MARINA JANKOVIC
JOHN CABOT UNIVERSITY
BELGRADE STOCK EXCHANGE
TABLE OF CONTENT
Belex
Market Making
Economy of Serbia
Belgrade Stock Exchange- Belex
Overview
Belgrade Stock Exchange is a joint stock company
with the rights, obligations and responsibilities
stipulated by Law on Capital Market (Official
Gazette No. 31/11).
Belgrade Stock Exchange performs activities of the
market operator in accordance with the Law on
Capital Market and manages or carries on business
in connection with the operation of regulated
markets and multilateral trading facility (MTP).
Stock Exchange may also perform services related
to the promotion and improvement of the capital
market development, sales and licensing of the
market data, investor education, and other
activities related to the tasks that are in relation to
the regulated market or MTP. Stock exchange
activities are more closely regulated by Exchange
Articles of Association.
Stock Exchange can not trade with financial
instruments, and can only invest in financial
instruments issued by the Republic of Serbia, the
National Bank of Serbia, local governments, or by
the relevant institutions. Stock Exchange, nor any
of the members of its organs, the Director of the
Exchange or the Exchange staff must not give
advice on buying and selling financial instruments
or choice of an investment company.
Shareholders
In accordance with the Law on Capital Market,
Exchange shareholders may be domestic and
foreign entities, with an obligation of respecting
specific rules on obtaining or reduction of qualified
participation in the Exchange's capital. The Law in
this regard prescribed obligation to obtain the prior
approval of the Securities Exchange for the
acquisition of shares in which the percentage of
voting shares or equity reaches or exceeds 10%,
20%, 33% or 50%. This obligation applies to
individuals and legal entities, and closely related
persons, with the exception of the Republic of
Serbia. Also, the Law stipulates that a natural or
legal person who makes a decision that directly or
indirectly reduce the percentage of qualified
participation in the Exchange's capital below 10%,
20%, 33% or 50% of the total capital, is obliged to
inform the Commission with a prior notice and state
the amount of the intended reduction in
participation.
Shareholdeing structure of the Belgrade Stock
Exchange consists, in addition to the Republic of
Serbia, of investment companies, banks, insurance
companies, other legal entities and individuals.
The share capital of the Exchange consists of 4,160
ordinary shares with voting rights.
Belgrade Stock Exchange is organized as a joint
stock company that doesn't have the status of a
public company, and shares of the Belgrade Stock
Exchange can be transacted, respecting pre-emptive
rights of shareholders of the Exchange. Exchange
Articles of Association shall regulate the procedure
for the secondary transacions of the Exchange
shares, according to the aforementioned restriction
Market Making
Who do we work with
The activities of a market maker are
regulated by the Belgrade Stock
Exchange rules.
A MARKET MAKER may be any member
of the Belgrade Stock Exchange who
fulfilled
the
legally
prescribed
requirements and who concluded a
contract on market making with the
Exchange obliging him to continuously
and for his own account place buy and
sell orders for particular securities, under
the contract terms and in compliance
with the Exchange Rules of Business
Operation.
One security may simultaneously have
several market makers.
A market maker on financial markets is
commonly called a specialist or a liquidity
provider. By simultaneous and continuous
placement of buy and sell orders, and in
line with the liquidity level of the given
security, market makers increase the
turnover, liquidity of the security and
market depth and reduce the price range
for particular securities.
A market maker makes profit through the
difference between buy and sell price, i.e.
spread. The members of the Belgrade
Stock Exchange who choose to perform
market making operations pay a
discounted fee to the Exchange for
transactions carried out in the capacity of
a market maker, and there are also some
forms of market maker protection aimed
at preventing too many trade executions
(20% of average daily turnover in
previous six months). In such situations,
a market maker may withdraw from the
market without fulfilling the required time
period within one trading session.
Member
Activity
1.
ABC broker a.d.,
Beograd
Broker
2.
Alpha bank Srbija a.d. ,
Beograd
BrokerDealer
3.
Athena Capital a.d. ,
Beograd
BrokerDealer
4.
Banca Intesa a.d. ,
Beograd
BrokerDealer
5.
Banka Poštanska
štedionica a.d. , Beograd
BrokerDealer
6.
Belgrade Independent
broker a.d. , Beograd
BrokerDealer
7. Capital broker a.d., Niš
BrokerDealer
Citadel securities a.d. ,
Beograd
BrokerDealer
9. Convest a.d. , Novi Sad
Broker
8.
10.
Čačanska banka a.d. ,
Čačak
BrokerDealer
11.
Delta broker a.d. ,
Beograd
BrokerDealer
12. Dil broker a.d. , Beograd
BrokerDealer
13.
Dunav Stockbroker a.d. ,
Beograd
BrokerDealer
14.
Energo broker a.d. ,
Beograd
BrokerDealer
15.
Erste bank a.d., Novi
Sad
BrokerDealer
16.
Euro fineks broker a.d. ,
Beograd
Broker
17. Eurobank a.d., Beograd
BrokerDealer
18.
Fimaks broker a.d. ,
Beograd
Broker
19.
Galenika broker a.d. ,
Beograd
BrokerDealer
20.
Ilirika investments a.d. ,
Beograd
Broker
21.
InterCapital Securities
a.d. , Beograd
BrokerDealer
22.
Intercity broker a.d. ,
Beograd
BrokerDealer
23.
Invest broker a.d. ,
Beograd
BrokerDealer
24.
Jorgić broker a.d. ,
Beograd
BrokerDealer
Market
Maker
TIGR
TIGR
FIXAPI
ECONOMY OF SERBIA
Serbia's economy is based mostly on various services (63.8% of GDP), industry (23.5% of GDP), and agriculture (12.7% of
GDP). In the late 1980s, at the beginning of the process of economic transition from a planned economy to a market economy,
Serbia's economy had a favorable position, but it was gravely impacted by economic sanctions from 1992–1995, as well as
excessive damage to infrastructure and industry during the 1999 NATO bombing.
After the ousting of former Yugoslav President Slobodan Milošević in October 2000, the country went through an economic
liberalization process, and experienced fast economic growth. GDP per capita (nominal) went from $1,160 in 2000 to $6,485 in
2008. Furthermore, it has been made a candidate for the European Union in March 2012. The European Union is Serbia's most
important trading partner. Estimated GDP (nominal) of Serbia for 2013 is $53.1 billion, which is $7,136 per capita. Estimated
GDP (PPP) of Serbia for 2013 is Intl. $96.8 billion, which is Intl. $13,004 per capita. In 2011 the economy grew at 3.7% (Q1
2011) 2.5% (Q2 2011) 0.5% (Q3 2011) 0.8% (Q4 2011),resulting in nearly 2% GDP growth for 2011. Serbia entered a second
recession in 2012, causing GDP to decline 1.6% for that year. However, during the first quarter of 2013 growth in industrial
production and exports resulted in a 2.0% increase in GDP. At present, main economic problems are high unemployment rate
(22.4%, November 2012) and a large trade deficit ($7.2 billion, 2009).
Trading Methods
Block trading
Fluctuation zone
Single price method
Continuous trading method