Moldova Stock Exchange
In any developed economy, the function of the securities market indicator is performed by the Stock Exchange, appealing to perform functions of a well organized market thus ensuring the place where the supply and demand meet. The result is the best price for the Buyers and the Sellers. Its main purpose is to develop an organized stock market, to create an infrastructure and render services, ensuring conclusion of the civil-legal transactions between the market's participants, the transaction subject being the securities. All information about supply and demand on the securities is concentrated in it, what creates the most favorable conditions for the best rate of securities.
History reference of the Stock Exchange of Moldova In December 1994, the Stock Exchange of Moldova (MSE), a joint-stock company of closed type, 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. Since May 1995, it is an active member of the European-Asian Stock Exchange Federation (FEAS), established in 1995 on the initiative of the Stock Exchange of Istanbul. The objective of the Federation is: to develop the capital markets of the member-states, in particular to improve the organizational structure; to settle the problems concerning regulation and self-regulation of the mechanism for brokers and dealers; to organize an efficient monitoring; development of corporate governance principles, etc.
Since July 2008, MSE is a member of the International Association of the CIS Exchanges. The association was founded in Moscow in 2000, in order to coordinate the efforts in the development of the financial markets in each state according to the international standards.
At the initial stage of the MSE's development, were set the standards for the statutory capital for the Stock Exchange. Initially, the statutory capital was 238000 lei, and now it is 500000 lei.
In 1998, the MSE founded the National Securities Depositary (NSD), a non-commercial joint-stock company of closed type. The event coincided with the third anniversary of the first auctions. At the same time with the capital market development, the MSE's share reduced, while the stocks were divided between the NSD participants. In 1998, the introduction of a new trading system integrated with the depositary system gave the opportunity to operatively carry out transactions. The system implementation as well as the NSD foundation became possible thanks to the American company Price Waterhouse and USAID.
In April 2000, the Stock Exchange of Moldova received the status of a self-regulating non-commercial organization. As a self-regulating organization, the Stock Exchange is a constituent part of the common mechanism of the securities market regulation, vested with corresponding authority: it works out regulations and standards of its Members' activity.
But since 2008, due to the change of the securities market legislation the MSE lost its status of a non-commercial organization, becoming a commercial one and therefore losing its status of a self-regulating organization. Starting with 2000, in order to reflect the capital market trends, The National Commission introduced CNVM-32 index (at present CNPF). Through the years the calculation of the index has changed. The mechanism of the stock negotiations is governed by the MSE’s rules. Violations committed during the stock exchange transactions are examined by the Stock Exchange Disciplinary or/and Arbitration Commission.
In March 2015 the Law of Market of Securities has lost it’s force and the new Law of Capital Market, which has made big changes into the market’s structure and activities carried out on the market and the rules of the auctions with securities, came into full force.
In May 2015 MSE (Moldova Stock Exchange) received the market operator activities license and a permission on doing regulated market activities for unlimited time. Simultaneously, the regulated market rules, proposed by the general council of MSE, were approved.
In November 2015, MSE received a permission on doing multilateral activities of the market for unlimited time. Simultaneously, the multilateral trade system rules, proposed by the general council of MSE, were approved.
The Structure of the Stock Exchange of Moldova The supreme ruling body of the Exchange is the General Shareholders Meeting. Between the general meetings a well-organized and efficient management is performed by The Board of the company which consists of 18 persons, elected for the term of 4 years. The auditing commission of the company shall exercise control over financial and economic activities of the company and be accountable to the general meeting of shareholders only.
The Stock Exchange'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 MSE: Marketing, Listing and Quotation Department. It is engaged in registering securities at the Exchange, in examining and including securities in the Exchange listing. Listing is a system of the market support that creates favorable conditions for an organized market, that allows to reveal the safest and the most qualitative securities and promotes their liquidity.
A special role of the Exchange is its role as an information source, as organized market, as a source of dissemination of information about securities. In the monthly bulletin "Bursa de Valori a Moldovei" (the Moldova Stock Exchange), the Department publishes information on securities admitted to circulation at the Stock Exchange, presents statistics and auction analysis, as well as other information. Simultaneously, information on transactions, sale and purchase offers are broadcast in mass media and on the MSE’s website www.bvm.md
Market Supervision Department – performs the following functions: observance of the laws and requirements of the legislation in the Stock Exchange's activity; supervision of the activity of the Stock Exchange's Members settlement of legal matters. Electronic System Department.
The Department's functions are to control and support the Integrated Automated Trading System Stock Exchange (SAIT).