Repo operations to be simplified in Azerbaijan
Baku, Azerbaijan, Mar. 19
By Azad Hasanli – Trend:
The process of carrying out repo transactions will be simplified in Azerbaijan, Trend reports referring to the Association of Stock Market Participants of Azerbaijan (AFBIA).
The matter was discussed by the participants of the stock market at the general meeting of the AFBIA. The main issue on the agenda was the discussion of the amendments to the General Agreement on repos and the rules of trade of the Baku Stock Exchange (BSE). Amendments to these documents are planned to be adopted in order to stimulate repo transactions in Azerbaijan.
Speaking at the meeting, Vugar Namazov, Chairman of the Board of the BSE, noted that an initial version of the amendments to the general agreement on repos and the relevant trade rules have already been prepared.
According to him, the amendments will simplify the process of carrying out repo transactions and increase the number of securities that can be the subject of repos.
A new member was also accepted at AFBIA during the meeting – namely, the investment company BTB Kapital.
According to data provided by the BSE, the volume of repos in the country for January 2019 amounted to 37.3 million manats, which is three times higher than the same period for the previous year.
Repo is a type of a transaction, in which securities are sold and an agreement is simultaneously concluded on their repurchase at a predetermined price.