Belarusian Stock Market Waits to Be Developed

Belarusian stock market is dropping behind the Russian one to a considerable extent. First of all it concerns the level of capitalization, liquidity of the corporate securities secondary market, the quantity of functioning market tools as well as development of intermediary services, for instance, institutional investors on the stock market. Such circumstances make serious demands for faster harmonization and synchronization of the two countries’ stock markets, as it is said in decree №3 of the Union State Council of Ministers which details the parameters of projected socio-economic development till the year 2009.

Belarusian stock market is dropping behind the Russian one to a considerable extent. First of all it concerns the level of capitalization, liquidity of the corporate securities secondary market, the quantity of functioning market tools as well as development of intermediary services, for instance, institutional investors on the stock market. Such circumstances make serious demands for faster harmonization and synchronization of the two countries’ stock markets, as it is said in decree №3 of the Union State Council of Ministers which details the parameters of projected socio-economic development till the year 2009.

Russian stock market has its own problems, for example, in the field of securities property rights. In Belarus this problem was successfully solved owing to the establishment of a two-level depositary system. Better regulation of relations in the field of securities property rights account may favour the harmonization of conditions in Union State stock markets.

The priorities of Belarusian securities market are the formation of a forward market and the development of a formal market (electronic commerce system, Internet-trade, etc.), working out and adoption of legislative and standard acts regulating the functioning of the securities market, in particular – issue and circulation of mortgage discharge bonds and notes, as well as the Code of Corporate Conduct.

Consolidation of Belarusian and Russian stock markets will greatly depend on the degree of involvement of people’s savings into investment processes. The main task for Russia is to heighten the stimulation of collective investment institution and individual-investor-oriented mechanisms.

Thus, harmonization of the two countries’ securities markets could further the systematization of respective Belarusian legislation, its unification in accordance with international terms of securities circulation as well as improvement of tax climate.