Millionday News Time Wed 5/21/14 Part 1
Welcome Wednesday Night News Time With Millionday
[millionday] we have some very very encouraging news to look at -- good to see everyone
[millionday] here we go -- With the world’s eyes focused on the recent general elections in Iraq, little attention is being paid to the major changes taking place in Iraq's banking and finance industry.
As part of an effort to liberalize the economy, in the first three months of 2014, the Iraqi Central Bank granted approval of 15 Arab and international banks to open branches in Baghdad, with additional branches expected to open soon.
There is also a notable drive to grow and promote the stock markets, with senior Iraqi government officials and representatives from the country's two stock exchanges hosting a two-day forum in Dubai May 14-15 in a bid to court regional investors.
[millionday] note -- we have known of the nasdaq and forex conference recently and this is stating that they are and have made huge changes in the isx for preperations --- they would not be making huge changes for a stock market that will remain in country imo
[millionday] The Iraq Stock Exchange (ISX) is currently in the process of upgrading to the latest Nasdaq trading platform after signing an agreement with Nasdaq OMX in June 2013.
The new platform, currently used by more than 25 exchanges globally, is capable of supporting multiple asset classes, although the ISX concentrates mainly on cash equities.
Taha Ahmed al-Rubaye, chief executive of the ISX, said, “We will complete the implementation at the end of June, and it will go live at the beginning of July.” He also added, “We are working hard to modernize the exchange.”
[millionday] note -- the meaning of going live and the meaning of LIBERIZING the economy --- is obviously with the steps that they are taking for the global connection due to the meat of this report and their steps they have been taking with conferences etc ---- and with the move to activate the SECURITIES ACT --- NOW THEY STATE IT WILL GO LIVE JULY 1ST OF 2014
[millionday] The ISX is also assisting the Erbil Stock Exchange (ESX), the first exchange in Iraq’s semi-autonomous Kurdistan region, in setting up its Nasdaq trading system. It is due to be fully implemented in July, and the ESX hopes to see around five to 10 listings by the end of 2014, including a major telecom company. The ESX has $8 million in initial capitalization and 56 shareholders, primarily from the private sector.
[millionday] note -- kurdistan has announced that their goal of going live is August 1st of this year
[millionday] note -- obviously this may take longer - we are going to look at this whole report remember that forex is the trade of currency market
[millionday] Mr. Rbaya said, “We’re looking to have more than one financial center in Iraq. Maybe in the future we will also look at setting up an exchange in Basra.” Rubaye is also preparing to tackle an issue that has dogged the ISX since its establishment in 2004.
“Once we have gone live with our new Nasdaq trading platform in July, we’re going to invite foreign banks to submit their proposals to operate as a custodian.”
The lack of a custodian is viewed as the biggest hurdle to expanding the exchange and attracting foreign investors. Aside from political risk, they are also concerned about third-party risk in the absence of custodian services.
[millionday] note -- the entry of expertise is very important with the major merging that we have read so much about and also they have many international banks opening and they also announced the data entry for help with the private sector as well -- think about how much revenue that will bring for the private sector -- traning -expertise -- and also hooking with market
[millionday] “The biggest challenge is the custody issue,” says Sadeer Munir, managing director of the Baghdad-based financial advisory firm Melak Iraq. “I can’t remember the number of times we have had discussions with investors about custody.
Big institutions are shying away from the market, as they don’t have a custodian they can work with. Resolving that issue will serve as a big catalyst to growing the market! If you compare the size of the ISX to that of surrounding countries, it’s easy to see that it should be a lot larger.”
[millionday] note -- it is scary with expansion and also change as in the added market (ISX) -- very scary to not know and need training and help --- they are getting that help
[millionday] With 84 listed companies, the ISX has a market capitalization of $9.5 billion to serve a population of 30 million, an amount substantially smaller than other oil-dependent markets in the Gulf Cooperation Council, which range in size from $208 billion in the United Arab Emirates to $479 billion in Saudi Arabia.
Toward the end of 2013, the ISX asked the Iraqi Securities Commission (ISC), which regulates the stock market, to ease the requirements for custodians. In the past, industry insiders have complained that the proposed capital requirement set by the ISC was too onerous.
“The original requirement was $50 million, which is a large amount for such a small market,” said a source who requested anonymity.
[millionday] note -- we remember when it initially started and the amounts were enormous for companies just getting on their feet so this is good
[millionday] My understanding is that some of the big banks are now looking at offering their services in this regard,” said Sanjay Motwani, president of Sansar Capital, which runs one of the largest equity funds in Iraq and has invested some $27 million since 2011.
“Some of the major foreign banks have entered Iraq in the last couple of years, and they’ve said that custody is something on their template. So I’m hopeful that a custodian will be appointed and once it has, I wouldn't be surprised if it led to a 300% re-rating in the market, because there will be a huge wall of money hitting Iraq."
[millionday] ok so this is a huge WHOOOPOW -- this is huge for many reasons --- one the date of entry to the globe is july 1st according to their plans and the liberation of the economy is what we want and of course the connection to the globe requires a reality rate for trade with other markets and currency markets of course
[millionday] end of report
[carpet] With new news do you feel we’ll be waiting till July
[millionday] this should be talked about lot more but we could spend all night on it -- i am hoping that BGG and guest address this as well --- SO DONT MISS THE CALL
[millionday] carpet i do not think this means we will wait until july 1st -- although we have no date -- the preperation of the reality rate and cbi and banking before this hits the market would make alot of sense WHOOOOPOW -- i love it -- so encouraging
[angus] Was Tokeo sp? was it not to hit in July also?
[millionday] i had a report that was blocked from translation that showed a meeting with isx and tokyo and it would not surprise me if it was along the lines you are thinking due to the timeline given here -- we will have to wait to see but oh how exciting to see such a step on the way
[sliderule] just got home, what was good news?
[millionday] sliderule isx to go global july 1st to liberate the economy is the plan -- now if this is changed dont jump -- this is Iraq -- but this is from isx
[larrykn] reality rate before july ?
[millionday] larrykn i dont have a date but it would seem hard to go to the global market without a reality rate and only an imposed rate so we shall see -- brb with more
[millionday] here we go -- remember the system of information that they have or lack there of in iraq
[millionday] examined the Department of Commerce in its periodic ways of activating the role of the media in the transfer of the facts about the work of the ministry through interaction and communication with various media and expand the horizons of cooperation with them.
said a ministry statement today, said that "the Central Committee of the application of the principle of transparency in the ministry held its regular meeting headed by Undersecretary Walid al-Moussawi, as chairman of the Committee and the membership of general managers in government departments and
[millionday] note -- we would expect that the media would be used to help the understanding of all changes within the country to the citizens as a tool -- very important in that part of the world –
[millionday] enterprises ministry and discussed ways of activating the role of the media in the transfer of the facts about the work of the ministry through interaction and communication with various media and expand the horizons of cooperation with them. "
also discussed the subject of the provision of the ration card items in accordance with the Law Ministry Trade and mechanism of action of the ministry departments and companies and the nature of the services they provide.
[millionday] so as we see here --- they will be using the media to help the country understand the role of all ministries and also the government changes ect and are trying to get them on the same page -- no pun intended smile brb with more
[millionday] this is absolutely huge right now -- The UN Security Council, Wednesday, Iraqi politicians to work together through inclusive political process taking place in a timely manner and aimed at strengthening Iraq's national unity, sovereignty and independence, [
and speed up the formation of a government that represents the will of the Iraqi people and its sovereignty, while stressing that Iraq can Working through its democratic institutions and cooperation with the Iraqi society to address the challenges facing the country.
The council said in a statement received "tomorrow's Press," "We welcome the announcement by Independent High Electoral Commission for Elections in Iraq for the preliminary results of the Iraqi parliamentary elections, expressing his" aspirations for the final results, which are being finalized. "
[millionday] The Council stressed the "appreciation for the Office of the Independent High Electoral and the Government of Iraq, including the Iraqi security forces for their dedication in the work to prepare for these elections and conduct of the support of the United Nations Mission to help Iraq (UNAMI)."