Iraq Stock Exchange ISX
2013
Taha A. AL-Rubaye
CEO Iraq stock exchange
Taha.ceo@isx-iq.net
Iraq stock exchange (ISX) was founded under the law No. ( 74 ) April 18, 2004, opened in June 24, 2004 .
ISX not-profit, member-owned and self-regulatory organization (SRO).
ISX aims
A. Operate and regulate its members, and list companies in a manner that is consistent with the goal of protecting
investors and promoting investor confidence in the market.
B. Promote the interests of investors in efficient, reliable, competitive, transparent and honest markets.
C. Organize and facilitate fair, efficient and orderly transactions in securities, including the clearance and settlement of
such transactions.
D. Regulate its members’ dealings in securities-related services and transactions and define the rights and obligations of
parties concerned and the means to protect their legal interests.
E. Assist in capital-raising for companies which either are listed, or which desire to list on the Exchange.
F. Engage, as appropriate, in investor education programs to educate potential investors about opportunities for
investments at the Exchange.
G. Collect, analyze and publish statistics and information necessary to achieve the goals stipulated in this Law.
H. Establish and support contacts with the stock exchanges of Arab and international markets that may be beneficial to
the development of the Exchange.
I. Undertake other services and activities necessary to support its objectives.
The ISX witnessed two periods of activity
1- Manual trading period, June 2004 - April 2009.
2 - Electronic trading period, April 2009 to current
ISX adopted manual trading since 2004 to trade the listed companies shares.
Since 2009 ISX use the electronic trading system and the depository system equipped by NASDAQ OMX
The number of trading sessions became five sessions per week since November 2009. The clearing and settlement
( DVP) T+0.
ISX 2013
The number of listed companies on the market ( 83 ) companies , ( 73) companies listed in the regular market according to
the instructions No. (6 ), and ( 10) companies listed on the second market in accordance with the instructions No. (15).
Indicators in 2013
1. Organize ( 231 ) trading session .
2. Trade ( 875.569 ) billion shares .
3. The value of shares traded ( 2,845 ) trillion dinars .
4. Execute ( 126 904 ) tickets .
5. The number of listed shares increased from ( 3,551 ) trillion shares in 2012 to ( 4,632 ) trillion shares during 2013 .
6. The market capitalization increased from ( 5,597 ) in 2012 trillion dinars to ( 11,476 ) trillion dinars in 2013 .
2012
2013
Change %
85
83
(2)
No. listed shares ( Trillion )
3,551
4,632
30
No. Traded shares ( Billion )
626
871
39
Value (Million US$)
745
2371
218
Market Cap ( Billion US$)
4.664
9.563
105
Index
125.02
113.15
(9.49)
No. listed comp
Non-Iraqis traded
Type of operation / years
2012
2013
Change
%
No. shares purchased (billion shares)
28,476
103,537
263
Value of shares purchased (Million US$)
37,540
961,590
2461
No. tickets executed
10658
16584
55
No. shares sold (billion shares)
36,086
40,563
12
Value of shares sold(Million US$)
46,737
141,389
202
6780
8000
18
No. tickets executed
ISX Index
ISX launch a new ( index ), ISX Price Index 37 in February 2013, adopted the exclusion of delist companies
and weak trading , which was in the previous sample, and the addition of a new company representing the
telecommunications sector. The value of the index in basis session was 100 points. The index closed at the
end of February (120) points and valued at the last session of the year ( 113.15) points . The index lose at the
end of the year (8%) .
The most important factors affecting the value of the ISX index in 2013
A. Increasing capital for the listed companies.
The number of shares which they are listed after increasing the capital for the listed companies in 2013 was (1085 )
billion new shares , compared with 905 billion shares in 2012.
According to the " inverse relationship between supply and the share price in the market" the prices gone down less than
the increasing percentage, some of the shares price got up when they success using the capital (Working Capital)
B. The activity for many investment portfolios for non-Iraqi reflected positively on the size of the liquidity in the market
and expand the depth and market value.
C. Met the standards and the requirements of the prevailing laws and instructions of the disclosure and compliance Notes
auditors and observations of the Securities Commission in the classification and disclosure of the number of accounts in
the annual data in the quarterly financial data .
On the other hand a number of companies failed to contribute to the legal obligation to disclose in the right time which
displayed the offense and suspended from trading on several occasions of the year after the expiry of the legal limit . So
usually influenced by the market index in the second half of the year due to the failure of some companies to meet
disclosure rules .
D. The economic and political developments of local , Arab and international resolutions affected to shareholders and
investors , Iraqis and non-Iraqis . Iraq is an important part of the political and security developments , especially in the
face of terrorism and fight crime .
E. Banks Shares acquired ratios of more than 70% of turnover and number of shares traded. However, small investors
have in the industrial mixed companies shares large proportions, they have been affected due to the feet and the means of
production, unskilled labor and flooding the market with goods from the neighboring countries.
Agreements 2013
Real time data : ISX signed two agreements in 2013, the first one with Bloomberg and the second with Reuters
to have ( Real Time Data) Services, which will be launched with the X-stream electronic system in June .
The third agreement with Iraq commercial satellite channel in IQT TV , December 2013 to broadcast services
and dissemination of information to the trading session and launch bar prices Real Time Data .
Trading system: ISX Signed agreement with NASDAQ OMX on 28/06/2013, To upgrade the trading system to
X-stream, which it will be launched in June 2014 .
 Listing
ISX have two types of list operations :
a. Listed new companies.
b. listed new shares for the listed companies (increase in the capital) .
 Depository center IDC
The Iraq Depository, a division of the ISX opened to participation by the members of the Exchange subject to such terms
and conditions as the Director of the Depository shall specify by rule, subject to the approval of the Board of Governors
and the Commission.
 The Depository aims
Promote the timely, safe and efficient settlement of securities transactions in accordance with the terms of those
transactions.
Promote open and non-discriminatory access to clearance and settlement services.
Iraqi Securities Commission in 2008 decided " the IDC a special section inside the market for a while to take the body a
decision to turn it into an independent entity , financially and administratively , to be open for the participation of any
member in the market , and is managed and operated according to the conditions specified by the IDC manager be subject
to the rules of the Board of Governors and the ISC . “
ISX plans 2014
1- Trading sessions
A - Organization ( 232 ) trading session at a rate of five sessions per week .
B - Monitor trades and transactions in accordance with the rules and instructions for electronic trading , insiders, disclosure.
2 - Reports
A - issuing ( 232 ) Bulletin report after trading sessions daily . And issuing weekly report and the issuance of (12) monthly report and bulletin.
B - the issuance of the annual report in the first month after the end of the year. And published in the media and Website
T - Issue Companies guide to corporate data as 31/12/2013 in order to enable investors to follow the financial position of the listed companies . And broadcast
on the website www.isx-iq.net addition to the publication of quarterly and annual data for listed companies to contribute and publish the decisions of public
bodies upon receipt .
3 – Listed shares
A - listing and trading of the new shares ( capital increase ) of listed companies after approval by the registrar of companies to amend the articles of
incorporation . According to the decisions of public bodies of listed companies .
B - follow non-listed companies to submit applications and documents included in accordance with the instructions, it is hoped to list number of banking
companies not included in collaboration with the Securities Commission and the Central Bank of Iraq .
C - Follow-up process of the transfer companies from the second market to the regular market when they match conditions for the transition .
4 - Surveillance & Inspection
a. Monitoring the determinants of trading and update Cap Formula on purchase orders for brokerage firms and not to
exceed cash balances in the bank clearing account and the balance of investors T +0 , which is being updated data before
and during the session , according to updates of deposit in a bank settlement . And control system users and data through
Data Officer. And the discovery of irregularities in accordance with the instructions of the electronic trading negligent
referral
and
follow-up
to
the
Commission
for
listening
and
discipline.
b. Control over the implementation of the instructions solvency of the brokerage firms and follow-up activities by the
Department of oversight and scrutiny balances monthly, quarterly and annual final accounts of these companies and the
implementation of the plans for monitoring the semi-annual all brokerage firms to check their documents , documents and
authorizations trading , which includes periodic inspection ( semi-annual ) the sudden inspection and investigation of cases
referred to the Commission for listening and follow-up referral to the disciplinary committee when there is evidence of the
violation.
5 - Electronic Systems
The electronic trading system X-Stream will be launched in the end of the first half of 2014. According to the plan of action
with NASDAQ OMX.
Depository IDC will developed after completion of design studies by NASDAQ OMX in accordance with the following
steps :
a - Establishing a separate CSD in accordance with law No. 74 of 2004.
b - The completion of the work of the new X-stream CSD according to the expertise available in the ISX .
c - enable Erbil stock exchange from exercising its activity in 2014 through the use of the current IDC (Equator) for a
temporary period until the start of the work of the new system, X-stream CSD.
Capital Market in Iraq 2014
Iraq Stock Exchange
Brokerage Firms
Workstations
Data Vendors
Trading
Depository
Clearing
Settlement
Bank
Settlement
Bank
Erbil Stock Exchange
Brokerage Firms
Workstations
Capital Market in Iraq 2015
Brokerage
Workstations
Iraq stock exchange
ISX
Data Vendors
Settlement
Bank
CSD
Clearing
Brokerage
Workstations
Erbil stock exchange
ESX
Settlement
Bank
For more information
www.isx-iq.net
Info-isx@isx-iq.net