BSE: Main task-to develop classical instruments
By Sara Israfilbayova
The use of classical instruments of the stock market has not yet reached the desired level to form new instruments on their basis, Vugar Namazov, chairman of the board of the Baku Stock Exchange (BSE) told Trend.
Traditionally, bonds and shares are considered classic instruments of the stock market. There are also relatively new tools, such as, futures, warrant certificates, forward contracts and others.
Namazov noted that the necessary entrepreneurial thinking has not yet been formed in Azerbaijan, which would allow, in particular, perceive bonds as an alternative tool for raising funds.
“Today, our main task is to develop classical instruments, then we can talk about new derivatives or, for example, financial engineering tools, it is also important to develop a money market, and after its institutionalization, futures trading will become possible,” he said.
The total turnover of stock transactions on all instruments on the BSE in January-October 2017 amounted to more than 9.57 billion manats ($5.63 billion), which is 2.2 times higher than the same period in 2016, according to the BSE.
The volume of the government securities market amounted to 3.8 billion manats ($2.23 billion) [an increase of 8.4 times per year], the turnover of the corporate securities market - 1.37 billion manats ($805,800) [four-fold growth], and the derivatives market - 4.4 billion manats ($2.59 billion) [an increase of 22.2 percent].
BSE is the main stock exchange in Azerbaijan. It trades short-term treasury bonds, common stocks (primarily from former state-owned enterprises that have been privatized, including food and beverage, construction and banking companies), and foreign currency futures.
The mission of BSE is to establish and develop market infrastructure that will provide the trading of securities and efficient execution of transactions.
BSE began its operations on February 15, 2000 with the support of the State Committee for Securities of Azerbaijan. The first trading operation at the stock exchange was carried out on September 1, 2000.
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