
hosted a conference on Corporate
Governance in June of 2005 and FEAS jointly
hosted roundtable meetings with the OECD
on February 15-16, 2006.
Task Force 0501 – Affiliate Members (Led
by ISE Settlement and Custody Bank,
Takasbank)
Affiliate members have designed and are in
the process of implementing both new web
pages on the FEAS web site and new pages
in the FEAS Semi Annual Report.
Task Force 0502 – FDC Implementation
(Led by Istanbul Stock Exchange)
The database will be upgraded to allow more
space to add members, in addition members
will be added who are participating in the
FEAS Index.
Task Force 0503 – XBRL (Led by Abu
Dhabi Securities Market)
XBRL: Extensible Business Reporting
Language is a language for the electronic
communication of business and financial
data, it provides benefits in the preparation,
analysis and communication of business
information. It offers cost savings, greater
efficiency and improved accuracy and
reliability to all those involved in supplying or
using financial data. The efforts of this task
force will go toward promoting and educating
members about XBRL.
2006 Mandates:
• Publication and Distribution of the Semi
Annual Report in March/April and
September/October
• Hold a conference with Issuers, Brokers &
Mutual Fund Managers in conjunction with the
launching of the FEAS Index
• Hold the first meeting for Affiliate Members
• Jointly hold a meeting with the OECD on
Corporate Governance
• Jointly hold a meeting with the WFE
• Hold a Media Conference hosted by the
Muscat Securities Market
• Completion of the ongoing revenue analysis
from 2001 through 2005.
THE ORGANIZATION
FEAS/OECD JOINT ROUNDTABLE FOR
CORPORATE GOVERNANCE – FEBRUARY
15-17TH, 2006 – ISTANBUL, TURKEY
The main objectives of the sixth Eurasia
Roundtable was to support corporate
governance improvements in the region by: (i)
assessing recent corporate governance
developments and future reforms in Eurasian
countries; (ii) discussing ways to increase
securities regulators’ and the judiciary’s
effectiveness in the enforcement of corporate
governance rules, and (iii) considering
effective enforcement of the corporate
governance framework through alternative
dispute resolution mechanisms.
The two Roundtables (Eurasia and South East
Europe) met jointly to consider for the first
time the recently adopted OECD Guidelines
on Corporate Governance of State-Owned
Enterprises. The Guidelines were be
presented and experts from OECD member
countries and representatives from the two
Roundtables exchanged their experiences
with a view toward supporting efforts to
improve SOE governance in the region,
particularly in relation to the role of the state
as a shareholder and the board of state-
owned enterprises. This meeting also
addressed the role of banks in corporate
governance, an issue of particular relevance
to both Roundtables.
Finally, with the release of the White Paper in
2003, the South East Europe Roundtable has
now entered the second phase of its program,
focusing on implementation of the White
Paper recommendations and priorities.
This sixth meeting sought to support further
corporate governance improvements in the
region by addressing i) recent developments
and future reforms aimed at implementation
and enforcement of the recommendations of
the White Paper in the region overall and in
greater detail in the specific case of Croatia;
ii) the responsibilities of securities regulators
in the enforcement of corporate governance
rules; and iii) the private sector’s role in
corporate governance enforcement.
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