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-0,92%17.11.2009.Conclusions of the VIII Belgrade Stock Exchange International Conference
VIII Belgrade Stock Exchange International Conference, UPGRADE IN BELGRADE, held on 19th and 20th November 2009 at the Hotel Continental, was attended by over 200 domestic and foreign experts from the field of exchange and broker operations, fund managers, bankers, analysts, university professors and other specialists.
The work was organized in five panels with eminent speakers from the respective areas.
During the Conference the following conclusions were adopted:
• The analysis of credit price resistance to changes in the central bank key interest rates indicates low short-term interest rates for corporations and high interest rates for most small and medium-sized companies and retail credits in the years to come. At the same time, there is a risk of higher long-term interest rates on international markets, which will affect the credit risk of Serbia, induced by the currency risk.
• Relations between corporations and investors have changed over the past few years. By changing perception and accepting „closer“ relations with investors, as a tool for methodological gathering of corporate data and management of internal processes, a company can have internal benefits, like harmonization with legal and self-regulatory requirements, which can bring external benefits for investors, but also for all interest groups.
• From the point of view of investors, personal contacts with issuers are essential, particularly at investor conferences. Coporate web-site has become one of the most important source of information as it enables a quick and reliable flow of information, easy information management and information integration.
• Technology is essential in the survaillance of market manipulation and abuse. Smart use of new technologies is of utmost importance for efficient market suvaillance and enforcement of sanctions, however it must be accompanied with adequate analysis.
• Typical ways of manipulation in developing markets include fraudulent techniques like creating a false image of a company and changing the price. In order to defend the market from manipulations the following is important: detection of real players, reporting to exchange, efficiency of local legislation, quality of securities admitted to the exchange and cooperation with the regulator.
• The „compliance“ function facilitates the regulation of financial institutions, as it enables the harmonization of bank operations with the law, rules of business and ethical standards in relation to clients, providing their protection and preserving market integration.
• The regional power exchange has a number of advantages for domestic participants, among others, better use of cross-border transmission capacities and at the same time is important for Serbia considering its good geographical position. Certain preconditions are necessary in order to establish an efficient regional market and become the integral part of the European electricity trading: bilateral contracts, market operator, national power exchanges enabling regional management and national control through linked auctions.
• Liquidity improvement techniques, from the point of view of developed markets, indicate the importance of market makers and specialists, as well as company presentations. In SEE the issue of liquidity involves reduction in the amount of shares, or increase in shares on the „prime“ market, remote access to established trading systems and exchanges as well as stronger criteria for minimum „free float“, improvement of regulatory framework in line with Western European standards and EU directives, increase in transparency, etc.
• The concept of the added value of structured products, their profitability and the source of income, can be one of the ways to use the potential of the industry of derivative instruments. The ultimate objective is to locally create market instruments with underlyings and/or assets from regional and developed markets.
• The project „Scorecard“ is part of the continuous cooperation between the Belgrade Stock Exchange and International Financial Corporation (IFC) within the Corporate Governance Program realized by this corporation in SEE countries. The „scorecard“ represents a means enabling the companies to monitor and evaluate the level of compliance of the established practice with the principle of corporate governance „best practice“, and detect possible weaknesses, as well as measures and activities necessary for their overcoming.
• The project entitled „Cap&trade”, presented as a special lecture, emphasises the importance of a joint struggle of capitalists and environmentalists against climate changes. Timely changes in behaviour and reducions in CO2 emissions result in increased competition, while emission trading connects buyers and sellers in a mechanism enabling price determination, transparency and liquidity, active risk management and, consequently, credit reduction. An area which was until recently marginal has come into the main flows of interests in Europe and has created a pattern that should be followed by the rest of the world.
In Belgrade, 20th November 2009
The work was organized in five panels with eminent speakers from the respective areas.
During the Conference the following conclusions were adopted:
• The analysis of credit price resistance to changes in the central bank key interest rates indicates low short-term interest rates for corporations and high interest rates for most small and medium-sized companies and retail credits in the years to come. At the same time, there is a risk of higher long-term interest rates on international markets, which will affect the credit risk of Serbia, induced by the currency risk.
• Relations between corporations and investors have changed over the past few years. By changing perception and accepting „closer“ relations with investors, as a tool for methodological gathering of corporate data and management of internal processes, a company can have internal benefits, like harmonization with legal and self-regulatory requirements, which can bring external benefits for investors, but also for all interest groups.
• From the point of view of investors, personal contacts with issuers are essential, particularly at investor conferences. Coporate web-site has become one of the most important source of information as it enables a quick and reliable flow of information, easy information management and information integration.
• Technology is essential in the survaillance of market manipulation and abuse. Smart use of new technologies is of utmost importance for efficient market suvaillance and enforcement of sanctions, however it must be accompanied with adequate analysis.
• Typical ways of manipulation in developing markets include fraudulent techniques like creating a false image of a company and changing the price. In order to defend the market from manipulations the following is important: detection of real players, reporting to exchange, efficiency of local legislation, quality of securities admitted to the exchange and cooperation with the regulator.
• The „compliance“ function facilitates the regulation of financial institutions, as it enables the harmonization of bank operations with the law, rules of business and ethical standards in relation to clients, providing their protection and preserving market integration.
• The regional power exchange has a number of advantages for domestic participants, among others, better use of cross-border transmission capacities and at the same time is important for Serbia considering its good geographical position. Certain preconditions are necessary in order to establish an efficient regional market and become the integral part of the European electricity trading: bilateral contracts, market operator, national power exchanges enabling regional management and national control through linked auctions.
• Liquidity improvement techniques, from the point of view of developed markets, indicate the importance of market makers and specialists, as well as company presentations. In SEE the issue of liquidity involves reduction in the amount of shares, or increase in shares on the „prime“ market, remote access to established trading systems and exchanges as well as stronger criteria for minimum „free float“, improvement of regulatory framework in line with Western European standards and EU directives, increase in transparency, etc.
• The concept of the added value of structured products, their profitability and the source of income, can be one of the ways to use the potential of the industry of derivative instruments. The ultimate objective is to locally create market instruments with underlyings and/or assets from regional and developed markets.
• The project „Scorecard“ is part of the continuous cooperation between the Belgrade Stock Exchange and International Financial Corporation (IFC) within the Corporate Governance Program realized by this corporation in SEE countries. The „scorecard“ represents a means enabling the companies to monitor and evaluate the level of compliance of the established practice with the principle of corporate governance „best practice“, and detect possible weaknesses, as well as measures and activities necessary for their overcoming.
• The project entitled „Cap&trade”, presented as a special lecture, emphasises the importance of a joint struggle of capitalists and environmentalists against climate changes. Timely changes in behaviour and reducions in CO2 emissions result in increased competition, while emission trading connects buyers and sellers in a mechanism enabling price determination, transparency and liquidity, active risk management and, consequently, credit reduction. An area which was until recently marginal has come into the main flows of interests in Europe and has created a pattern that should be followed by the rest of the world.
In Belgrade, 20th November 2009
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