ANNUAL REPORT JUNE 2010
FEDERATION OF EURO-ASIAN STOCK EXCHANGES
IRAQ STOCK EXCHANGE
The total trading volume for the year of
2009 reached US$ 368 million, a increase of
36% when compared with the year 2008.
Taha Ahmed Abdul Salam
CEO
Iraq Stock Exchange (ISX) had established and
start operations in June 2004. The ISX operates
under the oversight of the Iraq Securities
Commission (ISC).
The exchange is a self-regulated organization,
owned by the members. The ISX is financially and
administratively independent from the Iraqi
government including the Ministry of Finance. It is
organized as a non-profit entity that is owned by
its members, namely licensed brokers. It is
regulated by the Iraq Securities Commission and
follows the operational procedures outlined in its
By-laws that are fully compliant with the Iraqi
Securities Law.
Iraq Stock Exchange (ISX) introduced a special
index in August 2009 after Automation go life
which closed in December 2009 at 100 points.
The ISX held approximately 152 sessions in 2009
compared with 139 sessions in 2008. The total
trading volume for the year of 2009 reached US$
368 million, a increase of 36% when compared
with the year 2008. The total traded shares in
HISTORY AND DEVELOPMENT
1. For the period of 1992-2003 the Baghdad
Stock Exchange was operating and was well
known.
The previous Baghdad Stock Exchange was
established by the law No. 24 in 1991. The
market was related to the government and it
listed (113) different companies, some private
and others from the mixed sector. During that
period, especially in 2003, the market had
gained an annual trading volume exceeding,
US$17.5 million. However, this market was
closed by a decision of its Governing Council
in March 19, 2003.
2. Establishment of Iraq Stock Exchange
On 18 of April 2004, the temporary law No. 74
was issued. It gave the authority to establish
two important capital development bodies
concerning financial sectors, they are:
A. Iraq Stock Exchange (ISX).
B. Iraq Security Commission (ISC).
3. Meaning of Iraq Stock Exchange
The ISX is an entity capital market not related
or powered by the government. It is directed by
a Board of Governors (BOG) and consists of
nine members, representing different economic
sectors of investment.
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2009 were 211 billion shares, a increase of 40%
compared with the year 2008 The total numbers
of transactions realized in 2009was 49 thousands.
The number of shares traded for non Iraqis was
15 billion shares and the trading volume was
US$ 21.5 million. The ISX has successfully joined FEAS (Federation
of Euro-Asia Stock Exchanges), which held its
annual meeting in Shiraz on September 21st,
2005. Also, ISX has successfully joined the Union
of Arab Stock Exchange in June 2006. and joined
the Arab SE Federation in June 2006.
The most important event in 2009 was lunch the
Automation in Iraq stock exchange for the first
time in Iraq, in April 19th 2009, the second things
increasing the sessions to five in November 2009. The ISX signed Data Feed Agreement with
MUBASHER to distribute the ISX data and
accordingly enable its interested subscribers
access to the delayed and real-time market
information via the Internet, satellites and other
communication networks. Mubasher shall
disseminate the Data in Arabic and English in
real-time or delayed basis through its online and
offline network in 2010.
ISX has organized a number of training courses
for brokers and training courses for the IT staff
and other ISX employees. These training courses
include Automation Trading in ISX and run TWS
for the brokers, ELECTRONIC SYSTEMS (Equator
& Horizon SYSTEMS).
The ISX publishes a monthly newsletter called the
Capital Market. Published in Arabic, the Capital
Market covers all financial events which happen
within the ISX and the listed companies. The Iraq
Stock Exchange publishes its information in the
website www.isx-iq.net.
The market is where the investments,
exchange stocks, purchasing and selling takes
place. It is considered one of the channels in
which funds can flow between persons and
commissions through different sectors that
may help to mobilize and develop financing
and financial channels in order to give
readiness for different investments.
The world financial crises didn’t affect the ISX, I
believe that because Iraq Stock Exchange is still
a small market and we don’t work very closely
with banks and insurance companies we didn’t
have credit problems. We at the ISX are doing our
best to transform our exchange to meet or
exceed the standards in the region.
3 - on the status of the filing after the
completion of the implementation of the plan to
register all companies to contribute and to
allow circulation electronically. Follow-up of
joint stock companies to implement
mechanisms to increase capital and
capitalization of profits and the distribution of
profits through the deposit center in
cooperation with the banks for their execution.
FUTURE OUTLOOK
Iraq Stock Exchange official financial
investment and trading securities in Iraq, we
can identify the following goals for 2010:
1 - Work to Issue the New Securities Law, who
worked by the Commission from a number of
Board of Commissioners of the Securities
Commission and a number of Board of
Governors of the Iraqi market for securities and
ISX CEO during 2006 and 2007. And the
issuance of regulatory instructions that would
actively promote investment in the Iraqi Stock
Exchange and the creation of mechanisms to
patterns of new investment were not to exist in
Iraq before.
2 - complete electronic applications for e-
trading system and the status of the filing
through the application of trading via the
Internet and agree on the organization of the
mechanisms of the guarantor banks Custodian
Banks. And attract new investment patterns
that were not valid or allowed for investment
activity in the private sector.
4 - broadening the base of the brokerage firms
through the implementation of the Help the
admission of five brokerage firms annually,
beginning in 2010 and follow-up activity to the
mediation of the border met the required
standards of the Securities Commission.
5 - Encouraging the establishment of joint
stock companies with a combined capital of
Iraq and Iraqi non-Iraqi, and attract local and
foreign investment through the liquid.
6 - Developing active interest in the media after
the success of the organization of the Iraqi
market for securities, which is broadcast on the
screens of the Iraqi satellite channel every
Friday.
7- Issue new website for ISX