Belarusian SE Future Outlook 2008

The BCSE will continue the development of its main segments such as futures, stock and currency market.

The BCSE tasks can be summarized as follows:

­         to raise competitive capacity, quality and quantity of services rendered by the BCSE;

­         to increase the efficiency of exchange currency, stock and futures market functioning;

­         to contribute to the effective settlement and clearing system formation, that service main segments of the organized financial market;

­         to provide Belarusian financial market with information transparency;

­         to assist in realization of state investment programs and other projects aimed at  financial markets developing;

­         to promote integration processes between Russian and Belarusian financial systems;

­         to create program and technical infrastructure for electronic documents circulation in the  organized market;

­         to develop own program and technical base, to implement modern computer technologies.

TRENDS OF DEVELOPMENT

IT infrastructure development

The whole hardware complex update will allow to increase the safety of the soft and hardware functioning both in normal and force majeure situations and to create the background for promoting the processing, the introduction and the replication of new technologies.

Stock market

The service function expansion of trade securities system and its network capacity increase;

Improving the listing procedure and updating the software servicing these processes;

Providing favourable conditions for the state-owned share holdings sale;

Approval and the soft and hardware launching works on realization of new common rules on conducting the securities transactions in the BCSE providing for new kinds of deposit free REPO transactions with the possibility of liability delay upon the first part of the transaction, technological development of assignment of a claim and assignment upon the exchange transactions, etc.;

Development mechanisms of government securities primary distributions held by the Ministry of Finance with the possibility of organization of simple auctions providing a partial funds reservation;

Improving the auction trade methods aimed at conducting a wider range of operations by the National Bank in the secondary securities market including sale of redemption offer bonds, REPO operations and traditional purchase and sale transactions;

The organization of circulation and distribution of new instruments at the BCSE  – banking bonds backed by the repayment of the capital debt amount and by the payment of interest on credits for construction, reconstruction or accommodation purchase on the security of the real estate;

Carrying out works on organization of workflow based on cryptographic information protection means and the use of electronic digital signature.

Currency market

Improving the existing fixing trade mode aimed at creating favourable conditions for banks and realization of the rate policy of the National Bank;

Joint work together with the National Bank on improving the legal base regulating the trading rules that stipulate for additional trade and settlement modes;

Soft and hardware realization of new rules on conducting the exchange operations in foreign currency stipulating for additional trade and settlement modes;

Revision of own legal base regulating mechanisms of conducting and execution of transactions in foreign currency.

Futures market

Further works on extending the range of circulated financial instruments in the futures market;

Methodological background for launching delivery futures, futures on world currencies cross-rates, interest rates and government securities market indexes, different options classes including futures options – variation options;

Joint work with interested authorities on improving the legal base regulating rules on conducting operations in the futures market;

Development of new approaches to formation of the guarantee system aimed at lowering the price for transactions settlement;

Improvement of trade mechanisms for the futures market instruments contributing to the soft- and hardware complex upgrade.

Informational activity

Raising the level of information automation of the exchange activity resulting in appearance of new analytical products and services;

Development of mechanisms of virtual consultations concerning the activity of the organized stock market functioning on the base of Internet sites;

General works on updating the existing Internet systems soft- and hardware base, their database structure optimization for safety, security and speed increase purposes, and introduction of technologies corresponding to modern standards;

Extending the range of analytical services based on the development of the indices system reflecting the stock market processes that enables to analyze its separate elements and to estimate its development.

New markets

Together with the development of the existing range of services, such new segment of the organized market as the credit resources market- moneymarket is to be formed in 2007 starting with the development of the necessary local normative base.

In future this segment can become the background for the development in the republic of the short-term distribution mechanisms for temporary free floats and for the attraction of the necessary funds on the competitive basis by the organization of deposit and credit auctions.

The organized moneymarket formation on the stock technologies base will allow to increase the interbank credit market capabilities concerning the acceleration and the simplification of distributions procedures between banks with surplus and deficient resources.

Besides, the moneymarket integrated into the exchange technology will promote the development of new risk management mechanisms in the whole organized financial market ensuring the liquidity support for clearing participants by means of the crediting introduction.

The realization of all above mentioned projects and plans will allow the BCSE to achieve a new level of the services rendering, to keep high development levels and to contribute to the creation of an open high-performance infrastructure of the national financial market.