Annual Report 2004 - Georgian Stock Exchange

Statement
George Loladze
Chairman of the Supervisory Board
Georgian Stock Exchange
Merab Memarnishvili
Chairman of the Supervisory Board
Georgian Central Securities Depository
The year 2004 can justly be regarded as a turning
point for the Georgian Stock Exchange (GSE) and
the Georgian Central Securities Depository (GCSD),
attested by an unprecedented growth of basic business
indicators over previous years.
The high standards of trading, clearing and settlement
systems of the GSE and GCSD, along with the
application of best international practices, secured
high image of GSE at the international level as well.
A clear example of this is the Memorandum of
Cooperation between the Thessaloniki Stock
Exchange Center and the GSE for the harmonization
of trading platforms, as well as, the clearing and settlement
systems. Cooperation between the two
stock exchanges will definitely facilitate the further
development of the securities market in Georgia.
Resumed privatization process uncovers new
prospects for Georgian securities market. Holding of
privatization auctions at GSE is backed not only by
the adequate legislative and technological bases,
but also by the experience accumulated in conducting
such auctions in the previous years. It is our
strong belief that making stock exchange privatization
auctions permanent, will substantially contribute
to the development of the capital market and
improvement of investment climate in the country.
Since the success of our institutions depends strongly
on an appropriate and effective functioning of jointstock
companies, the further improvement of corporate
governance in Georgia is among our principal
interests. Corporate Governance training program
organized by GSE leadership is ongoing. For its participants
the Corporate Governance manual is developed
by lead specialists from the National Securities
Commission, GSE, GCSD and other capital market
institutions. Also, with the active involvement of GSE,
professional association of Georgia's corporate
directors has been founded recently; whose important
task will be to facilitate the creation of the
Corporate Governance Code of Georgia.
In 2005, it is planned to enrich our website, where in
addition to regularly posted data on GSE trades, the
regular reports of traded companies will be posted.
Comprehensively indexed database of companies,
as well as a flexible system for producing online
Annual, Semi-Annual and Current reports will be created.
This will significantly simplify the information
search and posting tasks. The above is an essential
step in increasing the transparency of the Georgian
securities market.
To stimulate the trading in government securities and
to increase the stock exchange liquidity it is planned
to introduce the trading platform for transactions
partially secured with cash. Also, to make trading
more intensive, trading sessions are planned to be
held on a daily basis, and during a trading day the
second trading session will be added.
It is our deep belief that the principles of openness
and transparency, on which the management and
further development of the GSE and GCSD are
based, are a sound precondition for our inevitable
success. Notwithstanding the numerous problems
faced by Georgian economy, GSE and GCSD will
continue mastering different directions of the capital
market and cooperating with all present and potential
partners working on the improvement of the
investment climate in Georgia.
Finally, we would like to extend our gratitude to the
GSE and GCSD members, partners and employees
who never spare their efforts for building the sound
and efficient securities market in Georgia.
ANNUAL REPORT 2004
2 Georgian Stock Exchange JSC
Georgian Central Securities Depository JSC