FEDERATION OF EURO-ASIAN STOCK EXCHANGES
SEMI ANNUAL REPORT OCTOBER 2008
GEORGIAN STOCK EXCHANGE
The year 2007 was a year of significant
changes for the GSE that were mainly
related to the essential amendments to
securities market legislation in Georgia.
George Loladze
Chairman of the Supervisory Board
The year 2007 was a year of significant
changes for the Georgian Stock Exchange
(GSE). These changes were mainly related to
essential amendments to securities market
legislation in Georgia enacted at the end of
March 2007. Liberalized legislation effectively
shifted much of security trading from the stock
exchange and brokerage companies to the
unregulated market. As for the stock exchange
transactions–the main focus here was on
several relatively attractive stocks, though it’s
worth mentioning that that there are very few
really liquid securities in Georgia.
FUTURE OUTLOOK
1. Significant changes will take place at the
Georgian capital market in 2008. In particular,
the Georgian legislation, GSE Charter and
Rules will be amended to ensure:
• Demutualization of the GSE;
• Direct participation of various financial
institutions in GSE trading;
• Remote GSE membership (for foreign
institutions);
2. Based on the significant interest of a leading
European stock exchange operator, as well as
of the various financial investors, significant
changes in GSE ownership structure is
anticipated, entailing, among other, attraction of
required investments for further development of
the GSE.
All the above-mentioned has significantly
reduced GSE turnover. However, we look with
optimism into the future, since investors’
interest towards Georgian securities market, in
general, and GSE, in particular, is constantly
increasing. We hope that through the policy of
aggressive reduction of tariffs and fees,
improving quality of the stock exchange and
central depository services (implementation of
remote trading, remote access to central
depository, etc) we will attract new circles of
investors and soon see the next boom in GSE
volumes. 2008 is the year of Presidential and
Parliamentary elections in Georgia and we
hope that the post-election stability period will
bring further investor confidence to the market.
3. Also, in 2008 the GSE plans to:
• Make important changes in its trading system
and trading rules so as to increase the
efficiency of trading and increase the liquidity of
the market:
• Intensify the trading process. In particular, the
trading sessions will be conducted on daily
basis and/or time period of the trading sessions
will be extended;
• Further improve remote trading system for
brokerage companies;
• Establish electronic links between securities
market participants (stock exchange, central
depository, brokerage companies, banks,
securities registrars)
• Increase the efficiency of the government
securities trading on the stock exchange; • Introduce partially guaranteed trading of
securities;
• Introduce price quotation both in local and
foreign currencies.
• Launch a new web-site for the GSE, which
along with traditional statistics will provide
corporate reports database for the companies
who are admitted to the trading system. In
addition, the creation and publication of a
company database will allow companies to
publish their annual, semi-annual and current
reports which are required by law and thus
improve disclosure standards and corporate
transparency.
CONTACT INFORMATION
Contact Name Mrs. Ekaterine Katamadze
E-mail [email protected]
Website www.gse.ge
PAGE 26