Annual Convention of the International Federation of Stock Exchanges
During the convention, the participants discussed important issues regarding the position and the role of the Stock Exchanges, which is significant and ever increasing.
More specifically, while in the year 1990 its total capitalization amounted to $ 9,400 billion and the value of trading to $ 6,211 billion, in the year 2000 the respective figures were $ 36,286 billion and $ 55,957 billion. The role of the Stock Exchanges in the economic development has significantly increased and they are a major factor in the financing of the global economy. For this reason, the member of the FIBV agreed to draft the White Book of the Stock Exchanges, which will give emphasis to the new role of the Stock Exchanges, will present the stock market sector and will promote their own developmental and other issues.
In addition, the members agreed to the change of the name of the federation from FIBV to WFE (World Federation of Exchanges), while in the current period, the merger of FIBV with the International Associations of Derivatives Exchanges (IOMA) is under development.
Other important issues that were discussed during the convention were the developments in the role of the Central Counter Contracting Party regarding the clearing of trading and risk management, the recent developments in the Stock Exchanges, the upcoming changes in the new millennium, the stock market tools regarding over the counter trading and their effect on the organized · supervised markets of securities and derivatives, as well as the challenges for the administration for the Stock Exchanges in the new market environment.
It was also noted that the expected market conditions in the year 2002 differentiate the conditions of cooperation of the Exchanges and add to new strategies and it is unlikely to accelerate the mergers and cooperation of the Exchanges.
In the year 2002, the Exchanges are also expected to give an approximately equal emphasis both on their external development and the improvement of their internal operation. However, it was emphasized that 80% of the Stock Exchanges examined the prospect of cooperation with other Stock Exchanges. Also in the year 2001, 63% of the Stock Exchanges proceeded to the extension of their hours of trading.
Approximately 33% of the Stock Exchanges are listed, while others will proceed to the same direction as well.
As regards the current issue of the admission of prospectuses regarding the listing of companies on the Stock Exchanges, 80% of the Stock Exchanges consider that the companies must be listed through the Stock Exchanges. The issues of market supervision and realization of the regulatory framework must be the object of the Capital Market Commission.
The number of the Exchanges that extend to derivatives (87%) increases continuously, while the introduction of Futures to individual shares is widely considered to increase the liquidity of the market of securities. The electronic operation of the Exchanges and the other agencies of the market is expected to be further intensified.
The listing of companies is not expected to increase in the year 2002, as the daily turnover in the year 2001 is at 50% of the levels of the year 2000. Also, each Exchange is expected to strengthen the services it provides to the listed companies. Finally, great emphasis is given to the corporate governance of the listing companies.
The European Exchanges also requested better access of the American investors to the European markets through the installation of electronic terminals of European Exchanges in the USA.
There was a particular reference and discussion on the emergency procedures of the Exchanges and the experience from the attack at the World Trade Center. The participants discussed which issues were handled well, what could be done differently and how the news was disseminated throughout the world.
Great emphasis should be given to the speed of communication with the major agencies of the market, their technical support the capability of consultation, as was in the case with the European Exchanges, as well as to the fact that the markets should always operate, when no technical problems exist.
The next convention of FIBV/WFE will be held in Amsterdam in October of 2002.
In the frame of the convention, the administration of the Athens Stock Exchange had a meeting and contacts with other Exchanges, such as the Exchanges of Milan, Madrid, London and Euronext, as well as with the Stock Exchanges of Istanbul, Tel Aviv and Lubliana. The Athens Stock Exchange is making contacts with the above Stock Exchanges in order to promote partnerships.
As regards the region of Southern Eastern Europe, it has established a work group with the Stock Exchange of Istanbul regarding the link of the two markets in the next year, while the establishment of a regional stock market Index is being discussed with the Stock Exchanges of Cyprus and Tel Aviv.
The Athens Stock Exchange is discussing prospects of cooperation with the stock exchanges of the European Union. The impression is that the stock market scene has not cleared yet and announcements regarding new initiatives · announcements, which the Athens Stock Exchange is monitoring, are expected.
In particular, the Athens Stock Exchange had contacts with Euronext, which recently announced its new strategy, by promoting, apart from the mergers, cross membership and technological cooperation.
The Athens Stock Exchange had a contact with the London Stock Exchange and a meeting between the administrations of the two Stock Exchanges is expected in Athens. At the same time, the Athens Stock Exchange is promoting its networking with markets of the European Union and in this frame, it cooperates with the Madrid Stock Exchange and the company GL Trade regarding the adoption of the relevant Visual Trade System. Finally, as regards the issue of the establishment of Central Counter Contracting Party the Athens Stock Exchange held discussions with the Milan and Sweden (OM) Stock Exchanges.