BELGRADE STOCK EXCHANGE

Belex 15 Marina Jankovic

Index

Trading methods Black trading Single price method Continuous price method Economy of Serbia- GDP Foreign Exchange Reserves BeleFix Beta coefficient

More info

Trading methods

Block trading is a block transaction in a security traded at the regulated market or MTP, which has been concluded outside the session at which trading is conducted by the single price auction method or continuous trading method, in the bilateral relation of one buyer and one seller and according to conditions prescribed by the Rules.

For securities trading the fluctuation zone is determined.

Trading methods

Single price method In the single price method the members place

trading orders in the pre-opening phase, and the price is determined during the auction phase based on the placed trading orders.During the single price determination the following criteria are applied:1. maximization of the trading volume,2. minimization of the difference between the possible price and the reference price.The single price is determined as the price of the greatest trading volume measured by the amount of the given security.

Trading methods

Continuous trading method Trading orders continuously placed to the BelexFIX in the continuous

trading method, in the countinous trading phase, are entered into the electronic order book.The BelexFIX continuously compares the price conditions and the quantity of the existing placed but unexecuted orders to the newly placed trading orders, and when the conditions of trading orders permit, the transaction is concluded.Trading orders waiting for execution are executed according to the price priority of the order, and if the prices in two or more orders are equal, the priority is given to the order placed earlier.The execution of a particular trading order is possible if an order of the opposite type transaction exists in the BelexFIX with the price equal or better than the active status order waiting for execution.The at-the-close price is determined as the average weighted price of the traded units of each security during the trading session.

More information on particular trading methods can be found in the Rules of Business Operation of the Belgrade Stock Exchange.

Economy of Serbia

Year 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

GDP (USD Billions) 8.7 11.4 15.1 19.7 23.7 25.3 29.6 40.4 47.7 40.2 36.7 43.3 37.4 43.3

GDP growth rate 5.3% 5.6% 3.9% 2.4% 9.3% 5.4% 5.2% 6.9% 5.5% -3.0% 1.0% 1.6% -1.7% 2.0%

GDP Per Capita (USD) 1152 1524 2013 2630 3177 3400 3957 5304 6485 5497 4891 5725 4943 5667

GDP (PPP) per capita

(Geary-Khamis $)5698 6163 6509 6830 7617 8315 8928 9722 10360 10125 10118 10405 10405 10788

Foreign Exchange Reserves

Foreign exchange reserves (year-end)

Year 2000 2001 2002 2003 2004 2005 2006 2007 2008

National bank (bn USD)

0.52 1,17 2,28 3.55 4.24 5.84 11.89 14.22 11.48

Domestic banks (bn USD)

0.37 0.64 0.78 0.89 0.91 0.70 0.75 1.85 1.37

Total (bn USD)

0.89 1.81 3.06 4.44 5.15 6.54 12.64 16.07 12.85

BeleFix

BELEXFIX is the official trading system of the Belgrade Stock Exchange based on the Fix protocol.

Following the experience of the developed countries, the Belgrade Stock Exchange decided to develop a trading system with a unique protocol for exchange of information on financial markets, known as FIX protocol. The Exchange opted for the implementation of this protocol in order to ensure a modern, safe and fast exchange of information. The system was developed with the assistance of external cooperators and was launched on 14.04.2008.

The trading system consists of several interconnected modules, enabling all the Exchange functionalities.

The Listing Modul is used for registration of market materials, their inclusion into the Exchange markets, trading suspensions, registration of Exchange members, their licences, suspensions and authorized brokers. This modul enables efficient functioning of the Listing Department in terms of optimization of the business process, while the reports within the module facilitate everyday work of the staff in this department. The novelty introduced by this system is the electronic prospectus, delivered by the issuers to the Exchange. The new form of prospectus reduces the time necessary for its generation, control and entering into the system.

The main modul and the central part of the system is the Trading modul. Two trading methods are implemented into this modul - continuous and single price auction methods – along with all types of currently used orders, with the possibility of simple addition of new types of orders. This modul consists of two parts: Trading Configuration application and Trading Engine. Trading Configuration application enables users to take over the basic data on market materials, authorized brokers and Exchange members and administrate them for the purpose of trading. This application is used to define the Exchange market, trading rules, rules of order placement, and the Exchange realized a trading application used by Exchange members. For trading supervision and monitoring the Market Supervision modul is used, which enables trading in both on-line and off-line regimes.

The Information modul enables a simple generation of all regular and other reports. This model enables automatic generation of periodical reports and is connected with the Exchange web site.

Beta coefficient

A measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. Beta is used in the capital asset pricing model (CAPM), a model that calculates the expected return of an asset based on its beta and expected market returns.Many utilities stocks have a beta of less than 1. Conversely, most high-tech, Nasdaq-based stocks have a beta of greater than 1, offering the possibility of a higher rate of return, but also posing more risk.

Comparison of portfolio and belex