Transcript Turkish Capital Markets And Istanbul Stock Exchange

FOURTH MEETING OF THE OIC MEMBER
STATES’ STOCK EXCHANGES FORUM
Istanbul, October 2-3, 2010
Hüseyin Erkan
Istanbul Stock Exchange
Chairman & CEO
1
Background
 The Forum aims to provide a dedicated platform and communication
channel for representatives of the relevant OIC organizations and
institutions to discuss international cooperation activities.
 Initiated in accordance with the decision of the 20th session of the
Standing Committee for Economic and Commercial Cooperation of the
Organization of the Islamic Conference (COMCEC), in 2004.
 First round-table meeting, Istanbul, March 2005
 Second Annual Meeting, Istanbul, October 2008
◦ One working committee and four task forces to operate under the Committee
were established. The Working Committee held its first meeting in Tehran in
May 2009.
 Decisions of the 2nd Annual Meeting were presented to and included
in the 24th session of the COMCEC, 2008
◦ The Forum’s decision regarding the encouragement of the capital markets
authorities was strongly emphasized in the report of the 24th session of the
COMCEC.
Background - 2
 Third Annual Meeting, Istanbul, October 2009
◦ The four task forces operating under the Working Committee were renamed and were assigned new tasks.
 Decisions of the Third Annual Meeting were presented to and
included in the 25th session of the COMCEC, 2009
◦ Final Report was submitted to the COMCEC and regulatory bodies of the
OIC member states requested that a similar platform to boost the
cooperation efforts be established.
 Third Working Committee Meeting, Abu Dhabi, April 2009
◦ All task forces were requested to present a road map, time schedule and
more specific proposals to the Annual Meeting. It was decided that an
interactive link be created on the OIC Member Stock Exchanges website.
Decisions of the 3rd Annual Meeting of the OIC Member
States’ Stock Exchanges Forum and the Tasks Accomplished
• 1. The name of the Task Force for “Customized Indices, ETFs and
Islamic Depositary Receipts” is converted to “Customized Indices
and Exchange Traded Islamic Financial Products”. The Forum
appreciates the work done by the Task Force.

------------------------OUTCOME------------------------As determined.
Decisions of the 3rd Annual Meeting of the OIC Member
States’ Stock Exchanges Forum and the Tasks Accomplished
• 2. The Task Force for Customized Indices and Exchange Traded
Islamic Financial Products together with IDB, shall communicate
with various index providers to determine alternative types of
investable indices (e.g. corporate governance index, regional
index, sectoral index), by the next Working Committee meeting
------------------------OUTCOME------------------------ Proposals were made by three major index providers for the construction
of an “OIC Index”. The Forum prefers such index to include the companies
in the OIC countries, and believes that such index will create a new
demand.
Decisions of the 3rd Annual Meeting of the OIC Member
States’ Stock Exchanges Forum and the Tasks Accomplished
• 3. The Task Force for Customized Indices and Exchange Traded Islamic
Financial Products shall consult with IIFM and AAOIFI to determine
ways to offer practical, easily comprehensible and cost effective
financial instruments, particularly exchange traded commodity
contracts and Islamic repos and shall make recommendations to the
Working Committee
------------------------OUTCOME------------------------
The Task Force for Customized Indices and Exchange Traded Islamic
Financial Products presented its work on financial instruments including
repo, commodity murabaha, and indices to the Working Committee
meeting in Abu Dhabi. IIFM Repo Reference Paper, published in July 2010,
might be a good reference point and might provide specific answers for
Islamic repo. More to come from IIFM today.
Decisions of the 3rd Annual Meeting of the OIC Member
States’ Stock Exchanges Forum and the Tasks Accomplished
• 4. The name of the Task Force for “Feasibility of Islamic Securities
Exchange” is converted to “OIC Capital Markets Linkages”. The Forum
appreciates the information provided on ASEAN Gateway. The Forum
encourages and supports such initiatives. Members of the Forum may
participate in such linkage gateways at their own options. Cross-border
models of linkages, in particular, multilateral modalities of simulated
trades should be further studied by the Task Force.
------------------------OUTCOME------------------------
A proposal entitled “Settlement-Aware Interlink Protocol” for linking trade
and post trade service providers among the OIC countries’ capital markets was
presented by Tehran Stock Exchange and Central Depository of Iran. New
models for linkages can be devised.
Decisions of the 3rd Annual Meeting of the OIC Member
States’ Stock Exchanges Forum and the Tasks Accomplished
• 5. The name of the Task Force for “Promotion of Awareness and Education
of Investors about Islamic Capital Markets” is converted to Task Force for
the “Promotion, Awareness and Investor Education about Islamic
Financial Markets”. The efforts of the Task Force are appreciated and the
promotional material presented has been well received. The Task Force
shall prepare an annual publication covering research, articles,
advertisements and educational materials while the member exchanges of
the Forum shall provide links to the Forum web site.
------------------------OUTCOME------------------------ Bursa Malaysia presented the template of the OIC Directory to the Working
Committee. The Forum Secretariat is working on converting the Forum website into
an interactive website. Thomson Reuters (TR) is working on a project to create a
section within TR on the OIC exchanges.
Decisions of the 3rd Annual Meeting of the OIC Member
States’ Stock Exchanges Forum and the Tasks Accomplished
• 6. Training programs organized by the OIC capital markets institutions
shall be announced on the OIC exchanges web site
http://www.oicexchanges.org . The Forum welcomes the offer made by
SESRIC that the Center is ready to assume the role of Forum’s Training
Activities Coordinator in capacity building for the Forum members.
------------------------OUTCOME-------------------------
 No activity so far
Decisions of the 3rd Annual Meeting of the OIC Member
States’ Stock Exchanges Forum and the Tasks Accomplished
• 7. The Forum appreciates the work done by the Task Force for PostTrade Services. Bilateral cooperation among post trade institutions to
facilitate more efficient cross-border trading should be encouraged
and such efforts shall be reported to the Working Committee. As an
initial step, bilateral correspondent accounts will be opened between
the interested members of the Forum.
------------------------ OUTCOME ------------------------ The questionnaire prepared by Takasbank as the task force coordinator was
presented to the Working Committee, however, it contains the data of only 8-9
CSDs. An inter-committee meeting of the task forces for the OIC Linkages and
Post-trade services may be held for the work on linkages.
Decisions of the 3rd Annual Meeting of the OIC Member
States’ Stock Exchanges Forum and the Tasks Accomplished
• 8. The next Working Committee Meeting of the Forum shall be hosted
by the Abu-Dhabi Securities Exchange on a date to be further
announced by the Secretariat.
------------------------OUTCOME------------------------ As determined.
Decisions of the 3rd Annual Meeting of the OIC Member
States’ Stock Exchanges Forum and the Tasks Accomplished
• 9. The Fourth meeting of the OIC Member States’ Stock Exchanges
Forum shall be held in Istanbul on a date to be further announced by
the Secretariat.
------------------------OUTCOME------------------------ As determined.
Decisions of the 3rd Annual Meeting of the OIC Member
States’ Stock Exchanges Forum and the Tasks Accomplished
• 10. The following stock exchanges are included in the Task Force
for Customized Indices and Exchange Traded Islamic Financial
Products:
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Saudi Arabian Stock Exchange (Tadawul), Saudi Arabia;
Dhaka Stock Exchange, Bangladesh,
Lahore Stock Exchange, Pakistan
Tehran Stock Exchange, Iran
------------------------OUTCOME------------------------ As determined
Decisions of the 3rd Annual Meeting of the OIC Member
States’ Stock Exchanges Forum and the Tasks Accomplished
• 11. The following post-trade services institutions are included in
the Task Force for Post-Trade Services:
o Central Securities Depository of Iran, Iran
o National Clearing Company of Pakistan, Pakistan
o Abu Dhabi Securities Exchange, UAE
------------------------OUTCOME------------------------ As determined