FEDERATION OF EURO-ASIAN STOCK EXCHANGES > YEARBOOK 2002/2003 > PAGE 25
BAKU STOCK EXCHANGE
LETTER FROM THE PRESIDENT
The main goal of the BSE in 2002 was the launching
of a new financial instrument, repo, which allowed
for the development of the secondary market in
government short-term bills (SSB).
In 2002 the Baku Stock Exchange (BSE)
gained a foothold in financial markets as a
professional participant in the securities
market. Trading volumes in all sectors
increased, as did the number of investors. activated, the BSE plans to play a leading
role. We have increased the awareness of
potential investors on the opportunities
provided by the BSE by conducting seminars
and meetings with these investors.
Since 2001, the volume of trading in
secondary SSBs has increased by 96.7%. In the coming year enterprises in such fields
as energy, oil and telecommunications will
be privatized; thus we expect radical changes
in the stock market, in particular in the
corporate sector. The BSE is preparing for
these changes, taking an overview of our
In 2002, the BSE put forth efforts in the
development and expansion of the corporate
securities market. Considering that the
second program for privatization has been
internal legal base and making it more
flexible.
The Baku Stock Exchange continues to
cooperate with foreign stock exchanges
and to benefit from their experience.
Salim Kriman
President
HISTORY AND DEVELOPMENT
The establishment of a stock exchange was a
necessary step in the creation of a modern stock
market in Azerbaijan. Due to its geopolitical
location Azerbaijan is an important regional
center of business activity. In this respect the
availability of a stable and developed securities
market plays a substantial role in raising investors'
confidence in the economy of Azerbaijan and
the region.
The shareholders of the BSE are leading Azeri
and foreign banks and investment companies.
The share of one shareholder in the capital of
BSE is equal to US$ 61,250. As the supreme
decision-making authority of the Exchange, the
last general shareholders’ meeting re-elected
members of the Supervisory Council. members of the BSE. The membership fee of
the BSE is equivalent to US$ 61,250.
The trading floor of the BSE is equipped with 30
computerized trading stations, 18 of which
belong to the shareholders of the Exchange. The
other 12 are available for new Exchange
members. This year the BSE experienced a change in the
shareholder structure: three of the shareholders,
Rota Bank, Bay Bank and Continent Bank sold
their shares to Ata Bank, Ilk Bank and Capital
Management.
Legal and physical bodies (banks, investment
funds, broker firms) involved in professional
activities in the securities market, with special
permission (licenses) from the State Committee
for Securities under the auspices of the President
of the Azerbaijan Republic, can become
FUTURE OUTLOOK
In 2003, plans for the BSE are as follows:
to launch a new financial instrument – interbank
repo agreements;
to develop and implement the necessary
software for the addition of new financial
instruments;
process and procedures, as well as potential
problems;
to expand the public relations program and
ultimately increase the awareness of the potential
in the securities market of Azerbaijan. Specifically
the BSE will undertake the following:
to conduct training for brokers and dealers on
interbank repo transactions; 1. to attract specialists from countries with
developed securities markets to conduct high
profile seminars and conferences;
to conduct a review of internal regulations, in
line with the KPMG program which provides
specialists for technical support to the BSE; 2. to disseminate information through mass
media such as TV, radio and newspapers;
to increase the qualifications of the BSE staff by
conducting an IPO simulation addressing the
3. to organize lectures and speaking
engagements for the educational institutions of
Azerbaijan;
4. to hold meetings with the financial directors
of leading enterprises within the country;
5. to organize a group of brokers/members to
cooperate with the BSE in developing greater
liquidity in the corporate securities market; and
6. to propose amendments to regulations
governing professional market participants.