Azerbaijan, Baku, Feb.8 / Trend I.Khalilova /
It is planned to create an alternative platform for ex-pit transactions in the near future at the Baku Stock Exchange (BSE), chairman of the BSE board Emin Aliyev told Trend on Wednesday. Currently the BSE publishes data on ex-pit transactions.
"Creation of alternative platform for ex-pit transactions should affect transparency of pricing on the market, but this problem should be solved together with a solution covering the juridical and technical aspects," Mr Aliyev said. He added that one of the main tasks of the stock exchange is the opportunity to set just prices.
"Both investors and holders of securities are interested in the transparency of transactions from the perspective of the real value of the securities. On the other hand, there are cases when investors wish to remain anonymous, or for other reasons prefer privacy at a price of purchase or selling of securities," Mr Aliyev noted.
The trading system installed at the BSE, is in its functional qualities, an advanced one and technically ready for many changes dictated by the market.
"But we do not want to stop there and set the aim of continuous improvement of services. In this regard, in 2012 the issue of targeted sales will be resolved in finalising the trading system of the BSE," the head of the stock exchange said.
He noted that on one hand the question of targeted sales, as well as 'block trading' will develop in parallel with a comprehensive solution to the issue of transparency of pricing.
"On the other hand we do not aim to discourage direct sales. This practice exists all over the world and is unlikely to be eradicated," Mr Aliyev said.
He said in the medium term under a joint project of the State Committee on Securities and the World Bank (WB), Modernisation of Capital Markets, a new composition of the securities market will be created in Azerbaijan.
"Further processes for the development of the stock market will be associated with this project as its provisions affect almost all aspects of the market and, in particular the improvement of the trading system of stock exchange," Mr Aliyev said.
He said after the implementation of the project the market will become much more comfortable for investors, attractive for issuers, flexible for brokers, dealers and managers of companies.
"Undoubtedly, modernisation of the capital market will facilitate the possibility of many investors entering the market. Along with the traditional possibilities for using services of brokers, investors themselves will be able to enter the stock markets and implement their strategies for investing and asset management," the BSE head said.
For the implementation of the project the WB has allocated a loan to Azerbaijan worth $12 million and technical assistance from the Swiss State Secretariat for Economic Affairs (SECO) is $1.6 million.