BEST turnover of Baku Interbank Currency Exchange exceeds $12.5 bn
Baku, Fineko/abc.az. The Baku Interbank Currency Exchange (BBVB) marks the 10th anniversary of the launch of the e-trading system (BEST).
BBVB reports that e-trading in online regime held for the first time in the BBVB currency section on 9 July 2002. Due to the removed job places, the BEST system-connected Azerbaijani banks concluded then first "e-deals", the volume of which amounted to only $7,000 on that day. Being the first South Caucasus e-exchange system, BEST has become an integral part of the countrys financial market. As a result of growth of liquidity in less than a year, when the share of e-deals in the currency section reached 41%, the National Bank of Azerbaijan (currently: Central Bank of Azerbaijan) decided to carry out interventions in the foreign exchange market only through BEST.
In May 2008 it was launched a new version of BEST and conducted migration of users to the new trading and settlement system. Migration to new software covered users of BEST trade and information terminals. Through trade terminals, banks’ traders carry out dealer functions at Organized Currency and Interbank Credit Markets. Thanks to the new BEST interface the banks were able to take advantage of a new type of orders, significantly increasing the probability of concluding foreign exchange transactions even in times of low market liquidity. In order to improve risk management, risk managers can independently distribute trading limits for traders.
In addition, due to BEST information terminals the treasurers of credit institutions, financial director of holdings and large corporate clients, as well as the media are able to monitor the countrys financial market segments in real time. This is consistent with the BBVB concept which seeks to ensure equal access for all users to markets and provide them with quality services, including both services on organization of trading, settlements, management of a number of important risks, and IT support.
Introduction of new BEST trade and settlement system allowed the Exchange to use new financial instruments. In the future, BBVB will continue developing new technological ideas, introduction of new financial instruments and services to customers in the foreign exchange and money market segments.
Over 10 years of system operation it registered more than 10,000 transactions, the amount of which exceeded in total $12.5 bn.
The system, built on the principle of universality in the provision of exchange services, and today is a modern platform for complex management of currency risks and short-term liquidity of banks. BEST allows the Azerbaijani banks not only to conduct operations with foreign currencies (USD, EUR and RUR) with value dates T+0, T+1 and T+2, as well as operations on instruments EUR/USD_TOD, EUR/USD_TOM, SWAP_USD/AZN, SWAP_EUR/AZN, but also conduct active borrowing and placement of finances in the interbank credit market.
With the launch of e-trading system, officially registered as trademark “Birja Elektron Sistemində Ticarət”, BBVB reduced fees in the currency section on tools USD/AZN from 0.075% to 0.03%. The volume of commission fees from foreign currency buyer banks is limited to an amount equivalent to $500.
In addition, in order to increase further the liquidity of BEST, BBVB introduced appropriate changes to the rules of bidding. E-trading on the currency area is carried out within the morning and afternoon sessions, and the time of trading and settlements was increased much.
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