Integrated trade and surveillance system launched at Azerbaijani stock exchange (UPDATE)

Business Materials 17 February 2016 17:19 (UTC +04:00)

details added (first version posted at 12:54)

Baku, Azerbaijan, Feb. 17

By Anvar Mammadov - Trend:

A ceremony of launching the integrated trade, post-trade and surveillance system on the Azerbaijani securities market was held on the Azerbaijani State Securities Committee Feb. 17.

Rufat Aslanov, chairman of the Azerbaijani State Securities Committee, Angela Prigozhina, World Bank (WB) private and financial development sector leading expert in the South Caucasus and Young Sang Kwon, representative of the Korea Stock Exchange participated in the event.

The system has been worked out as part of improving Azerbaijan's capital markets and will enable to strengthen the control over the ongoing transactions, unify the process of receiving reports about the conducted transactions from the professional market participants and prevent possible manipulation and dissemination of insider information on the market.

The test work on introducing the software, as well as trainings for local specialists and participants of the exchange, who will use this system, have been recently conducted.

The information systems have four subsystems: the trading platform (for Baku Stock Exchange, clearing and settlement system, as well as information depository system (for the National Depository Center) and market supervisory system (for the State Securities Committee and the Baku Stock Exchange).

The Korea Stock Exchange won the Azerbaijani State Securities Committee's tender for equipping and installing the information system of the capital markets January 13, 2015 within the modernization and automation of the capital market infrastructure upon a World Bank (WB) joint project entitled 'Capital Markets Modernization'. The contract value amounted to $5.5 million.

According to the contract, the Korea Stock Exchange has established information systems of trade, post-trade and surveillance. These measures are aimed at simplifying and optimizing the trade and post-trade architecture on the securities market.

WB approved allocating a loan to Azerbaijan in the amount of $12 million for the 'Capital Markets Modernization' project in March 2011. The total project cost is $15.8 million. Besides the WB loan, the Swiss State Secretariat for Economic Affairs (SECO) delivered a grant worth $1.6 million, while the Azerbaijani government - $2.2 million to implement the project.