Azerbaijan to create conditions for trade in foreign securities before 2018
Azerbaijan, Baku, Oct. 30 /Trend A.Akhundov/
The organisation and promotion of financial intermediation and work of schemes of collective investment are included in the priorities of development of Azerbaijan's securities market in the coming years, the concept of socio-economic development for 2014 and the next three years said.
Another priority is the institutional development of the securities market which in particular, involves the creation of a single depository system of government and corporate securities and integration of an operational-settlement system of the organised over-the-counter securities market into the clearing system, securities trading.
In early September 2013, the State Securities Committee of Azerbaijan announced about the completion of Azerbaijani National Depository Centre's project (NDC) on consolidation of the post-trading infrastructure. Prior to this project the NDC was performing the role of a central depository and registrar of the securities market.
From September 3, 2013, the NDC began carrying out the clearing and settlement functions for all transactions conducted at the Baku Stock Exchange (BSE) on the integrated model 'Delivery Versus Payment'. Thus, the NDC of Azerbaijan has centralised the full range of post-trading services, completing the formation of a central depository of the country's securities market.
The NDC said earlier it plans to introduce electronic services in the near future on the basis of a single post-trading platform. The possibilities of e-services will include an electronic register of security holders, electronic statements and online access to deposit accounts, electronic voting and other features. Support of the demand and offer on the securities market will be secured in line with this concept.
It is planned to create a legal framework in this direction for the activities of market maker institutions, promotion of their activities and creation of a platform for small and medium-sized businesses for alternative stock trading increasing their ability to attract funding from the stock market and formation of the regulatory framework for trade in the local market of securities traded on foreign stock markets and vice versa, as well as the establishment of a trading system.
The priority areas also include extension of the principles of financial transparency and corporate governance, improvement of the legal and regulatory framework of the securities market and raising awareness about the stock market and vocational training.