Exchange Stock Market

Stock Market Sector

Members of the BCSE entitled to trade in securities are stockholders who are professional participants in the securities market. After having been accepted to the Stock Market Sector this member signs the agreement with the BCSE to be admitted to trades. Since this moment he is legally obliged to respect all BCSE normative documents regulating the order of transactions.

Listing

The following securities that have passed a procedure of issue and that meet the requirements of the Belarusian Law concerning information disclosure on the securities market as well as the BCSE’s requirements are admitted to the exchange circulation:

• Shares and bonds of legal entities of Belarus;
  
• Municipal loan bonds;
  
• Bills of exchange (represented by bills of BelTransGaz).
  

Non-residents’ securities are admitted both to circulation and placement as soon as they have a special license of the central authority that controls securities market in Belarus.

Admitted to the BCSE’s trades securities consist of listed securities and out-of-list securities.

There are the following kinds of quotation lists:

• First Level Quotation List A;
  
• Second Level Quotation List A;
  
• Quotation List B.
  

Trading in securities

Main tasks of the BCSE in organisation of trading in securities market are:

• holding trades in government securities, the National Bank’s short-term bonds;
  
• holding government securities auctions;
  
• holding non-government securities trades and auctions;
  
• control of authorities of participants, traders, clients and depositors;
  
• carrying out an agreement work with trade participants;
  
• registration of financial operation under strict control;
  
• reports on trades and auctions;
  
• providing exchange market participants with information and advisory support.
  

Being electronic one the securities market in Belarus functions within the universal automated securities trading and clearing system that provides:

• registration and control of securities purchase and sale bids;
  
• securities trades carrying out;
  
• transaction pricing;
  
• determination of funds and securities requirements and obligations for Sector Members admitted to trades;
  
• formation of reports upon the trade totals.
  

As far as the securities trading system is completely automated, any BCSE Member is empowered to trade in a remote mode. Trade in securities are daily carried out.

The automation of almost all exchange procedures in many respects determines the choice of trading mechanisms, stipulating their diversity. The general model of securities transactions conclusion in the electronic trading system (ETS) implies the submission of electronic purchase and sale bids in the ETS by the BCSE members at the first stage. As soon as bids and asks match the transaction is automatically concluded resulting in its registration in the ETS. The following stage implies transactions execution, obligations clearing and settlements procedures. The ETS allows to conclude various kinds of transactions of different settlement structure in several ways. Such modes represent an independent method of electronic trade in securities.

Clearing activity

Clearing and settlement mechanisms upon the exchange trades totals differ in stock market segments. What concerns government securities transactions, the National Bank functions both as a settlement bank and settlement depositary. In case of non-government securities transactions, the National Bank functions only as a settlement bank, whereas functions of the settlement depositary belong to the BCSE. Clearing functions at all market segments are carried out the BCSE, namely:

• organizing of interaction between trade participants, function of a settlement bank and settlement depositaries upon clearing and settlements results;
  
• receiving and processing the information from the settlement bank and settlement depositaries;
  
• providing separate control of obligations of each trade participant by means of maintaining his funds and securities positions;
  
• determining obligations under the concluded in the ETS transactions for trade participants;
  
• controlling the respect of “delivery against payment “ principle.
  

Depositary activity

The BCSE carries out the following main depositary functions:

• maintaining securities records on depot accounts of their owners and conformation of property rights on these securities by means of depot account statements;
  
• fixing charges and limits of owner’s rights on securities by means of securities transfer to the corresponding depot accounts divisions restricting depositor’s right to command these securities;
  
• registing passing of property right on securities registered in the exchange trading system;
  
• carrying out operations by depositor’s order on interdepositary securities transfer;
  
• carrying out functions of the depositary of the issuer.
  

The stock exchange provides both depots settlement under participants obligations on the day of trades and 100 % guarantee of transactions execution under all "depot" accounts at once.