FEDERATION OF EURO-ASIAN STOCK EXCHANGES
ANNUAL REPORT JUNE 2012
BAKU INTERBANK CURRENCY EXCHANGE
Farkhad Amirbekov
General Manager of BBVB
The dynamic growth of the Azerbaijan
economy increases in the credit ratings and
the subsequent arrival of large investors
promote the further development of the
financial infrastructure of the country. Today the
BBVB takes a central role in the infrastructure
of the Azerbaijan capital market, integrating
on a uniform technological platform trading
and settlement systems. I am sure that the
dynamic growth of the Azerbaijan economy and
development of the exchange infrastructure will
promote further growth and the appeal of the
financial market of the country.
In the near future BBVB plans to introduce new
technological ideas, new financial tools and
services for clients. We will continue to work
on perfection of a technological infrastructure
HISTORY AND DEVELOPMENT
Central Bank of Azerbaijan and the four biggest
state banks of Azerbaijan Republic founded
the Baku Interbank Currency Exchange (Baki
Banklarasi Valyuta Birjasi- BBVB) on 26 July
1993 and this year it marks decade from the
moment of the beginning of activity in the
financial market. Becoming from the beginning
of the activity one of the central financial
institutions of the country, BBVB is today for the
business public of Azerbaijan an original symbol
of economic reforms. Using the advanced
information technologies and being based on
successful experience in the creation of the
universal trading platforms, BBVB by volumes
of trades and number of financial tools became
the largest exchange institute in the Caucasian
region.
Main historical dates
18 October 1991 Declaration of Independence
of the Azerbaijan Republic
15 August 1992 Putting in circulation national
currency - Manat
21 June 1993 Establishment of the BBVB
26 August 1994 Beginning of regular exchange
trading in the currency market
31 March 1995 First credit auction of the
National Bank at the BBVB
20 September 1996 First T-bill auction
22 January 1997 First exchange trading in the
BBVB Stock Department
5 May 1997 The beginning of preparation of the
first rating estimations of banks
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I am sure that dynamical growth of the
Azerbaijan economy and development of
an exchange infrastructure will promote
the further growth of appeal of the
financial market of the country.
for the exchange and a control system of risks.
The main objective of exchange innovations is
not only the service of currency transactions
of banks but for us it is very important, that
the exchange market began to play more
significant role in the banking system. Therefore
I especially would like to allocate such projects,
as the start of the market for currency swaps.
The main objective of development of the
exchange currency market consists in the
increase of its appeal in the expansion of
a number of the interconnected tools. We
make plans, proceeding from necessity to
correspond to the world standards both on
technologies and on a spectrum of offered
tools and services. For this purpose all of our
perspective projects are subjected to these
same standards. It is obvious, that creation of a uniform
exchange centre in the region will provide not
only close integration of Azerbaijan into the
world market, but also will give the stability
to the country’s financial system. And here
the importance of the exchange market as
infrastructural element of a financial system
consists in performance of a variety of unique
functions, of which realization by other institutes
either is impossible, or is inconvenient.
I sincerely hope that realization of these plans
will allow us to strengthen our positions,
rendering best practices level service to our
trade participants. This will lead the BBVB to
become a basis for the creation of a world
class regional financial centre.
1 July 1997 Creation of the first exchange site
30 August 1997 Beginning of trading in the
Organized Interbank Currency Market (OICM)
25 September 1997 First trading in the OICM
by means of universal trading e-network of the
BBVB
17 December 1997 Corresponding emerging
market membership status in WFE
6 March 1998 Signing in Baku Protocol on
cooperation of BBVB with Istanbul Stock
Exchange
2 October 1998 Full member of FEAS (Istanbul)
24 February 1999 Membership in the
Azerbaijan Commercial Chamber (Baku)
14 December 1999 Membership in the
Azerbaijan Commercial Banks Association
(Baku)
20 April 2000 Co-founder and membership in
the International Association of CIS Exchanges
(Moscow)
3 July 2001 Signing in Moscow Arrangement
on strategic cooperation of BBVB with MICEX
(Moscow Interbank Currency Exchange)
27 March 2002 Start of e – system of trades
on Interbank credits – the Organized Interbank
Credit Market
8 July 2002 Creation of the commission on
trading limits
9 July 2002 Start of Bourse E – System of
Trades (BEST)
24 November 2003 Signing in Almati
agreement on mutual cooperation of BBVB with
KASE (Kazakhstan Stock Exchange)
16 June 2004 Signing in Baku agreement
on mutual cooperation of BBVB with BSE
(Bulgarian Stock Exchange) 31 August 2004 Registration of index AzeriREI
developed by experts BBVB
16 June 2005 Start of the tool - currency swap
in Bourse E – system of trade (BEST)
1 January 2006 Technical transition of BEST
system for using denominated manat
14 August 2007 Signing in Baku agreement on
mutual cooperation of BBVB with TICEX (Tbilisi
Interbank Currency Exchange)
1 May 2008 Start of the settlement - trading
system of BEST
28 February 2008 Signing in Moldova
agreement on mutual cooperation of BBVB with
MOLDSE (Moldova Stock Exchange)
21 October 2009 Introduction of the new tool in
the Organized Interbank Money Market
FUTURE OUTLOOK 2012
• Development of settlement and clearing
services, in particularly software for
management of banks trading limits on
money and the currency markets;
• Improvement of the risk management
system in realization of clearing operations;
• Further increasing professional skills of
Exchange’s personnel;
• Development of modern corporate
governance principles;
• Development of Internet–technologies and
e–commerce;
• Intensification of activity in organized
interbank money market.