FEDERATION OF EURO-ASIAN STOCK EXCHANGES
ANNUAL REPORT JUNE 2012
EURASIAN TRADE SYSTEM COMMODITY EXCHANGE
In 2011 ETS steadily focused on building
our core business and continued to
reinforce the leading positions on the
market of exchange trade.
Mr. Kurmet Orazayev
Chairman of the Board
A year of 2011 proved to be an encouraging
period for Kazakhstani market. It has been
noted that commodity trade has potential to
grow and further advance in Kazakhstan. In
2011 ETS steadily focused on building our core
business and continued to reinforce the leading
positions on the market of exchange trade.
The combined trade turnover exceeded more
than US$ 2 bill as of 2011 whereas company’s
financial indicators increased by 10 times since
its foundation.
Our customers continue to benefit from
our substantial investments in information
technology. Throughout 2011, we advanced
our technology on several fronts. An important
development for ETS was the establishment
HISTORY AND DEVELOPMENT
Building on contemporary trade infrastructure
on the commodity exchange, ETS serves the
investment needs of our customers.
Eurasian Trade System was founded in 2008
on behalf of President of the Republic of
Kazakhstan. With its strategic partners Regional
Financial Center of Almaty city JSC and stock
exchange “Russian Trading System” the project
is mainly aimed to form price indices on the
country strategic goods. It ensures the data
transparency, the decrease of intermediary
costs when buying and realizing goods as well
as setting fair prices for the ultimate consumers
and sellers.
ETS focuses on driving efficiency through lower
costs, consumer alignment and technology
improvement. As a result a full-fledged technical
center has been created on the basis of ETS
in Almaty city. The center is entirely supplied
with the recent equipment and security system.
Both spot and derivative market have been
provided with contemporary trading system as
well as auction trading system to any underlying
asset which enables reliability and high pace of
conducting transactions.
of the indispensable exchange infrastructure.
It enables major operators of internet trading
to enter Kazakhstani market which became an
inherent part for further dynamic growth of the
market.
Additionally, ETS continued to execute on
product launches and global expansion that
will smooth the way for the advanced market.
We have initiated the successful cooperation
with International Association of Exchanges
of the Commonwealth of Independent States
countries (IAEx CIS), Federation of Eurasian
Stock Exchanges (FEAS), The London Gold
Market Fixing Limited (TLGMFL), Hong Kong
Exchanges and Clearing Ltd (HKEx).
Moreover ETS delivers clearing solutions
and services through an independent central
counterparty. Our clearing house brings the
security and fulfills the contract obligations
and business transactions. Clearing house
guarantee funds are well-capitalized with
collateral from its clearing firms. However ETS
has been taking part in the build-up of legal and
regulatory documents for the development of
organized commodity markets in Kazakhstan
that should satisfy international standards.
FUTURE OUTLOOK
The past year demonstrated the cautious return
of certainty to the commodity market. Diversity
across our business is a key asset which implies
enhancing the product line. Hence it enables us
to maintain effectiveness and profitability during
unpredictable macroeconomic cycles.
Moreover we expanded our strategic initiatives
that include the chairmanship of ETS in the
committee on development of commodity
markets with IAEx CIS since November 2011.
As we look ahead in 2012 and beyond, we
believe that international collaboration creates
long-term value for our shareholders and
customers.
Looking ahead, our core strengths of providing
high level of service, technology platforms
and secure central clearing counterparty will
continue to benefit market participants. We
appreciate our shareholders, customers and
partners for their confidence and support in the
development of our project.
ETS’ chairmanship in the Committee on
the development of commodity markets
promotes the formation of the unified exchange
infrastructure, and also integrity of commodity
markets within the bounds of Eurasian
Economic Community (EurAsEC). Moreover
ETS aims to put efforts and build the leading
electronic venue for the procurement agency,
particularly the government procurement.
Hence the launch of regional indices on the
strategically significant goods is a necessary
process to be implemented in the nearest
future.
Using our best practices we are able to create
the favourable competitive environment for both
consumers and sellers in pursuit of bringing the
equal access for participants.
ETS carries on the work of the formation of
regulatory standards of exchange trade in
Kazakhstan in accordance with international
practices. On behalf of the President’s
administration of RK, ETS jointly with National
Bank of the RK and Ministry of environment
protection of the RK is involved in development
of projects on the launch of gold as well as
emission trading via our exchange.
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