Azerbaijan, Baku, Dec. 20th / Trend, I. Khalilova /
The Baku Stock Exchange (BSE) is ready to start the implementation of certain ideas in the framework of cooperation with the London Stock Exchange (LSE).
The Institute of Depositary Receipts may be offered to the LSE at the initial stage, meaning that the securities that are listed on the BSE may also be represented on the London Stock Exchange, the chairman of the State Committee for Securities (SCS) Rufat Aslanli told journalists.
"The LSE accepts the terms of the Azerbaijani market as adequate for the offer of these securities on the London Stock Exchange, Aslanli said. We are cautiously optimistic about the success of these ideas. This kind of cooperation with the LSE will be the next step, following its IPO, which is expected in 2013."
He said, today, the institutional capacity of the Azerbaijani stock market allows cooperation and partnership with the LSE.
"We are certainly not interested in seeing the simultaneous entry of all potential issuers to the London Stock Exchange for the execution of their IPOs. This is not in our interests, not only from an institutional point of view, but also in consideration of the opportunities in the Azerbaijani economy. Since the BSE has opportunities for holding IPOs on its trading platform, we have agreed to offer the Institute of Depositary Receipts to the LSE at the initial stage", Aslanli said.
As for introduction of the FTSE Azerbaijan Index on the BSE proposed by the London Stock Exchange, Aslanli noted that any index to be introduced in Azerbaijan has to first of all be representative.
"It must provide objective information and be based on objective processes taking place in the field covered by the index, the head of the committee said. - In order to ensure the proper effectiveness of these tools, we have to focus not on the creation of visual tools such as indexes, but rather on a qualitative change in the market, the introduction of an IPO, a group of new institutional and private investors, non-performing specific contractual obligations, and on the effective management of these relations. "
In his eyes, a small number of issuers and sectors represented by them, increase market volatility and profit speculation.
"Hypothetically, we could introduce the index tomorrow, but it will take some time to prepare, as stated in the introductory listing of the FTSE Azerbaijan Index, issuers of at least five sectors should be represented, and each sector should be represented by more than one company," Aslanli said.
Speaking about the future of the Azerbaijani stock market, the head of the committee noted that at present, the BSE has established good contacts with all of the major stock exchanges of the world, which is the result of the dynamic development of Azerbaijan's economy and its stability during the global financial crisis during the last few years.
"Therefore, all institutions and markets consider the Azerbaijani stock market a market with huge potential," Aslanli said.