Political and economic aspects of commodity exchange formation (ABSTRACT)

Erekle Ugrekhelidze

Recent political movements in Georgia have significantly promoted implementation of democratic reforms in Georgia. This fact is sure to strengthen investors’ interest towards Georgia, which will quicken the socio-economic development of the country.

At this time it is important that infrastructure should prove to be ready to create effective and reliable environment for investors’ activities.
The territorial location of Georgia and politico-economic factors make it possible to form commodity exchange. However, Georgia’s commodity exchange and commodity trade law is too hasty requiring further improvement. According to the Entrepreneurs’ law, commodity exchange formed as a legal entity has the right to be recognised as self-regulatory organisation according to clause 4, article 41 of Securities law of Georgia.
Formation of institutions dealing with commodity trade procedures is of no less importance. It is clear that broker firms will not be interested only in trade technologies, but also in reliable account and clearing procedures with the view to insuring risks in different exchange markets.
We think it is possible to gradually form the so-called commodity depository institution while organizing Georgia’s warehouse and terminal economy in accordance with international standards.