BAKU, Azerbaijan, Oct. 1
By Fakhri Vakilov – Trend:
Uzbek Kapital Bank became the first market maker at the Uzbek Republican Currency Exchange (UzRCE), Trend reports referring to the UzRCE.
The bank will start performing as a market maker from October 4.
Kapital Bank became the market-maker of the foreign exchange market for the USD/ UZS_TOM instrument which is used for the purchase and sale of US dollars for Uzbek soum with the deadline for the fulfillment of obligations on the next business day after the auction.
TOM is an instrument that provides the transaction from dollar to Uzbek soum to be settled the next business day.
According to the rules of the UzRCE, a market maker is a dealer who took the obligation to conclude exchange transactions to maintain the level of prices, supply, and demand for exchange instruments.
A market maker is needed to maintain the level of liquidity in the market, thus helping exchange participants to increase their direct operations. Moreover, its role is to reduce Central Bank’s involvement in the market.
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