MY LADIES » October 26th, 2014, 1:31 pm
FROM THE ERBIL STOCK EXCHANGE.. TIMING ERBIL IS SAYING THEY EXPECT TO LAUNCH IN OCTOBER AS WELL, AND DOWN BELOW AS A POINT OF REFERENCE AND WHAT X-STREAM CAN DO IS BAHRAIN ALREADY USING IT SINCE JULY OF 2014.
THIS IS A VERY BIG STEP FOR ISX AND ESX, AND WITH OUR FOCUS ELSE WHERE WE WERE NOT EVEN AWARE THAT ERBIL HAD THIS PLANNED FOR THIS MONTH AS WELL.
LET'S SEE WHAT THE NEXT FEW HOURS BRING WHEN NASDAQ OPENS , UNTIL THEN STAY GROUNDED PLEASE.
Erbil Stock Exchange Launch this Year, as Economy Surges Ahead
4/28/2014 ERBIL, Kurdistan Region – The Erbil Stock Exchange (ESX) plans to launch by the end of the year, making it the autonomous Iraqi Kurdistan Region’s first private joint-stock market.
While there are other exchanges in Iraq, this will be the first in the northern Kurdish enclave. Its primary focus is on listing Kurdish companies, although it also fashions itself as a secure gateway to the greater Iraqi market.
Initial plans are to focus on equities trade (stocks), although energy companies have expressed interest in issuing corporate bonds on the exchange. The birth of ESX comes amid an economic boom in the Kurdistan Region, the only calm and secure portion of violence-torn Iraq and a thriving business hub.
Foreign companies, including international energy giants, are attracted by opportunities locally, and are increasingly keen on using Kurdistan as a gateway for opportunities in the rest of Iraq. Shwan Taha, chairman of Iraq’s largest brokerage house, Rabee Securities, suggests a stock market could attract a new level of foreign capital. “The trade relationship with Turkey is very important. But as far as investments in Kurdistan and Iraq, we haven‘t really started foreign investment. Even Turkish companies haven’t invested in Kurdistan massively yet. We’re just at the tip of the iceberg.”
According to recent government figures, the volume of investment in the region has reached $37 billion, some 80 percent of which is local. Kurdistan still remains a largely cash economy, where many people distrust banks and prefer to hoard cash in their homes. Yet, they are looking for a way to put their money to work, aware it is unsafe and unproductive inside their proverbial mattresses.
It is common for Kurdish investors to park their money in real estate. Not everyone, however, expects property values to rise forever. Many seek to diversify their asset portfolio, piquing curiosity in the idea of a stock exchange.
The primary challenge for ESX is encouraging Kurdistan’s many family companies to “go public.” An initial public offering (IPO) can raise capital for businesses, but it also requires transparent accounts. “There is curiosity but also concern. When you become joint stock, you have to make your finances public. Kurdish people are very private, especially when it comes to finances,” according to Jehan Akrayi, manager of the ESX’s Broker-Dealer Department.
In order to explain how an IPO can benefit companies and address the concerns of skeptics, ESX has held workshops, seminars, and conferences for potential issuers of stock. They have even gone to universities to educate the younger generation about how a stock market works.
Taha emphasizes that the ESX needs to engage only a small section of society right now: Those who can list on the exchange, and those with lots of cash to invest. “What we need is to educate institutions that the stock market is a good thing.
This means insurance companies, banks, pension funds and the large families in Iraq who can actually buy significant shares of a company. Dabbling in stocks isn’t everybody’s business.” “The majority of the population doesn’t understand what it means to own a share in a company, what your rights are, and what you get for it. You have to compare your average person on the street with somebody in Turkey in the 80s or in Dubai in the early 90s.” Even so, more than just a few rich individuals and companies could benefit.
A robust stock exchange would strengthen the Kurdish social security system, allowing pension funds to invest in the expanding economy. Taha emphasizes that a population boom is underway, and that Kurdistan should make the most of its petrodollars in anticipation of an ageing population. “As a resource-rich economy where the majority of the population is young today, we have to look at the future. We need a good pension system that could provide for this generation when the tide turns.” “In Kurdistan, we need huge investment. We can’t just provide that from exporting oil. In the coming 20-30 years we need to bring a lot of leverage in and have a thriving stock market whereby we can attract foreign capital interest.” Expanding the Kurdish financial system is also a hedge against political instability, transferring economic power from the public to the private sector.
The region has been locked in a dispute with Baghdad over oil revenues and marketing rights. The Iraqi Prime Minister Nuri al-Maliki has pulled the plug on funding to the Kurdistan Regional Government (KRG), delaying the delivery of state salaries, pensions, and public projects. Half-empty bazaars are a reminder that one in every 2.5 people in the region rely on government funds. A stronger private sector would hedge against further meddling. Lukman Surji, director of communications at ESX, admits that the economy has been hurt by tensions with the Iraqi capital. “It is affecting us. But is it permanent? No. Baghdad has two choices: give us our salary or we settle our own law. We don’t want to be independent, but if you don’t want us to be a part of Iraq, we will find ways to take care of ourselves.
Kurds survive.” Like Erbil itself, the exchange is growing quickly. It is looking to expand from 20 to 50 employees in the next months, although it still has to flesh out its spare headquarters, which quite noticeably is missing a lobby.
The small team is working with an American consulting firm, Louis Borger Group Inc., to prepare for the launch. ESX signed a five-year contract with NASDAQ OMX in October to use its state of the art “X-stream” trade platform.
Employees and management have been training and exchanging expertise with the Dubai Financial Market since 2012. ESX has $8 million in initial capitalization and 56 shareholders, primarily from the private sector. The first financial instruments were invented in this area 5,000 years ago, when clay tablets served as transferable promissory notes for deliveries of goods like barley or silver. Today, one part of modern Mesopotamia is poised return to the forefront of financial innovation.
Erbil stock exchange (ESX) has entered into an agreement with KITS Company
End of a long process nears as Iraqi Kurdistan's ESX chief predicts bright future
Iraqi Kurdistan's Erbil Stock Exchange (ESX) Appoints its Chief Executive Officer (CEO) 14.4.2014
Erbil Stock Exchange Launch this Year, as Economy Surges Ahead
High Hopes for New Stock Exchange in Iraqi Kurdistan
End of a long process nears as Iraqi Kurdistan's ESX chief predicts bright future
5/6/2014 February 22, 2014
ERBIL-Hewlêr, Kurdistan region 'Iraq',— The Erbil Stock Exchange (ESX) aims to be up and running in a few months time. Here, Abdullah Abdulraheem, the chairman of the ESX, talks exclusively to The National about the exchange and his plans.
How close are you and your team to the launch of the Erbil Stock Exchange?
We are in the final quarter of the set up stage but, of course, it has been a long process. It was first raised in 2007 and 2008 by [Massoud Barzani, the president of Iraqi Kurdistan], who wanted to know if we could launch a joint exchange with Baghdad. We held two or three conferences and decided that there was room for a new stock exchange in Iraq aside from the ISX [Iraq Stock Exchange]. We are now looking at a launch at the end of August or September.
What is the reason for the delay?
We are a little bit delayed but this was for our own sake. Due to our lack of knowledge we asked for assistance, which I think will attract more international investors. We are in a better position now, and I think that is good for all sides. We have asked for assistance from Nasdaq OMX and on February 21 the their team will arrive in Erbil and bring a copy of the system here to be installed. Their staff will train our staff for two weeks. By the end of July they will hand over the system to us. We need one or two months to get ready after that.
What are your expectations in terms of initial public offerings?
We don’t expect to have a lot of IPOs in the first year. I expect between five to 10 in the first year. We have identified various sectors: we have two or three banks, two or three companies in agriculture and some in thewww.Ekurd.net industrial sector. And going forward, we have many international oil companies in the Kurdistan region that we will try and attract too, to get them involved. I do not believe this is [too ambitious]. [The UAE’s] Emaar could be listed both here and in Dubai, for example, and [Shrajah-based] Dana Gas as could [firms such as] Pepsi [in Erbil and New York].
Will the ISX and ESX be rivals?
For sure, each stock exchange would like to be the winner and both of us would like to keep the companies that are listed on our exchanges. My expectation is that there are about 85 companies that are listed on the ISX that would be keen to cancel their listing there and join the ESX. But we would like to take part or contribute to the boom of the Iraqi economy in general.
Is there another stock exchange that the ESX has looked at to imitate?
Of course, if we imitate anyone we would want to imitate the successful ones. Last year we had a field visit to Dubai. We stayed about three or four days and had a look at how it works. At the end of our visit we signed a [memorandum of understanding].
What kind of investors are you targeting at the ESX?
Our goal is to bring in money, which is not invested, to flush it into the market. We want to attract both retail and institutional investors, of course, but one of the reasons that many people keep their cash at home and don’t like to deposit it in banks because of their beliefs – they think it is not right, under Sharia for example – we’d like to persuade them otherwise. But the second goal is to make it a channel to bring in international investment in the region. We want international, non-Iraqi investment through this. There is a stable situation here in Kurdistan, unlike the rest of Iraq. We don’t want people to hesitate to invest here.
Is it difficult to persuade family-owned companies to go public?
It is not easy but we are trying to convince them. We want to convince them through the media, and so on that by going through IPOs and becoming joint stock companies you can raise a lot more funds and you can create jobs also.
What do you see as the role of the ESX in the economy of Iraqi Kurdistan more generally?
It is important for the economy more generally of course; this is a good qualitative step. It’s a turning point.
Erbil Stock Exchange
Erbil Stock Exchange (ESX) due to begin operating in 2014
August 27th, 2014
Hawler, Kurdistan, Iraq, August 27th 2014– The first trading day of the new Erbil Stock Exchange (ESX) may take place in October, as conditions are being created for the launch to proceed ahead, said the Deputy CEO of ESX Sherwan A. Mustafa.
According to Mr. Mustafa, on the last meeting, the Board of Directors has decided the opening date for ESX. The Board members chaired by Mr. Abdullah Abdul Rahim (Abobangeen) unanimously voted to launch the exchange on October of this year, the aim is for the market to be launched before the end of 2014, and that the first trading day is scheduled for Mid-October.
He stated that all provisions for launching the stock exchange has been set, and for the last several month our professional staff and Broker Dealer members have been fully trained on the most advanced trading platform, offered by NASDAQ OMX the “X-Stream trading system”.
Erbil Stock Exchange operates under the umbrella of the Iraqi Securities Commission (ISC). Companies that are willing to list on the exchange will have to fulfill certain requirements, including yearly financial and audited accounts.
With the opening of the Erbil Stock Exchange in mind, the ESX plans to run several training courses for Investors, Issuers, and Broker Dealers on market basics, specifically aimed at Managers of future stock exchange intermediary companies said the Deputy.
The four season entrepreneur Deputy CEO, Sherwan A. Mustafa, is highly experienced executive in the financial marketplace, and banking systems, he possesses a wealth of experience and knowledge in the financial industry and delivers an excellent understanding of the operational and management requirements of the regional stock markets.
CONTACT: Lukman Surji Manager,
Corporate Communications and Public Relations
TEL: (+964) 427-3663
AND JUST WE ARE ALL CLEAR ABOUT X-STREAM AND IT'S CAPABILITIES BAHRAIN IS ALREADY USING IT!
The Minister of Finance Launches the New Trading Platform (X-stream) at Bahrain Bourse
[size=150]Jul 14, 2014[/size]
With the presence of H.E. Shaikh Ahmed bin Mohammed Al-Khalifa, the Minister of Finance and Minister in Charge of Oil and Gas Affairs, Bahrain Bourse (BHB) launched on Monday, 14th July 2014 its new trading platform (X-stream), one of the most developed and widely used platforms by stock exchanges worldwide.
Officials from the financial community, businessman, and officials from the companies listed at BHB, the Chairman and Board of Directors of BHB, and licensed brokers attended the launching ceremony.
H.E. Shaikh Ahmed bin Mohammed Al-Khalifa expressed his pleasure with the launch of the new developed trading platform at Bahrain Bourse. H.E. Shaikh Ahmed assured the commitment of the government in supporting the projects that will enhance Bahrain’s position as a leading financial hub in the region and at the same time increase the competitiveness of the Bahraini economy to attract more investments for all sectors that will, in return, increase economic growth and diversify the sources of local income in the Kingdom of Bahrain. H.E. Shaikh Ahmed said, “Bahrain Bourse is considered one of the important institutions to the national economy and it is supported by the leadership. The Bourse will play a vital role in the implementation of many key programs relating to the privatization of some of the governmental projects in the future.”
The Chairman of Bahrain Bourse, Mr. Yusuf Abdulla Humood expressed his thanks and gratitude to H.E. Shaikh Ahmed bin Mohammed Al-Khalifa for his patronage and presence for the launch of the trading platform ceremony. Mr. Humood also thanked H.E. Shaikh Ahmed for his support to the Bourse since its establishment.
Mr. Humood said, “Replacing the trading platform is a milestone in the history of the capital market sector in the Kingdom of Bahrain, and is one of the key projects of the Bourse’s strategy that was adopted in 2011 to develop all work aspects at Bahrain Bourse.” “Bahrain Bourse will soon announce the launch of various initiatives and projects that aim to develop BHB, increase its liquidity, and attract more investors to invest in this sector. We hope to get positive cooperation from all related parties in order to achieve the desired outcome that will support the prosperity of the Kingdom’s economy,” he added.
The Chief Executive Officer of Bahrain Bourse, Shaikh Khalifa bin Ebrahim Al-Khalifa said, “We, at the Bourse, are proud that we successfully completed this huge project according to the action plan that was set. I extend my thanks to the Bourse’s Board of Directors for their tremendous support and facilities they have provided to the executive management in order to implement this project.” Shaikh Khalifa also revealed that BHB in cooperation with the team of “Nasdaq OMX”, the company providing the platform, successfully completed several tests and virtual trading sessions during the previous months in order to test the effectiveness of the platform and its capability under various possible circumstances.
Shaikh Khalifa said, “The new platform will enable the Bourse to provide more services to its clients, including issuers and investors according to internationally approved standards. The platform will also enable rapid execution and settlement of transactions at the Bourse and enhance transparency. It will also enhance the Bourse’s capability to open up a new trading market for investors to trade in more investment instruments besides the shares, bonds and sukuk. The technology of the new platform will enable investors to trade in derivatives, options, future options, and other instruments.”
Shaikh Khalifa extended his thanks and gratitude to “Nasdaq OMX” representatives, the brokers, and Bahrain Bourse’s team for their outstanding efforts during the previous months, where they were able to overcome all the obstacles they have faced, and successfully launched this project with their commitment and hard work.
It is worth mentioning that Bahrain Bourse and “Nasdaq OMX” signed an agreement in July 2013 to replace the “Horizon” trading platform with “X-stream” that was designed by “Nasdaq OMX” and is widely used by stock exchanges worldwide.