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Activity of professional participants on securities market in Azerbaijan to be improved

Business Materials 15 January 2009 11:52 (UTC +04:00)

Azerbaijan, Baku, Jan. 15 / Trend , I.Khalilova, N.Ismayilova /

"The Azerbaijani State Securities Committee will improve the activity of professional participants on the securities market. An essential project will be worked out for this purpose," Chairman of the Committee Rufat Aslanli said.

According to him, the exchange of data between the Baku Stock Market and professional participants on the securities market - between brokers and dealers, will be transferred from paper to electronic format. Analogous changes are expected also in exchange with depositors and register holders.

"This will allow creating an "electronic climate" on the securities market, which must be of paramount task. And this will be realized by payment systems, which will accelerate operations with transferring to electronic operating mode," Aslanli added.

The need in introduction of changes into requirements for broker and dealer activity will arise after completion of complex analyses of the situation on the stock market both with legislative and from an institutional point of view.

"Prudential norms and our methodology on observation the activity of these institutes will inevitably changed. Since the capital flow was completely liberalized in Azerbaijan in the mid of 2008 there are not limits for operations," Aslanli said.

The number of professional participants on the securities market increased over the last years. Now their number reaches 40.As a result deprivations issuer of securities functions of professional participants on the stock market, subsidiaries were set up. Adjusted to the legislation, banks, being simultaneously an issuer of securities, cannot act as professional members, and this practice is used in the entire world.

When the term of banks' broker and dealer activity license expire, new licenses are issued to their subsidiaries. This process had to be completed prior to the beginning of 2009.

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