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FEDERATION OF EURO-ASIAN STOCK EXCHANGES ANNUAL REPORT APRIL 2011
BAKU STOCK EXCHANGE
In 2010 the Baku Stock Exchange
celebrated its 10th anniversary.
Khayal Abdinov
Chairman
2010 was the iconic year for the Azeri capital
markets and its major driving forces – Baku
Stock Exchange and State Committee for
Securities. Baku Stock Exchange was
established in 2000 and past year it celebrated
its 10th anniversary. We managed to introduce
the new law governing collective investments
schemes which was ratified during the same
year. The ratification of the law effectively
started a new era in the development of the
capital markets of the country. Thus it is not
surprising that the conference the BSE held to
celebrate its 10th anniversary was titled
“Collective investments: global experience and
opportunities”.
The global financial crisis which started in
2008 and continued its development through
‘09 and ‘10 gave to many of us time to
reconsider its priorities and strategies. Baku
Stock Exchange dedicated big portion of 2010
on improving the capital markets knowledge
base among the population and professional
community. For the professional market
participant - brokers, banks, regulators etc. the
stock exchange deployed the “CFA I” type
trainings. As in the previous years, the
management of the BSE continued to focus
on reducing operational and activity-related
risks as well as optimizing the internal
structure of the company. We continue to
modernize and improve our IT capabilities and
expand our listing and product bases.
I would like to take this opportunity to first of all
congratulate the FEAS with the 15th
anniversary and congratulate Mr. Mustafa
Baltaci with his appointment as the new
Secretary General of our federation.
HISTORY AND DEVELOPMENT
As far back as we could track the history of the
ancient people living between the mountain
ranges of Lesser and Greater Caucasus, on
the current territory of modern Azerbaijan, they
have always enjoyed the presence of
international trading and the culture of deal
making was very well accepted and praised in
the area. But anyone visiting Azerbaijan
wouldn’t need to study history to find the proof
of that. It is enough just to visit one of many
bazaars to be a part of the constant deal
making. Once experienced this you will
understand that the favorable geographical
situation of Azerbaijan was not the only reason
why the ancient Silk Way was passing through
the territory of the country.
Given the above, it is not surprising that in the
early days of Azerbaijan’s independence the
pragmatic leader of the country Heydar Aliyev
envisioned the creation of capital markets
infrastructure – modern day’s “marketplace”.
The vital part of this infrastructure was Baku
Stock Exchange which was established in
October 1st 2000 with the help of local and
international financial organization most of
which became the shareholders of the
company. Currently Closed Joint Stock
Company “Baku Stock Exchange” has 19
shareholders.
Milestones in BSE’s history
The Initiative Group for the establishment of the
stock exchange gathered – December 25th
1999
The first BSE’s Shareholders Assembly –
February 15th 2000
State Committee for Securities granted an
exchange license to the BSE – July 21st 2000
The first placement of the short-term
government bonds on the BSE – September
1st 2000
The official opening ceremony of the exchange
– October 1st 2000
Election of the BSE to the Federation of
Eurasian Stock Exchanges – November 2nd
2001
Introduction of first repo to the market –
November 22nd 2001
The first transaction in corporate bonds on the
exchange – January 26th 2004
The first placement of corporate bonds
denominated in foreign currency – March 5th
2004
The first equity trade conducted via the
exchange – April 15th 2004
The placement of the Central Bank’s Notes for
the first time on the BSE – September 14th
2004
Introduction of the interbank repo instrument to
the market – May 24th 2006
The first placement of the mid-term
government bonds on the exchange – March
16th 2009
The placement of the bonds of Azerbaijan
Mortgage Fund on the BSE – June 16th 2009
Introduction of the new trading system with
remote access capabilities for the members –
July 2nd 2009
Effective date for the new listing rules – August
1st 2009
International conference dedicated to the newly
adopted listing rules – September 29th 2009
Starting of the “Capital markets training”
project with the help of EBRD – January 21st
2010
Celebration of 10th anniversary of Baku Stock
Exchange and conducting of an international
conference on “Collective investments: global
experience and opportunities” – September
29th 2010
FUTURE OUTLOOK
As a part of the overall strategy for the
development of BSE and capital markets of
Azerbaijan, in 2011 the exchange will continue
focusing on some of the previous issues as
well as trying to tackle new ones:
• to continue promotion of listing as well as
create new market tools;
• to create internal risk management group;
• influenced by market trends to further
optimize the organizational structure of the
exchange;
• to continue working on creation of fully
automated DVP
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