FEAS Yearbook FEAS Yearbook 2010 | Page 162

ANNUAL REPORT JUNE 2010 FEDERATION OF EURO-ASIAN STOCK EXCHANGES UKRAINIAN STOCK EXCHANGE Valentin Oskolsky Chairman of the Board Trading value of the Ukrainian Stock Exchange (USE) in 2007 amounted to US$ 16.8 million. If we analyze trading structure by market instrument, we can see that trading value for derivatives increased to 15.5% from 0.05% in 2006, but trading value for corporate bonds decreased to 17.3% in 2007 from 53% in 2006. The most traded instrument was state-owned shares. The USE activity throughout the year was focused on improvement of trading HISTORY AND DEVELOPMENT The USE is a pioneer in the capital market of Ukraine, created according to “Law on Securities and the Stock Exchange”, and registered by decision of the Cabinet of Ministers on 29 October 1991. The USE is a closed joint-stock company with an authorized capital divided into 288 ordinary nominal shares belonging to legal entities. In 1997, according to the Law “On State Regulation of Securities Market in Ukraine”, the Securities and Stock Market State Commission re-registered the USE. Since June 1998 the USE has been a self- regulated organization. There are 100 registered brokerage companies as USE members. The USE has 3 branches in the largest Ukrainian regions. The USE is a member of the Coordinating Council for the functioning of securities market charged by the President of Ukraine. It’s also a member of the Consulting & Experts Council in the SSMSC, the Ukrainian Chamber of Commerce and Industry, the Academy of Economic Science and the Academy of Engineering Science of Ukraine, the Board of Ukrainian Council on Economic PAGE 158 The USE activity throughout the year was focused on improvement of trading technology, widening the number of market instruments and supplementing the market information. technology, widening the number of market instruments and supplementing the market information. The USE also provides educational activity. The USE is a co-founder of the Kiev Slavonic University continued its work with students, through the Securities Chair. Starting from 2002 there has been a Student Stock Exchange at the USE. Every student has an opportunity to become an exchange specialist and then a broker. Education and the Ukrainian Community “Intelligence of the Nation”. Chairman of the Board of USE Mr. Valentin Oskolsky is also President of Union of Economists of Ukraine and President of Article Numbering Association “GS1 Ukraine”. The USE has created many educational programs in association with the Kiev Slavonic University. The official publication, “Hermes”, can be found in the daily newspaper “Ukraine- Business”. FUTURE OUTLOOK Plans for the USE in 2008 include: • expansion through the System of Electronic Trading (SELT USE) secondary securities turnover and trading the internal state loan bonds; • creation of the conditions and basis for formation and development of a derivatives market; • taking actions to attract new members to operate in SELT USE; Through gaining theoretical and practical knowledge and accumulating experience, students realize the importance of capital markets and can better make their choice of future professions. It is our belief that the USE has chosen a strategy that will gradually result in transparent, liquid, investment and an attractive capital market. • participation in the privatization processes planned to be implemented by the State Privatization Program and the Law of Ukraine “On State Budget of Ukraine for 2008”; • improvement of technologies for trading State-owned shares of privatized companies; • promotion for the attraction of direct national and foreign investments to develop strategically important industry companies during the process of its privatization; • development of the electronic documentation turnover and electronic digital signature according to new Ukrainian legislation; • development of Exchange information areas, expansion of publishing, scientific, methodical and educational activities in order to prepare specialists for national capital market; and • strengthening the international cooperation with foreign stock exchanges and international financial organizations.