Stock Exchange`s operations to be brought in line with international experience - Baku Stock Exchange

12:22 - 28.10.2019


October 28, Fineko/abc.az. The amendments have been made to the Rules on Securities & Derivative Trading at the Baku Stock Exchange.

ABC.AZ informs that according to the changes, the range of corporate securities that are subject to REPO has expanded. Thus, in compliance with international practice, the requirement on the REPO closing date that securities subject to REPO be paid at least five days before the beginning of interest payment or repurchase has been removed.

That will allow conclusion of REPO transactions for a longer period and provide REPO financing. There is a requirement to freeze securities subject to REPO on the buyer's account and not on the seller's account.

However, if the REPO seller does not fulfill its obligation after the expiration of the term, the process will be resolved as soon as possible, since all rights to the REPO subject pass to the REPO recipient. At the same time, interest or dividend income on securities subject to REPO during the REPO period will be received by the REPO buyer.

In addition, in order to optimize targeted purchase and sale transactions concluded by the parties under the new rules at pre-agreed prices and conditions, the amount of large-scale transactions has been reduced from AZN 10 million to AZN 1 million for bonds with a market maker on the secondary market, and for other bonds - from AZN 5 million to AZN 500,000. These changes can help align operations conducted at the stock exchange with international experience, develop the REPO market, increase the number of closed transactions at the exchange and liquidity, stimulate the participation of financial mediators and attract to the BSE the transactions concluded on the OTC market.

 

Other news