History reference of the Stock Exchange of Moldova

In December 1994, the Stock Exchange of Moldova (SEM), a close company, was established under the Law on securities circulation and stock exchanges. 34 promoters - the securities market professional participants took part in its establishing. First transactions were held on June 26, 1995, accepted as the birthday of the Stock Exchange of Moldova.

The legal and organizational base, contributing to complex processes on the capital market, was created with the Stock Exchange's opening.

Owing to the USA's support (the assistance was rendered by means of the USAID Agency), the Stock Exchange is equipped with the advanced technology for stock auctions.

In opinion of international experts (in the 1998-year) of the European Bank for Development and Reconstruction, the Stock Exchange of Moldova is a fast developing, progressive organization, prominent among new stock exchanges of Eastern Europe, with the minimal risk level. Since May 1995, it is an active member of the European-Asian Stock Exchange Federation, established in 1995 on the initiative of the Stock Exchange of Istanbul.

At the initial stage of the SEM's development, the authorized capital adequacy standards were set for the Stock Exchange. Initially, the authorized capital totaled 238000 lei, in 1998 it made 392 thousand lei and at present it amount to 500 thousand lei. The equity capital adequacy norms, i.e. 650000 lei, including guaranty fund adequacy norms, i.e. 30 % of the authorized capital, which were set by the legislation, are observed at present.

La etapa initiala de dezvoltare pentru Bursa de Valori au fost stabilite cerinte privind marimea capitalului social. La momentul fondarii capitalul social al Burei constituia 238 000 lei, in 1998 era de 392 000 lei si in prezent acesta este de 500 000 lei. Normativele suficientei capitalului social de 650000 lei inclusiv a fondului de garantie de 30 la suta din capitalul social stabilite de legislatie in prezent sunt respectate.

The introduction of the stock exchange index proved to be a positive moment in the development of the Moldovan capital market, and in particular of the SEM itself. At the beginning of 2002, the National Commission introduced the CNVM-32 index into circulation, the official publication of which was launched since the summer of 2000. The index is calculated every week following the SEM's trade session Friday (or Monday). The most world-known index "Dow Jones" serves as a basis for the CNVM-32 calculation. "Dow Jones" index is calculated in the regime of the real time using the results of the New York Stock Exchange auctions.

The structure of the CNVM-32 portfolio almost reflects the structure of the GDP(PIB) of Moldova: 57.55% of enterprises, included in the index, belong to the food and drink production; 19.42% - to the light industry; 15.85% - to the heavy industry; 7.18% - to the service industries.

The stock exchange index is necessary for experts to be more aware of the economy development, to follow the dynamic of its development. Investors - national and foreign - watch over their investment safety using the index.

Specialists consider the index to be not quite classic, as the Moldovan economy almost does not work. However, it shows a certain tendency(tendinta) on the stock market. The Moldovan Stock Exchange activity is too low for the index to really be a guiding line for financial planning, speculation and other activities.

The Structure of the Stock Exchange of Moldova

The supreme ruling body of the Exchange is the General Assembly of its Members(Adunarea generala a membrilor). The united, well-organized and efficient management of the Exchange is performed by the Exchange Board in the periods between the Members' Assemblies. The Exchange Board consists of 18 persons, elected for a year. Since 1997 to the present time, the SEM's director is Dodu Cornelii. The Exchange Stock's activity is directly carried on by the Exchange's Departments, performing the clearly fixed functions on the basis of their own Regulations on organization, functioning, adopted by the Exchange's President. At present, the following departments and subdivisions function at the SEM:

1. Marketing, Listing and Quotation Department(Cotare). It is engaged in registering securities at the Exchange, in examining and including securities in the Exchange listing. In the monthly bulletin "Bursa de Valori a Moldovei" (the Stock Exchange of Moldova), the Department publishes information on securities admitted to circulation at the Stock Exchange, presents statistics and auction analysis, as well as other information. All information regarding information on exchange transaction statistics is the property of the SEM.

2. Clearing and Billing Department(Decontari). Clearing refers to the complex of actions made by the Department as to collect, check, correct and confirm the information on transactions for settlement, on document preparation to effect transactions, as well as information regarding off-set of mutual liabilities of the Stock Exchange's Members.

3. Market Supervision Department(supravegherea pietei) - performs the following functions:

- observance of the normality and requirements of the legislation in the Stock Exchange's activity;