Beirut Stock Exchange - History

History

Beirut Stock Exchange, the second oldest market in the region, was established in 1920 by a decree of the French commissioner. 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 European 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.