The Baku Stock Exchange (BSE) has determined stimulating requirements for the activities of a market maker in the bond market, Trend reports referring to the BSE Oct. 21.
This was done in order to stimulate supply and demand in trade and for the formation of competitive prices and increasing liquidity, according to the BSE.
By the decision of the BSE board, the following changes were made to the list of securities that are the subject of the market maker’s activities, as well as to the minimum amount of quotations:
Securities issued by international financial organizations of which Azerbaijan is a member are included in the list of securities of the first group, approved as the subject of a market maker’s activity.
The minimum amount of quotations changes as follows:
Regarding securities of the first group (government bonds of Azerbaijan’s Finance Ministry, notes of Azerbaijan’s Central Bank, bonds of Azerbaijan’s Mortgage and Credit Guarantee Fund and securities of international financial organizations of which Azerbaijan is a member), the amount was reduced by five times and stands at 300,000 manat ($176,815).
Regarding securities of the second group (corporate bonds and shares issued by other issuers), the amount was reduced by four times and stands at 50,000 manat ($29,471).
In accordance with the goals defined in the “Strategic Roadmap for the Development of Financial Services in Azerbaijan”, against the backdrop of a five-fold reduction in this requirement for securities of the first group, four-fold for securities of the second group, the establishment of a market maker institute is planned in the government securities market, while in the corporate securities market there are plans to increase market liquidity by stimulating the activities of a market maker.
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