Azerbaijan’s Depository Center inks deal on clearing, settlement on securities with banks

Economy Materials 27 June 2019 18:18 (UTC +04:00)

Baku, Azerbaijan, June 27

By Rovshan Badalov - Trend:

The National Depository Center of Azerbaijan has signed a collective agreement on clearing and settlement on securities with AzerTel Bank, PASHA Bank, Xalq Bank and Yapi Kredi Bank, Trend reports with reference to the center.

The agreement was signed as part of the event organized by the Financial Market Supervisory Authority of Azerbaijan (FIMSA) titled “Improving the infrastructure of Azerbaijan’s capital market: prospects for development.”

The agreement provides for the use of a new clearing and securities settlement model in order to improve these operations and bring them in line with international practice. The introduction of a new model is aimed at more efficient regulation of liquidity in the market, including the settlement in the securities market by commercial banks, and the optimization of settlement modes.

A memorandum of understanding was also signed between FIMSA and Raiffeisen Bank International (RBI) on improving capital markets, depository, clearing and settlement operations.

It was noted that in order to attract foreign investors to the local market, there are plans to open nominal accounts of the National Depository Center in RBI.