ANNUAL REPORT JUNE 2010
FEDERATION OF EURO-ASIAN STOCK EXCHANGES
BELGRADE STOCK EXCHANGE
During 2009, the BSE made intensive
efforts to motivate the Exchange members
to actively engage in the market-making
operations.
Gordana Dostanic
Managing Director
The movements at the Belgrade Stock Exchange
in 2009 were considerably affected by movements
on the global financial market. During the year, the
investment activities diminished in terms of the
turnover value due to an increased risk aversion.
The total turnover at BSE during 2009 amounted
to US$ 636.8m, a fall of 52% compared to the
previous year. In the same period, the average
daily turnover also recorded a fall of around 52%.
The effects of a significant decline in investment
activities at BSE during the last year could not be
alleviated due to the lack of a broader range of
financial instruments, above all debt instruments,
(municipal and corporate bonds) which, as a rule,
in the conditions of increased risks, enable an
efficient restructuring of investment portfolios for
the purpose of minimizing the overall risk
investment.
During the first quarter, when the turbulences in
the global economy reached a peak, the index
HISTORY AND DEVELOPMENT
The Belgrade SE was originally founded in 1894,
on November 21, but the first transactions were
made in January 1895. The last trading session
was held on April 4, 1941. The Stock Exchange
was closed in 1953, and again refounded in 1989,
as a “Yugoslav Capital Market”. In 1992, Belgrade
SE officially got its name back. The key events in
the history are:
• In September 2002 Republic of Serbia Bonds
trading began;
• In March 2004, remote trading was launched;
• In September 2004, Belgrade SE achieved full
membership in FEAS;
• In October 2004 continuous trading of stocks
has begun;
• In November 2004 the Third International
Conference was held. The 110 anniversary of
Belgrade SE celebrated;
• In December 2004, BELEXfm index has been
lunched;
• In February 2005, Belgrade SE became an
associate member of FESE;
• In March 2005, BELEX.info service was lunched;
• In May 2005 the data distribution via Data Feed
has begun;
• In October 2005 the BELEX15 index has been
introduced;
• In November 2005 the Fourth International
Conference “Preserving Integrity and Efficiency of
the Capital Market” was held;
• In January 2006 new website was launched;
• In April 2006 various training courses started;
• In April 2006 MoU signed with the IFC;
• In November 2006 the Fifth International
Conference was held;
• In March 2007, SRX index (Serbian Traded
Index) launched by the Vienna SE;
PAGE 68
describing the movement of the most liquid BSE
shares BELEX15 hit its historic low of 347.46
index points. In the same period, the investors
started to relax with the first signals that the
measures taken by the governments of G20
countries could lead the world economy out of the
crisis. The same relaxation, slightly delayed, was
also felt at the BSE. Thus, during 2009, BELEX15
recorded an annual rise of 17.44%. On the last
day in 2009, the value of this index amounted to
663.77 index points, still far below its base value
of 1,000.00 index points.
During 2009, the BSE made intensive efforts to
motivate the Exchange members to actively
engage, in addition to their usual activities in the
securities trading, in the market-making
operations, for the purpose of enhancing market
liquidity, reducing the risk of an uncontrolled price
volatility and successful establishment of prices
for less liquid securities. The BSE entered 2009
with only one market maker, but during the year,
• In April 2007, the Belgrade SE launched its new
general equity index BELEXline, successor of the
BELEXfm;
• In April 2007, first company listed on the
premium Listing A – Tigar Corporation from Pirot;
• In June 2007, BELEX 15 Open End - Index
Certificate issued and listed at the Frankfurt SE
and Stuttgart SE;
• In November 2007, Serbian stocks included in
first Balkan Blue-Chip index - DJ STOXX Balkan
50;
• In November 2007, VI International Conference
was held;
• In December 2007, ’Discobolos’ was rewarded
to the Belgrade SE for applying new technologies;
• In December 2007 the Memorandum of
Partnership was signed with exchanges from the
region;
• In January 2008, ABN AMRO bought a licence
for BELEX15
• In April 2008, the new trading system BELEXFIX
was launched;
• in September 2008, first closed-end fund shares
admitted to trading;
• In November 2008, VII Annual Conference was
held;
• In December 2008, first market maker in TIGR
shares;
• In May 2009, Third International Roadshow was
held in Belgrade;
• In June 2009, three new market makers were
introduced to the market;
• In August 2009, new website was launched;
• In September 2009, Luxembourg Foreign
Minister Jean Asselborn visited the Belgrade SE;
• In November 2009, SEE Regional Capital
Markets Conference was held in Vienna;
• In November 2009, VIII Annual Conference was
held;
recognizing the importance of these activities and
seeing the first positive effects on the market,
three more members started performing market-
making operations.
In order to enable the electronic order routing
from the “backoffice“ applications of the
Exchange members into the BSE trading system,
a special module FIXAPI (FIX Application
Programming Interface) was developed enabling
the automatic transfer of orders from an Exchange
member to the BSE trading system BELEXFIX.
In the second half of the year, the BSE launched
into production its new internet presentation,
which has the following advantages over the
previous version: it provides easier access to
more information, use of new development tools
enabling a more efficient development,
maintenance and control of performances,
modern design, faster web site search, etc.
FUTURE OUTLOOK
In 2010 the BSE will work on the execution of the
following projects:
• Upgrading of all operations, rules and
procedures to provide state-of-art service;
• Introduction of the electronic order routing in the
BSE trading system, BELEXFIX;
• Launching of modern BSE Disaster recovery site;
• Organization of international roadshows;
• Further development of the existing indexes and
indicators;
• Continuous motivation of the best Serbian
companies to apply for Official Listing;
• Further development of market segmentation by
creating new segments and improving the existing
ones;
• Development of sector classification in line with
the leading global standards;
• Market liquidity boosting through automation of
the market-making function;
• Exploring the possibilities of introducing new
instruments into the market;
• Promotion of news on listed companies through
direct cooperation with media and news agencies;
• A reduction in the transaction costs and taxes in
cooperation with other capital market institutions
and state bodies;
• Broadening the network of international data
vendors;
• Work on promotion of importance of corporate
governance among issuers;
• Educational activities with the existing and new
training programs;
• Improvement of media coverage of stock
exchange activities;
• Editing and publishing of new editions and
publications;
• Work on developing human resources;
• Organization of the annual 9th International
Conference in November.