Beirut Stock Exchange
Encyclopedia
The Beirut Stock Exchange (or BSE) is the principal stock exchange
of Lebanon
. Located in Beirut
, it is a public institution run by a committee including a Chairman, a Vice-Chairman and eight members appointed via a decree issued by the Council of Ministers, in accordance with a proposal by the Minister of Finance. All BSE members are Lebanese
Joint stock companies (SAL) with a capital above 500,000 Lebanese Pound
s and registered at the secretariat of the Commercial Register in. Members include holding companies
and offshore companies. The BSE authorizes Brokerage firm
s the operation and trade in securities listed on the BSE according to the Bourse
trading system and also lists the issuing companies (called "Listed companies") that have any of their stocks or other financial instruments listed.
. Trading at that time was concentrated on gold and currency transactions, however in the 1930s there was an inflow of French
, Syrian and local Lebanese investment which made it possible for the BSE to flourish, especially with the establishment of mixed Lebanese-French joint stock companies that were quoted simultaneously on the Paris
and Beirut Stock Exchanges. The activity in the 1950s and 1960s increased with the enlisting of various banking, industrial and services companies along with an amount of 50 listed bonds.
During the Lebanese Civil War
trading activity halted in 1983. After 11 years a new administrating committee (in collaboration with the Bourse de Paris) re-launched the BSE with a new internal bylaw, re-structured and streamlined mechanisms and trading systems. A new automated brokers system was introduced, based on the fixing price instead of the traditional OTC
voice brokers. On November 22, 1996, the BSE officially re-launched the trading activity in its hall. The BSE and Bourse de Paris signed a cooperation agreement in June 1999 and the new Europe
an NSC-UNIX
–Euronext
system was set. In 2000, new forms of securities were listed such as GDR (Global Depository Receipt
), investment funds shares, preferred stocks, priority shares and any other tradable derivatives. In late 2006, the BSE launched a new Remote Trading System, allowing the brokers to trade with the securities listed on the BSE "remotely" from their own offices.
Stock exchange
A stock exchange is an entity that provides services for stock brokers and traders to trade stocks, bonds, and other securities. Stock exchanges also provide facilities for issue and redemption of securities and other financial instruments, and capital events including the payment of income and...
of Lebanon
Lebanon
Lebanon , officially the Republic of LebanonRepublic of Lebanon is the most common term used by Lebanese government agencies. The term Lebanese Republic, a literal translation of the official Arabic and French names that is not used in today's world. Arabic is the most common language spoken among...
. Located in Beirut
Beirut
Beirut is the capital and largest city of Lebanon, with a population ranging from 1 million to more than 2 million . Located on a peninsula at the midpoint of Lebanon's Mediterranean coastline, it serves as the country's largest and main seaport, and also forms the Beirut Metropolitan...
, it is a public institution run by a committee including a Chairman, a Vice-Chairman and eight members appointed via a decree issued by the Council of Ministers, in accordance with a proposal by the Minister of Finance. All BSE members are Lebanese
Lebanon
Lebanon , officially the Republic of LebanonRepublic of Lebanon is the most common term used by Lebanese government agencies. The term Lebanese Republic, a literal translation of the official Arabic and French names that is not used in today's world. Arabic is the most common language spoken among...
Joint stock companies (SAL) with a capital above 500,000 Lebanese Pound
Lebanese pound
The Lebanese pound is the currency unit of Lebanon. It is divided into 100 piastres but inflation has eliminated the subdivisions....
s and registered at the secretariat of the Commercial Register in. Members include holding companies
Holding company
A holding company is a company or firm that owns other companies' outstanding stock. It usually refers to a company which does not produce goods or services itself; rather, its purpose is to own shares of other companies. Holding companies allow the reduction of risk for the owners and can allow...
and offshore companies. The BSE authorizes Brokerage firm
Brokerage firm
A brokerage firm, or simply brokerage or broker in context, is a financial institution that facilitates the buying and selling of financial derivatives between a buyer and a seller...
s the operation and trade in securities listed on the BSE according to the Bourse
Bourse
Bourse may refer to:*exchange *stock exchange*Bourse : metro station, Paris, France*Bourse de Travail: French labor council-Exchanges:*Paris Bourse: Euronext Paris, historical Paris stock exchange...
trading system and also lists the issuing companies (called "Listed companies") that have any of their stocks or other financial instruments listed.
History
Beirut Stock Exchange, the second oldest market in the region, was established in 1920 by a decree of the French commissionerFrench Mandate of Lebanon
The state of Greater Lebanon, the predecessor of modern Lebanon, was created in 1920 as part of the French scheme of dividing the French Mandate of Syria into six states....
. Trading at that time was concentrated on gold and currency transactions, however in the 1930s there was an inflow of French
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
, Syrian and local Lebanese investment which made it possible for the BSE to flourish, especially with the establishment of mixed Lebanese-French joint stock companies that were quoted simultaneously on the Paris
Paris Bourse
The Paris Bourse is the historical Paris stock exchange, known as Euronext Paris from 2000 onwards.-History and functioning:...
and Beirut Stock Exchanges. The activity in the 1950s and 1960s increased with the enlisting of various banking, industrial and services companies along with an amount of 50 listed bonds.
During the Lebanese Civil War
Lebanese Civil War
The Lebanese Civil War was a multifaceted civil war in Lebanon. The war lasted from 1975 to 1990 and resulted in an estimated 150,000 to 230,000 civilian fatalities. Another one million people were wounded, and today approximately 350,000 people remain displaced. There was also a mass exodus of...
trading activity halted in 1983. After 11 years a new administrating committee (in collaboration with the Bourse de Paris) re-launched the BSE with a new internal bylaw, re-structured and streamlined mechanisms and trading systems. A new automated brokers system was introduced, based on the fixing price instead of the traditional OTC
OTC Bulletin Board
The OTC Bulletin Board or OTCBB is an interdealer electronic quotation system in the United States that displays real-time quotes, last-sale prices, and volume information for many over-the-counter equity securities that are not listed on the NASDAQ stock exchange or a national securities exchange...
voice brokers. On November 22, 1996, the BSE officially re-launched the trading activity in its hall. The BSE and Bourse de Paris signed a cooperation agreement in June 1999 and the new Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...
an NSC-UNIX
Unix
Unix is a multitasking, multi-user computer operating system originally developed in 1969 by a group of AT&T employees at Bell Labs, including Ken Thompson, Dennis Ritchie, Brian Kernighan, Douglas McIlroy, and Joe Ossanna...
–Euronext
Euronext
Euronext N.V. is a pan-European stock exchange based in Amsterdam and with subsidiaries in Belgium, France, Netherlands, Portugal and the United Kingdom. In addition to equities and derivatives markets, the Euronext group provides clearing and information services...
system was set. In 2000, new forms of securities were listed such as GDR (Global Depository Receipt
Global Depository Receipt
A global depository receipt or global depositary receipt is a certificate issued by a depository bank, which purchases shares of foreign companies and deposits it on the account...
), investment funds shares, preferred stocks, priority shares and any other tradable derivatives. In late 2006, the BSE launched a new Remote Trading System, allowing the brokers to trade with the securities listed on the BSE "remotely" from their own offices.
Hours
The exchange has pre-trading sessions from 09:00am to 09:30am and normal trading sessions from 09:30am to 12.30pm on all days of the week except Saturdays, Sundays and holidays declared by the Exchange in advance.See also
- Economy of LebanonEconomy of LebanonThe economy of Lebanon is a developing economy, with a private sector that contributes to 75% of aggregate demand and a large banking sector that supports this demand. In 2009, Lebanon ranked 33rd in the Human Poverty Index...
- List of European stock exchanges
- List of Mideast stock exchanges
- FFA Private BankFFA Private BankFFA Private Bank is a financial services provider in Beirut, Lebanon specializing in the fields of Capital Markets and Wealth Management.Founded in 1994 as a Financial Brokerage House by Jean Riachi, FFA was granted a banking license in 2007 by Lebanon's Central Bank .The Bank also operates from...