inter-exchange federation affairs - WFE World Federation of Exchanges

Inter-Exchange Federation Affairs 25 August 2009         African Securities Exchanges Association Asian and Oceanian Stock Exchange Federation Federation of Euro-Asian Exchanges Federation of European Securities Exchanges Federation of Ibero-American Bourses South Asian Federation of Exchanges Union of Arab Stock Exchanges World Federation of Exchanges World Federation of Exchanges Inter-exchange federation affairs April 2009 1 African Securities Exchanges Association President : Secretary General : Website : Contact : Mr. Maged Shawky Sourial, Chairman of The Egyptian Exchange Mr. Donald Ouma www.africansea.org douma@nse.co.ke 1. Summary of Highlights 1. The ASEA 2008 Handbook is accessible now accessible on the ASEA website: www.africansea.org; 2. The Association is collaborating with Africa Investor to market the 2009 Africa Investor Index Series Summit and Awards in association with NYSE Euronext, scheduled to take place on September 22nd 2009 at the premises of NYSE; 3. The 13th Annual General Meeting and Conference of the Association will be held from 2 nd – 4th December 2009, in Abuja, Nigeria and will be hosted by the Nigerian Stock Exchange. The link for more conference information and registration is www.aseaabuja2009.com. 2. The name of the Association is “African Securities Exchanges Association” (ASEA). 3. When was the association created? The African Stock Exchanges Association (ASEA) was registered in Nairobi on 13 th November 1993 with the object of, inter alia, establishing an association for systematic mutual cooperation, exchange of information, materials and persons, mutual assistance and joint programs between the members. The membership of the association is open to any Stock Exchange or nascent Stock Exchange located in the African region. The Association has been holding annual conferences, which are hosted by different members each year where issues relevant to the growth of the regional capital markets are addressed. 4. Where is the secretariat located? ASEA Secretariat Nairobi Stock Exchange Nation Centre, First Floor, Kimathi Street, PO Box 43633, Nairobi 00100, Tel: +254 20 2831000 Fax: +254 20 224200 www.africansea.org 5. What is the main role of the association? 1. To establish an association for systematic mutual cooperation, exchange of information, materials and persons, mutual assistance and joint programmes between the members; 2. To promote the establishment of securities exchanges in all African countries; 3. To promote the development of common standards of training and professionalism among members of the Association and other market players; 4. To promote common standards of issuing, listing, trading and settlement of securities; 5. To facilitate the development and promotion of products and services for Africa‟s capital markets; World Federation of Exchanges Inter-exchange federation affairs April 2009 2 To assist members in the promotion and development of the range of services associated with the capital markets; 7. To develop and promote a data bank and information system for the mutual benefit of members; 8. To study, and research on matters of mutual interest to members; 9. To disseminate information; produce materials in all media, hold conferences, seminars and exhibitions, and conduct other public education activities relevant to the interests of members; 10. To ensure that the views and interests of the Association are promoted in the appropriate worldwide fora; and 11. To do all other things, not inconsistent with the foregoing as shall promote the objects and powers. 6. Members of the Association Following the twelfth (12th) annual general meeting of the Association on November 9th 2008 which ratified the formal admission of the Central Securities Clearing System Ltd. (Nigeria) as an Observer member and the South Asian Federation of Exchanges as an affiliate member, the membership of the Association is as follows:Full Members 1. Bolsa de Valores de Moçambique 2. Bond Exchange of South Africa 3. Botswana Stock Exchange 4. Bourse de Casablanca 5. Bourse Régionale des Valeurs Mobilières de l‟Afrique de l‟Ouest 6. Dar-es-Salaam Stock Exchange 7. Egyptian Exchange (formerly Cairo and Alexandria Stock Exchanges) 8. Ghana Stock Exchange 9. JSE Ltd 10. Khartoum Stock Exchange 11. Libyan Stock Market 12. Lusaka Stock Exchange 13. Namibian Stock Exchange 14. Nairobi Stock Exchange 15. Nigerian Stock Exchange 16. Malawi Stock Exchange 17. Uganda Securities Exchange 18. Stock Exchange of Mauritius 19. Stock Exchange of Swaziland 20. Zimbabwe Stock Exchange Observer Member 1. Central Securities Clearing System Ltd. (Nigeria) Affiliate Member 1. South Asian Federation of Exchanges (SAFE) The full members represent twenty five (25) African states - Benin, Botswana, Burkina Faso, Côte d'Ivoire, Egypt, Ghana, Guinea Bissau, Kenya, Libya, Mali, Malawi, Mauritius, Morocco, Mozambique, Namibia, Niger, Nigeria, Senegal, South Africa, Sudan, Swaziland, Tanzania, Uganda, Zambia, Zimbabwe. The African states which the ASEA members represent belong to the following regional economic groupings within Africa alone – • • • Economic and Monetary Community of Central Africa (CEMAC) Intergovernmental Authority on Development (IGAD) Southern African Development Community (SADC)/Southern African Customs 3 6. World Federation of Exchanges Inter-exchange federation affairs April 2009 • • • • • • Union (SACU) West African Economic and Monetary Union (UEMOA) Community of Sahel-Saharan States (CEN-SAD) East African Community (EAC) Economic Community of Central African States (ECCAS) Economic Community of West African States (ECOWAS) Middle East Free Trade Area (MEFTA); 7. Executive Committee Meetings At their Executive Committee Meeting on April 7th 2009, hosted by the Egyptian Exchange, in Cairo, Egypt, the Marketing and Promotions Taskforce of the Association was mandated to initiate discussions with Dow Jones/STOXX Ltd., and FTSE Group with a view to choosing amongst them a partner to develop, launch and manage an ASEA index. 8. Conferences The Uganda Securities Exchange (USE) hosted the twelfth (12th) Annual Conference of the African Securities Exchanges Association (ASEA) which took place at the Kampala, Serena in Kampala, Uganda from 9 – 11 November 2008. It coincided with the tenth (10th) anniversary of the first listing on the USE. The theme of the conference was “AFRICA ON THE MOVE: Capital Markets Driving Economic Transformation”. Participants were welcomed to the conference by the Minister of State for Finance, Planning and Economic Development (General Duties), of the Republic of Uganda, Hon. Fred Jachan Omach. The President of the Republic of Uganda, His Excellency President Yoweri Kaguta Museveni officially opened the Conference. The President stressed the need for stock exchanges to be at the forefront of providing avenues for mobilizing savings and investments from which African governments can benefit by raising funds through issuance of bonds to fund infrastructure. 9. Upcoming Conferences 10. The thirteenth (13th) ASEA AGM and Conference will be hosted by the Nigerian Stock Exchange in Abuja, Nigeria from 2 – 4 December 2009 in Abuja, Nigeria and will be hosted by the Nigerian Stock Exchange. The link for more conference information and registration is accessible on www.aseaabuja2009.com 11. Which are the governmental bodies at the national or international level that the association interacts with, if any? Partnerships and Alliances 1. Cooperate with other regional bodies such as the New Partnership for Africa‟s Development (NEPAD), and the United Nations Economic Commission for Africa (UNECA) to promote the role of the Association in capital mobilization and economic development strategies by: a. Issuing joint publications or papers; b. Organizing joint events discussing issues on the African investment front; c. Displaying our publications at their events; d. Having hyper links on their websites to the ASEA website 2. Ensure presence in the Regional bodies such as CEMAC, COMESA, EAC, ECOWAS, MEFTA, SADC and UEMOA. 3. Cooperate with other significant associations in the exchange industry, such as World Federation of Exchanges (WFE), International Organization of Securities Commissions (IOSCO), the Federation of Euro-Asia Stock Exchanges (FEAS), the South Asian World Federation of Exchanges Inter-exchange federation affairs April 2009 4 Federation of Exchanges (SAFES), exchange associations in the Greater Arab Free Trade Area (GAFTA) and the Gulf Cooperation Council (GCC) in the following areas: a. Attend their conferences and meetings; b. Apply for affiliate membership; c. Display our publications at their events; d. Having hyper links on their websites to the ASEA website. Branding and Promotional Events 1. Create a distinct corporate brand and identity for the ASEA to be available on relevant publications and for sponsorships of relevant events; 2. Record a professionally, done promotional video providing a brief about ASEA and its member exchanges which serves as a promotional tool for ASEA to be played at all our conferences and road shows; 3. Conduct an annual road show to promote ASEA as well as the individual members‟ capital markets mainly covering; 4. Intensify the cooperation with African Investor and other similar organizations through the following: a. Preparation of periodical articles to be published in their magazine and newswire; b. Aligning their events to promote the Association either through an attached or separate event or a road show to leverage on the attendees at their events at more affordable costs to the Association; c. Displaying our publications at their events. Information Services 1. Continue to upgrade and update the ASEA website; 2. Provision of ASEA statistics to reputable global data vendors such as Bloomberg, Reuters, and Thompson Watch, amongst others. Publications 1. Print a brochure about ASEA (other than the annual yearbook) that can be distributed in events or sent to key people in the field to increase awareness of ASEA; 2. Continue to issue the ASEA yearbook with more informative data, which conforms to global international standards and facilitates the investment decision making process of the regional and global investor. Membership Drives 1. Approach nascent and existing African Exchanges to offer them our technical assistance and membership. 2. To encourage co-operation among the members in order to promote the development. World Federation of Exchanges Inter-exchange federation affairs April 2009 5 Asian and Oceanian Stock Exchanges Federation President : Secretary General : Website : Contact : Mr. Ito Warsito, President Director of Indonesia Stock Exchange Mr. Tetsuo Otashiro www.aosef.org secretariat@aosef.org  from April 2009 submission Objective: The objective of the Federation is to exchange of information and to promote mutual assistance among its members, with a view to developing the securities markets in the Region. Background: The history of the AOSEF goes back to 1978 when top executives of stock exchanges in East Asian countries first gathered in Tokyo on the occasion of the Centennial Anniversary of Japanese securities markets. The gathering was followed by another meeting in Tokyo in 1982, at which the East Asian Stock Exchanges Conference (EASEC), an informal, fraternal organization, was formed. In 1990, with the adoption of a charter and also with admission of two stock exchanges in the Oceanian region at its annual meeting in Manila, the organization was formalized and renamed as the East Asian and Oceanian Stock Exchanges Federation (EAOSEF). In 2005, with the admission of the Bombay Stock exchange and the National Stock Exchange of India, the organization was renamed as the Asian and Oceanian Stock Exchanges Federation (AOSEF). AOSEF Members—19 exchanges (As of January 2009) Australian Securities Exchange Bombay Stock Exchange New Zealand Exchange Hochiminh Stock Exchange Osaka Securities Exchange Hong Kong Exchange and Clearing Philippine Stock Exchange Indonesia Stock Exchange Shanghai Stock Exchange Jasdaq Securities Exchange Shenzhen Stock Exchange Korea Exchange Singapore Exchange Bursa Malaysia Taiwan Stock Exchange Mongolian Stock Exchange The Stock Exchange of Thailand National Stock Exchange of India Tokyo Stock Exchange Group World Federation of Exchanges Inter-exchange federation affairs April 2009 6 Activities: Completed study / task forces Cross Border Trading Study of Market – Market Linkage Models Proposed linkage models Review on post-demutualization and post-listing Debt Market Structure Regulation vs Self-regulation Corporate Governance Exchange‟s Information Management Follow-up report on Cross Border Trading Market Information Sharing Liquidity of Small Cap Stocks Harmonization and Coordination Project On-going project / study forces / task forces Customer Financial Literacy Impact to Exchange Business Structured Products New Markets Network in Network IT/ Technology work shop (October 2006, November 2007 ) Market Information work shop (July 2005, October 2006, November 2007) Market Surveillance work shop (Summer 2009) Others Asian and Oceanian Stock Exchanges Federation – calendar 2009-2010 Asian and Oceanian Stock Exchanges Federation (AOSEF) calendar: Month Summer 2009 October 2009 Spring 2010 Fall 2010 Meeting Market Surveillance Work Shop AOSEF Working Committee AOSEF General Assembly AOSEF Working Committee AOSEF Working Committee Host / Place BSE / NSE / India TSE / Japan IDX / Indonesia BSE / NSE / India Secretariat: AOSEF Secretariat Tokyo Stock Exchange Group, Inc. Corporate Communications secretariat@aosef.org AOSEF Website: http://www.aosef.org/ World Federation of Exchanges Inter-exchange federation affairs April 2009 7 Federation of Euro-Asian Stock Exchanges President : Secretary General : Website : Contact : Mr. Hüseyin Erkan, Chairman & CEO, Istanbul Stock Exchange Mr. Aril Seren www.feas.org secretariat@feas.org Mission Statement The mission of FEAS is to help to create fair, efficient and transparent market environments, with little or no barriers to international trade, within the operating regions of FEAS members. In order to facilitate the objectives of FEAS, members are encouraged to work toward the harmonization of rules and regulations with “best practices” and adoption of new technology, for trading and settlement. These actions will further promote the development of the member markets and provide cross border trading opportunities for securities issued within FEAS member countries. Objectives Objective I: Promote „corporate governance‟ for listed companies as indicated in the joint FEAS/OECD “Best Practices for the Development of Stock Exchanges in Transition Economies” guide. Facilitate timely disclosure of material events to achieve transparency through effective dissemination of information. Objective II: Achieve convergence among FEAS members in their: • listing requirements, • trading rules and software, and • the settlement cycle. Objective III: Promote mechanisms for fair reliable, transparent and efficient securities trading and settlement. Objective IV: Help facilitate greater awareness and visibility for the region‟s securities and investment opportunities. Objective V: Help promote the listing of „investment grade‟ securities in the respective Home markets of the Region. Objective VI: Help create linkages among the regions‟: • intermediaries, • data providers, • settlement and custody institutions, • stock exchanges; and also • make efforts to initiate cooperation among Region‟s Securities Commissions. Objective VII: Promote and encourage research and training for FEAS members and their personnel. World Federation of Exchanges Inter-exchange federation affairs April 2009 8 2009 Mandates:  Publication and Distribution of the FEAS Annual Report (FEAS BOOK) in May 2009 and FEAS Magazines (INTER FEAS) in August( 2009), November (2009) February (2010)  Continuation of the Revenue and Expense Analysis from 2007 through 2008.  The 15th Annual General Assembly Meeting to take place in Budva, Montenegro and to be hosted by the Montenegro Stock Exchange, in 24-26 September, 2009  The 3rd Media Relations Workshop will be held in Istanbul.( Date tbd)  The Corporate Governance Workshop will be held in Istanbul (Date tbd)  The Serial Seminars for members of the media to continue.  Rules and Regulation Task Force was re-instated.  FEAS 5 Year Strategy and Mission Statement will be reviewed and changes will be submitted to the General Assembly for approval FEAS Task Forces/Publications  Media Relations o A workshop aimed at University Students, Journalists and Staff from FEAS members in order to instruct all participants on the use of information on financial markets to be organized to better understand the working of financial markets. o In relation to the FEAS Movie Project, FEAS Movie storyboards will be evaluated and decide upon the production will start after the General Assembly approval.  Media Training o FEAS established a training center in Istanbul at the Istanbul SE to provide members with training programs. The first activity was held in July 7-8, 2008 as the FEAS Media Relations Workshop for FEAS members where they have discussed „‟How to interact with Media during times of crises‟‟ where several speakers from FEAS Region talked about various instances of crises and how they have been communicated with the local media. The second Workshop will be held in Istanbul. The date will be determined.  FEAS Regional Index —Dow Jones Indexes, a leading global index provider, and the Federation of Euro-Asian Stock Exchanges (FEAS) launched the Dow Jones FEAS Indexes on Friday, June 5. o Dow Jones FEAS Composite Index (benchmark) currently includes component stocks of 10 of the 32 member states of the Federation of Euro-Asian Stock Exchanges. The exchanges included are Abu Dhabi (UAE), Amman (Jordan), Bahrain (Kingdom of Bahrain), Belgrade (Serbia), Bulgaria (Bulgaria), Istanbul (Turkey), Karachi (Pakistan), Macedonia (Republic of Macedonia), Muscat (Oman), and Zagreb (Croatia). o The Dow Jones FEAS Middle East/Caucasus Index currently includes stocks from the following four FEAS member exchanges: Abu Dhabi, Amman, Bahrain, and Muscat. o The Dow Jones FEAS South East Europe Index measures the performance of companies in the following five FEAS member exchanges: Bulgaria, Zagreb, Macedonia, Belgrade and Istanbul.  FDC (FEAS Data Center) o The FDC has been reformatted and cleared of data with a new business purpose in mind. As of the end of July two FEAS members‟ end of day data is being posted daily. A total of 5-6 members‟ end of day data available by the end of 2009.  Affiliate members (CSD‟s) o Affiliate Member TF is planning to organize a workshop during the second half of October in Turkey for Post Trade Institutions. World Federation of Exchanges Inter-exchange federation affairs April 2009 9  Research and Development o The Research TF prepared a study on Regional Indices for the Working Committee and they will be working on „‟Establishing Cross Border linkages in the FEAS Region‟‟ for the General Assembly.  Corporate Governance o A Corporate Governance Workshop, with the participation of UN based SRI will take place together with the Media Workshop in Istanbul.  Rules and Regulation Task Force o This task force is reviewing the FEAS Rule Book in light of MiFID regulations. Recommendations by the task force will be reviewed for adoption. The leader of this task force is the Bulgarian Stock Exchange  FEAS Blue Chips Listing Task Force o This task force will conduct the members‟ requirements on detecting and approaching the blue chips in their region, increasing the awareness on blue chips and facilitating investment in them.  Bilateral Exchange Program o This program gives financial support from FEAS Budget for members‟ staff from each member to visit another member for the purpose of training and exchange of views and experiences. o Information about the visiting schedule and issues of interest are published on the FEAS Website.  FEAS Publications o According to the decision taken at the 14th General Assembly in Abu Dhabi, there will be The FEAS Annual Report ( FEAS Book annually in the spring and 3 magazines (INTER FEAS) prepared to supplement around 10 members in each edition. The Newsletter supplement will continue to be produced monthly.  Revenue and Expense Analysis o According to the decision taken at the 14th General Assembly in Abu Dhabi, UAE the members of FEAS have decided to conduct the survey only every two years. This year, FEAS will conduct the survey with FEAS members to cover 2007 and 2008. The results are currently being compiled. 2009 Calendar of Meetings Date September 24 September 25 September 26 October 6 October 15-17 November 1920 Event FEAS Working Committee FEAS 19th Executive Committee Meeting FEAS 15th Annual General Assembly SASE Annual Conference Host Montenegro Stock Exchange Montenegro Stock Exchange Montenegro Stock Exchange Sarajevo Stock Exchange Place Budva Budva Budva Sarajevo, Bosnia Herzegovina Zagreb Stock Exchange Annual Zagreb Stock Exchange Novagrad, Croatia Conference BELEX International Conference Belgrade Stock Exchange FEAS FEAS Belgrade, Serbia Istanbul, Turkey Istanbul, Turkey 10 January 2010 Corporate Governance Seminar January 2010 Media Workshop World Federation of Exchanges Inter-exchange federation affairs April 2009 Federation of European Securities Exchanges (FESE) President : Secretary General : Website : Contact : Mr. Spyros Capralos, Chairman, Athens Exchange Ms. Judith Hardt www.fese.eu info@fese.eu The Federation of European Securities Exchanges (FESE) represents 42 Securities Exchanges (in equities, bonds, and derivatives) through 23 Full Members from all EU Member States and Iceland, Norway and Switzerland as well as 7 Corresponding Members from European emerging markets. Through its members‟ activities on a global scale, FESE enjoys links with the regulatory community and industry from around the world and works closely with the European Association of Central Counterparty Clearing Houses (EACH) and European Central Securities Depositries Association (ECSDA) in particular in the context of the Code of Conduct on Clearing and Settlement. The main counterparts of FESE at the European level are the European Commission, the European Parliament, the EcoFin Council, the European Securities Committee (ESC), the Committee of European Securities Regulators (CESR) and the European Securities Market Group (ESME). At the international level, FESE engages in a dialogue especially with the CFTC, the SEC, and IOSCO. In all of its activities, FESE is guided by the following overarching objectives:     Fostering the global competitiveness of European exchanges through representation of their interests in the EU and international policy affairs; effective Promoting public recognition of the exchanges and their contribution to the European and global economy; Providing a forum for open and forward-looking debate on capital markets; Providing a network for exchange of views, cooperation and learning among members. FESE is a Member of the European Parliamentary Financial Services (EPFSF) and is registered on the European Commission's 'Register of Interest Representatives'. In addition FESE has regular contact with the World Federation of Exchanges and is one of the founding members of the European Capital Markets Institute (ECMI) World Federation of Exchanges Inter-exchange federation affairs April 2009 11 Activities of the FESE Task Forces and Committees Regulatory activities Business Continuity Task Force  The proposal for a Directive on Identification and Designation of European Critical Infrastructure (criteria to define ECI)  The work of the CIP Expert groups  Pandemic Flu - Measures in place in the different exchanges Clearing and Settlement Task Force  Code of Conduct  CESR work on post-trade regulatory barriers  ESCB-CESR‟s recommendations  Securities Law Directive (Legal Certainty; Giovannini barriers 3, 9, 13 and 15)  Differences in standard settlement periods (Industry Barrier 6) Company Law and Corporate Governance Task Force  Accounting: IFRS and the governance of the IASB  Remuneration in the financial sector and remuneration of directors  Regulatory and supervisory standards for hedge funds, private equity and other systemically important market players Derivatives Task Force  Assessing the need for post-trade policy action in derivatives markets  Analysing the functioning of the OTC markets in the context of post-trading  MiFID Level 3 and Commodities Review  Analysing proposed improvements to OTC markets (transparency; standardisation) Global and Cross-Sectoral Issues Task Force  The future of European Financial Supervision  The transatlantic agenda  The work of the European Securities Markets Expert Group (ESME) in the context of its analysis of the legal coherence of the EU securities framework Market Abuse and Transparency Obligations Task Force  The Commission‟s review of the Transparency Obligations Directive and Market Abuse Directive  The work of the relevant ESME Sub-Groups  The industry initiatives in the field of removing the relevant Giovannini Barriers MiFID Task Force  Monitoring the implementation of MiFID  Input to the Commission on MiFID Review and ex-post assessment Prospectus Directive Task Force  The Commission‟s assessment of the functioning of the PD  The work of the Prospectus Sub-Group of ESME Economics and Statistics Committee  Publication of standard and reliable statistics - based on the sound FESE Statistics Methodology  Provide standardised metrics able to describe the new post-Mifid European trading environment  Stress relevance and role of regulated Exchanges in the post-MiFID environment, with particularly reference to the FESE Statistics methodology  Publication of the European Equity Market Report and extension to Systematic Internalisers and crossing-networks  Provide economic analysis on specific topics related to securities markets  Evaluate the adoption of innovative analytical tools aimed at improving the acquisition, storage and distribution of quantitative information on securities markets functioning  Work with CESR on statistics methodology  Improvement to the FESE statistics and index databases  Projects with the ECB and BIS  Several pieces of researches including: World Federation of Exchanges Inter-exchange federation affairs April 2009 12        Update of the Share Ownership survey Update of the FESE European Exchange Report Listed Securities Survey (including sector and size breakdown) Evaluation of Economic Impact of Financial Services Action Plan XBRL developments in FESE Member exchanges Trading of non-EU shares in European exchanges Securitised derivatives typologies The 14th FESE Convention Each year the Federation of European Securities Exchanges hosts an annual conference which focuses on issues affecting European financial markets – our event is considered to be unique in the securities markets world as it is an exclusive event organised with input and full participation from the European exchange industry. The 14th FESE Convention in Brussels will open with a gala dinner on Tuesday, 1st December followed by a full day conference on Wednesday, 2nd December 2009. Around 300 delegates attended our last Convention. In 2009 the Convention will focus on the matters that are crucial to the exchange industry, in particular:      Facing global challenges in the aftermath of the crisis Strengthening global derivatives markets Meeting the needs of the buy-side Ensuring fairness in secondary markets Developing domestic markets in a global environment We are pleased to confirm that our programme for 2009 promises again to bring together a unique blend of EU decision makers, Members of the European Parliament, Presidents and CEOs of Europe‟s exchanges, high level industry experts, European and International regulators. For more information, please visit the following link http://www.fese.eu/en/?inc=cat&id=32 FESE – calendar 2009 Meeting FESE Board Date 16th October 2009 29th September 2009 1st December 2009 1st December 2009 2nd December 2009 15th October 2009 Venue Cyprus FESE Management Committee Göteborg Brussels Brussels Brussels Cyprus FESE General Assembly FESE Convention FESE Budget & Audit Committee World Federation of Exchanges Inter-exchange federation affairs April 2009 13 Ibero-American Federation of Exchanges (FIAB) Chairman / President : Secretary General : Website : Contact : Mr. Patricio Peña Romero, Presidente del Directorio de la Bolsa de Valores de Quito Mrs. Elvira Maria Schamann www.fiabnet.org correo@fiabnet.org Mission Foster cooperation among its Members, in order to promote the development and advancement of their securities markets, in the best interests of all market participants; Cooperate with national and international entities having legislative, regulatory, or other functions related with financial and securities markets with the aim of ensuring homogeneous standards and regulations as to securities issuance, circulation, distribution, and registration; trading; issuers; brokers; securities markets; securities depositories and custodians; as well as in connection with any fiscal and other issues deemed to be relevant to market development; Promote integration of the Federation‟s securities markets, stimulating interactivity among market participants as well as the free circulation, within their respective jurisdictions, of securities issued in any of its Members home countries; Encourage the establishment of rules and procedures ensuring solvency, competence, legitimacy, and fair information disclosure to all savers investing through Member Exchanges. FIAB projects/publications          Alliances, consolidations, initiatives of demutualization of stock exchanges and other structural changes in the international exchanges arena Evaluation of its impact on Latin American securities markets. Strengthening and development of the stock market in the region FIAB –IDB project (**) Risk management, mechanisms and strategies in member exchanges FIAB Library: online database. Market Highlights 2009 FIAB Monthly Statistical Report FIAB Fact Book 2009 FIAB Quarterly News FIAB Library: Semiannual updates from member exchanges libraries. On-Going Project Financed in full in Dec.08 On-Going Project On-Going Project Dec. 2008 On-Going Project On-Going Project On-going Project (**) Financed in full, the objective of the project is to support the integration (cross border trading) of the region‟s securities markets. Accordingly, the purpose of the regional public good is to identify and agree on regulations at a regional level, to be eventually transferred to regulators, on mutual World Federation of Exchanges Inter-exchange federation affairs April 2009 14 recognition of publicly traded securities listed on the region‟s respective markets and to standardize codification criteria and standards for information on issuers listed on the stock exchanges, their securities, and relevant data, enabling each of them to have a public, real-time system for compiling and publicly disseminating that information locally and regionally. The project consists of preparing: (i) a consensus proposal that promotes standardized criteria at a regional level for the mutual recognition of publicly traded securities and for brokers‟ cross-border trading; and (ii) a proposal for a system for compiling and disseminating issuer information and moving toward the adoption of such a system. Performed Events during 2009 Working Sub-Committee Meeting (**) Executive Committee Risk management experiences in FIAB exchanges and its tendencies 16th and 17th April 15th May 9-10 July San Jose, Costa Rica Buenos Aires, Argentina Quito, Ecuador (**) FIAB SC set the following task forces to work during 2009: a) Markets development task force: will work, mainly, in the analysis of risk administration mechanisms; b) Products and markets task force: will collaborate taking a close look to innovative products in the region, such as ETFs issue, commercial papers, and structured products; c) Competitive scenario and tendencies in regulation: this task force will follow the work and proposals by IOSCO and COSRA, with support from FIAB Secretariat. FIAB forthcoming events 2009 Working Sub-Committee Meeting Executive Committee General Assembly FIAB Annual Meeting – WFE Emerging Markets forum IIMV (Ibero-American regulators)-FIAB joint meeting Dates 6th September 6th September 7th September 7th and 8th September October (date tbc) Place Lima, Peru Lima, Peru Lima, Peru Lima, Peru Santiago, Chile World Federation of Exchanges Inter-exchange federation affairs April 2009 15 South Asian Federation of Exchanges President : Secretary General : Website : Contact : Mr. Adnan Afridi, Managing Director & CEO, Karachi Stock Exchange Mr. Aftab Ahmad Ch. www.safe-asia.com info@safe-asia.com  from April 2009 submission  South Asian Federation of Exchanges (SAFE) is an organization for regional cooperation amongst securities market participants of South Asia comprising Twenty Three (23) member entities, including Stock Exchanges, Commodities Exchanges, Central Depositories and Clearing Companies, of eight South Asian Countries (i.e. Bangladesh, Bhutan, India, Maldives, Mauritius, Nepal, Pakistan and Sri Lanka) and UAE. SAFE is a “Not for Profit” organization, established in January 2000 in Bangladesh on the initiative of the Chittagong Stock Exchange and continued working till the mid of year 2005 through its Secretariat in Bangladesh. The Secretariat is now permanently located at Islamabad – Pakistan.   Objective  Prime objective of SAFE is to provide a forum for regional cooperation and to facilitate the development of securities market in the South Asian region for mutual economic growth and development. The objectives are defined by the charter of SAFE and all activities undertaken by the Federation have to fall with in the ambit of these pre-defined objectives. To encourage co-operation among the members in order to promote the development of their respective securities markets. To work towards common standards including international accounting standards and best business practices in securities markets. To represent the members in related international forums. To encourage cross border listing and trade in the region. To co-operate in human resource development and the transfer of technology. Other issues of common interest as and when they arise.       SAFE Highlights:  Launching of South Asian Index: The Federation has launched its first ever DOW JONES SAFE 100 Index on the occasion of 8th General Assembly held on March 11, 2009 at Abu Dhabi, UAE. The index is a market capitalization weighted, free float adjusted index to track the performance of leading stocks of the prominent sectors listed on the bourses of the region. 16 World Federation of Exchanges Inter-exchange federation affairs April 2009 It has paved the way for the introduction of new products in the region such as ETFs and as well as Futures trading based on this index.   Status of SAFE: SAFE is a SAARC Recognized Body and NOT FOR PROFIT organization. New Memberships: Since second half of 2008, SAFE has awarded new memberships to two more entities, VIZ: MCX Stock Exchange of India (MCX-SX) and Abu Dhabi Securities Exchange (ADX), UAE. With the addition of these 2 new entities, total membership of SAFE has grown to 23. Publication of Quarterly Newsletter: Soon after its inception, SAFE Secretariat started taking out publication of the SAFE quarterly Newsletter solely for the purpose of reporting its activities to its member exchanges. However, this medium has rapidly evolved, over the years, into a tool of interexchange communication. Each publication now boasts extensive coverage of member entities that have the opportunity of publicizing news and events from their respective regions. Second International Training Program Held at Islamabad: SAFE organized its Second International Training Program titled: Executive Course for Exchange Managers and Compliance Officers at Islamabad from August 25, 2008 to August 30, 2008. That was a collaborative effort with Futures and Options Association (FOA) and National Institute of Banking and Finance (NIBAF). The course focused on international standards for the operation and management of securities and derivatives exchanges. A total of 60 nominations were received for the program but number of participants was, subsequently, reduced to 52 due to eleventh hour withdrawal by Indian participants from the event. The program was formally launched on 25th August, 2008 after having inaugurated by H.E. Mr. Robert Gibson, British Deputy High Commissioner in Pakistan. The ceremony was also attended by Mr. Adnan Afridi, MD, KSE and Vice Chairman, SAFE and host of other dignitaries. The course contents were quite exhaustive. It was conducted by Mr. Norwood Trevor, trainer from FOA, exceedingly well. The closing ceremony which also included certificate distribution to the training program participants was held after the last training session on 30th August , 2008. It was chaired by Mr. R.D.Ahmed, Chairman, ISE who also gave away the certificates to the participants . On the sidelines of the training program, a Financial Roundtable was held on 25th of August, 2008 which was chaired by Mr. Belchamber, CEO, FOA and attended by Vice Chairman SAFE, Mr. Adnan Afridi, Secretary General SAFE, Mr. Aftab Ahmad Ch. and representatives of KSE, LSE, and ISE. Mr, Belchamber delivered a key note address on various issues being confronted by the exchanges. Daily compiling of market statistics of SAFE Exchanges: The SAFE Secretariat has completed the task of designing the template containing prominent indexes of South Asian regional exchanges. The Secretariat has been posting the template on the web site of SAFE for trial purpose which is being updated on daily basis. The trial runs of the template have been completed successfully and now efforts are under way to get it published by the prominent business newspapers of the South Asian region on daily basis. As and when the daily market statistics of SAFE exchanges start getting published, it will give further visibility to the Federation.    Future Plans:  Launch of ETF: SAFE Secretariat is hosting a conference of potential asset management companies jointly with ADX at Abu Dhabi during September/October this year for the purpose of launching its first ever ETF based on DJ SAFE 100 Index for the local Market. It may be mentioned that SAFE launched its South Asian regional index on the occasion of its 8th General Assembly which was held on March 11, 2009 at Abu Dhabi, UAE. Third South Asian Capital Markets Conference: Third thematic conference of SAFE which was scheduled to be held from January 28 to 30, 2009 in Mumbai, India had to be 17  World Federation of Exchanges Inter-exchange federation affairs April 2009  postponed due to unfortunate incidence of terrorist attack in Mumbai. It has been rescheduled and is now being held in the first quarter of 2010 in Mauritius. The Secretariat will keep updating its member entities about the event as and when its details are finalized. Titled as “Expanding the Asset Classes in the South Asian region”, it will be a collaborative effort with Multi-Commodity Exchange of India Limited. The Conference will be attended by capital market institutions, financial services industry, and regulatory authorities of South Asian region. SAFE Data Centre: Keeping in view the need for standardization of cross market data statistics, SAFE Secretariat has decided to work with some donor agency to help establish SAFE Data Centre thus paving the way for the provision of standardized regional markets statistics / data to the global investors. World Federation of Exchanges Inter-exchange federation affairs April 2009 18 Chairman / President : Secretary General : Website : Contact : Mr. Aomar Yidar, Casablanca Stock Exchange Dr. Fadi Khalaf www.arabstockexchanges.org info@arabstockexchanges.org 1. The name of the Union is Union of Arab Stock Exchanges 2. The registered office for the Union is Beirut – Lebanon 3. The Union was established to consolidate and develop ties of cooperation and coordination between the joint of Arab economic institutions, and to encourage Arab investment. 4. The union guidelines are : a. Coordinate action among its members. b. Facilitate the exchange of technical assistance in the areas of specialization. c. Contribute the unification of laws and regulations in this area. d. Overcome the difficulties of the Arab investment and expand its base. e. Diversify and promote technical investment in the Arab stock exchanges. 5. In order to establish the union‟s objectives, the following are some tasks that should be completed : a. Development, increase of efficiency and performance of the Arab Stock Exchanges, Clearing companies, and brokerage firms. b. Find the channels of communication between members of the Union so as to facilitate the inclusion of securities registered within the Union to serve the goal of developing Arab capital markets. c. To Work on the free circulation of stock between the Arab stock exchanges. d. Harmonization of regulations of the stock exchanges within the union. e. Assistance in the organization of new releases (bonds, shares or other securities), and urge the establishment of official bodies to review the relevant national issues and assistance in organizing and handling of such issues. f. Encourage the establishment of financial companies which carry out the functions of financial intermediation, especially the ones which carry out the functions of the coverage, promotion and marketing of new releases. g. To provide and exchange data and information between the members of the Union. h. To broaden the base of investment in securities through the dissemination of awareness between the Arab citizens. i. Assistance in expanding the centers and the establishments of stock exchanges and clearing companies and depository centers in the Arab countries through the provision of studies and expertise necessary to do so. j. Specialized training programs and conferences which contribute to the upgrading of employees of the members of the Union. World Federation of Exchanges Inter-exchange federation affairs April 2009 19 k. Preparation and participation in Arab and international programs related to stock exchanges. l. Issuance of bulletins and periodical reports which aim to strengthen ties among the members of the Union. m. Establishment of a website for the Union. n. Solving problems between the members and being the role of arbitration when requested to do so. o. Unification of terminology in the field of stock exchanges. p. Cooperation and coordination between the Arab world and their associations q. Cooperation and coordination with the international stock markets and their associations. r. Establishment of a database of all members of the Union. s. Any other tasks identified by the Council of the Union within the framework of its objectives. 6. Organization structure of Union of Arab Stock Exchanges: a. Council : The Union Council consist of all members of the federation and has the highest authority in the Union of Arab stock Exchanges which is responsible for determining public policy in the framework of the objectives of the foundations for it. b. Secretariat: Secretariat is the executive organization of the Union, headed by Secretary-General, who has the financial and administrative powers to establish by the implementation of tasks related to the functioning of the Union. 7. Members of the Union of Arab Stock Exchanges: a. Stock Exchanges  Saudi Stock Exchange ( Tadawul )  Kuwait Stock Exchange  The Egyptian Exchange  Casablanca Stock Exchange  Bahrain Stock Exchange  Beirut Stock Exchange  Doha Securities Market  Tunis stock Exchange  Dubai Financial Market  Amman Stock Exchange  Abu Dhabi Securities Exchange  Muscat Securities Market  Libyan Stock Market  Iraq Stock Exchange  Palestinian Securities Exchange b. Regulator  Capital Market Authority – Egypt c. Central Clearing Companies  Kuwait Clearing Company  Misr For Clearing, Settlement and Central Depository (MCSD)  Custodian And Clearing Center Of Financial Instruments For Lebanon And Middle East (MIDCLEAR)  Securities Depository Center – Jordan  Tunisian Central Depository d. In addition to 25 affiliated members World Federation of Exchanges Inter-exchange federation affairs April 2009 20 8. The General Secretary of the Union is Dr. Fadi Khalaf. Dr. Khalaf was elected by majority votes on January 8, 2009. He presided over the Beirut stock exchange since 1999, during which he adopted a system of continued trading by following a modern international computerized system for trading, remote trading and online trading. Dr. Khalaf was able to continue the activities of Beirut Stock Exchange during war in Lebanon. 9. The president of the council is the chairman of the stock exchange that hosts the final annual council meeting, and he is appointed until the next annual council meeting. 10. Tasks to be Accomplished During 2009: a. b. c. d. e. Launching of Static Website Preparing a Dynamic Website Quarterly Report for the members of the union Database Newsletters and Magazines 11. Activities Schedule of 2009 : Meeting Secretary General meets brokerage firms from UAE, Qatar and Egypt President and Secretary General meet the President of ASEA to discuss a protocol of cooperation IT Managers Meeting Training Session for Brokerage companies Annual Conference 2009 Date 1st two weeks of October Place UAE, Qatar, Egypt 1st two weeks of October Egypt 19-21 October 1st week of November 7-8 December Lebanon Lebanon Egypt World Federation of Exchanges Inter-exchange federation affairs April 2009 21 World Federation of Exchanges Chairman : Secretary General : Website : Contact : Mr. William Brodsky, Chairman & CEO, CBOE Mr. Thomas Krantz www.world-exchanges.org secretariat@world-exchanges.org The purpose of the Federation is to contribute to the development, support and promotion of organized and regulated securities and derivatives markets, in order to meet the needs of the world's capital markets in the best interest of their users. The goals are :   To demonstrate the role, functioning and integrity of regulated markets; To maintain a platform for securities markets professionals to discuss issues of common interest, to identify new approaches and solutions which enhance the competitive position of regulated markets, and to develop programs which support stock exchange operations, including research papers, workshops, benchmarking, and best practices; To establish harmonized standards for business processes in trading securities and derivatives, including cross-border; To deepen the cooperative relationship with supervisory authorities in order to advocate the benefits of stock exchange front-line self-regulation within the total regulatory framework; and To support emerging exchanges in their efforts to develop markets which function according to WFE member standards, thus contributing to global respect for the business practices of a wellrun industry.    The WFE is a central reference point for the securities industry, and for exchanges themselves. We offer member guidance in their business strategies, and in the improvement and harmonization of their management practices. To meet the goals of the WFE mission, we focus on the following areas:      We post over 10 years of market statistics, and business news in our monthly newsletter, Focus. Our Annual Reports and notes from public meetings are available online. We report business management surveys, and thematic studies. We hold public meetings (topical workshops, conferences…) and run private committees (to transfer know-how and share expertise) We sponsor research (such as Securities Lending Report...) We provide professional relations with various expert bodies We promote standards for generally accepted principles of securities business conduct (e.g corporate governance ) World Federation of Exchanges Inter-exchange federation affairs April 2009 22 WFE Topics for study/task forces  2008 Cost & Revenue Survey  Market statistics  Regulation  Communications Task Force Market policy : - Short-selling - Circuit-breakers - Fragmentation - OTC Clearing  Statistics Advisory Group  Website upgrades and addition of news feeds Remarks Being reviewed Half year statistics being prepared, new look of stats database is launched Committee meets in October after the CRO Conference in NewYork Matrix for communication and guidelines for news items being prepared.  “Focus” changes in content and presentation  IOMA new statistics definitions being discussed “News&Views” section launched. News from exchange industry are available on the website. Articles from industry professionals on industry issues being commissioned in Focus 2008 IOMA survey and trend since 1998 are published on the website     WFE events 2009 WFE - FIAB Developing Markets Forum CRO Conference & WFE Regulation Committee Meeting WFE General Assembly and Annual Meeting MIT Exchange Technology Workshop Dates September 2009 October 2009 October 2009 November 2009 World Federation of Exchanges – calendar other events 2009 Month September 2009 Meeting Joint WFE Developing Markets Forum – FIAB Annual meeting CCP 12 Meeting FEAS 15th General Assembly World Financial Information Conference WFE Board of Directors WFE Working Committee Meeting WFE General Assembly and Annual Meeting CRO Conference and Details Contact the Secretariat Date from 7 September 18 September Date to 9 September 18 September 26 September 7 October 5 October 5 October 7 October 16 October Place Hosted by Lima Stock Exchange Hong Kong Podgorica / Budva Athens Hosted by TMX Group Hosted by TMX Group Hosted by TMX Group Hosted by www.feas.org www.siia.net Contact the Secretariat Contact the Secretariat Contact the Secretariat Contact the Secretariat 24 September 4 October 5 October 5 October 6 October 14 October October 2009 World Federation of Exchanges Inter-exchange federation affairs April 2009 23 WFE Regulation Committee Meeting ISG Meeting November 2009 UNPRI Sustainable Stock Exchanges Event MIT Exchange Technology Workshop December 2009 FESE Convention ASEA 13th Annual Conference Union of Arab Stock Exchanges Annual Conference www.isgportal.net http://www.unpri.org/sustai nablestockexchanges09/in dex.php Contact the Secretariat www.fese.eu www.africansea.org www.arabstockexchanges. org 28 October 2 November 23 November 1 December 2 December 7 December 30 October 2 November 25 November 2 December 4 December 8 December FINRA and NYSE Regulation Tokyo New York Hosted by MIT Brussels Abuja, Nigeria Cairo World Federation of Exchanges Inter-exchange federation affairs April 2009 24