The private organization “Belarusian Currency Stock Exchange” began work on December 29, 1998. This is an open joint stock company, whose shareholders are 124 private individuals. It provides services related to the acceleration of capital turnover in the republican and world economies. The organization plays an important role in the country's economy, helping to enter international markets, while attracting investors.
The activity is related to the organization of the work of financial markets, cooperation in the field of communications and technical protection of information. The Belarusian Currency Stock Exchange supports the processes of circulation and storage of securities. In this regard, the organization organizes the trading of securities, both state and commercial, as well as storage and clearing activities.
Structural organization of the BCSE markets
BCSE, like other exchange organizations of this type, operate on the same principle. They bring the buyer with the seller or investor with the consumer. The Belarusian Currency Stock Exchange consists of the following departments, which are intermediaries between the parties performing transactions in each of the markets below:
- government securities market;
- currency market;
- stock market;
- derivatives market.
Government Securities Trading
Since 2004, the Belarusian Currency Stock Exchange has become the platform on the basis of which auctions for the placement of government bonds are held. She also acts as the organizer of secondary trading in government securities. A key feature of bidding in this market is the need for membership in the Stock Market Section. Perhaps this is after providing a set of documents, a list of which is presented in the regulatory exchange acts of the BCSE. After that, a market participant is admitted to trading. There are three types of activities of a government securities market participant reserved at the BCSE:
- securities trading at one’s expense and on one’s behalf;
- trading on its own behalf at the expense of the client;
- trade as a trustee (on its own behalf in the interests of the client for his funds).
Clients who use the services of bidders can be both residents of the Republic of Belarus and non-residents of the country.
Currency market of the BCSE
One of the functions of the BCSE is the trading of currencies and monetary units. Since the Belarusian ruble is not a currency (in the economic sense), its quotation in relation to other currencies and banknotes is based not on direct conversion, but on the basis of tendering and placing pre-orders. OJSC “Belarusian Currency and Stock Exchange” is the place where the official exchange rate of the Belarusian currency in relation to other currencies is received.
Based on information on supply and demand, the Belarusian ruble is set to display its current price for a certain trading period. It is a guide for banks of the Republic of Belarus and for the National Bank of Belarus. All available quotes for currencies are set in the Belarusian Currency Stock Exchange OJSC. The exchange rate of the dollar, ruble, franc, pound sterling and many others are set depending on the results of trading on the BFEX on weekdays.
Stock Exchange BCSE
The stock market is a department of the exchange where bonds of banks and exchanges, legal entities and financial institutions of non-bank structures, stocks of a public company, some municipal bonds, as well as short-term and long-term government bonds can be traded. The Belarusian Currency Stock Exchange is only a platform for placing these documents, the price of which is equivalent to a certain share of the fund.
By purchasing or buying bonds, the investor receives or gives away a certain part of the fund in exchange for the monetary amount in Belarusian rubles. The organization "Belarusian Stock Currency Exchange" supports trading within 5 business days. Investors and traders can get quotes and indices in a specially developed BEKAS system. This is a convenient and functional trading platform that meets the requirements of the regional market conditions.
Derivatives Market
The derivatives market is so far only a developing sector of trading on the BSE. Although now investors can conduct tenders involving their assets on available instruments. The derivatives market itself is represented by futures contracts of various nomenclature:
- at the exchange rate of the US dollar to the ruble of the Republic of Belarus;
- at the euro exchange rate to the ruble of the Republic of Belarus;
- at the exchange rate of the ruble of the Russian Federation to the ruble of the Republic of Belarus;
- at the exchange rate of the US dollar to the single currency of the Eurozone established by the ECB;
- at interest rates on government long-term bond markets.
Instrumental support of the investor at the IMEX allows you to bid on the principle of "continuous double auction." The technology also allows you to participate in trading operations remotely or from a workplace in the IMFB office. Market participants can conclude transactions in various directions with all available instruments.
OTC Activities
The organization “Belarusian Currency and Stock Exchange” organizes exchange trading, which requires information security systems. Since trading results are placed and stored in files, the exchange has developed a mechanism for their protection, equipped with a digital signature. At the moment, the BCSE is also engaged in improving information protection algorithms at each stage of its life cycle.
The Belarusian Currency and Stock Exchange has its own achievements in cryptography, the most effective mechanism of information protection. This activity is inextricably linked with the exchange processes, as it allows you to protect customers and their financial transactions. However, these processes do not affect the change in quotations, and therefore relate to over-the-counter activities.