JUNE 2013 - FEAS

FEDERATION OF EURO-ASIAN STOCK EXCHANGES ANNUAL REPORT JUNE 2013NATIONAL DEPOSITORY CENTER OF AZERBAIJANBakhtiyar AzizovChief Executive OfficeFrom this standpoint 2012 was verysignificant and fruitful. As per the resultsof 2012, the amount of assets stored by theNDC has exceeded AZN 6 billion.We are living in truly momentous times markedby extraordinarily significative processes goingon in the world’s financial system. Underthe influence of the most severe economicalcrisis for the last 60 years, we are evidencingthe constitution of the new global financialarchitecture and rules of play within it.While global liquidity shortage and economicdownturn have entered into its new phase,the economic growth dynamics in Azerbaijanwas not affected to the extent it was inanother countries, which was achieved bypurposeful and balanced reforms and promptcountercyclical measures undertaken by theAzerbaijani government, conservative foreignborrowing policy, maintaining stability of thenational currency and mitigating dependencyupon foreign financial markets. The NationalDepository Centre (the NDC) plays a distinctiveand irreplaceable role in preventing importationof the global economic crisis consequencesand in ensuring investors’ high trust andconfidence in the country’s stock market. Atthe initial stage of our development the primarygoal of the organization was to support theprivatization of the state-owned property,whereas our today’s mission has significantlyextended and includes the transformation of thecountry’s securities market infrastructure and itstransition into important functional institution.From this standpoint 2012 was very significantand fruitful. As per the results of 2012, theamount of assets stored by the NDC hasexceeded AZN 6 billion. Also, in order toincrease the quality of provided services NDCexpanded the range of electronic services.Within the framework of the institutionaldevelopment program of capital markets thecontinuous discussions have been conductedwith international organizations and expertsin order to strengthen the NDC’s positionas a centralized and reliable depository ofgovernment and corporate stocks and currentlynew projects are under development. TheTwinning project “Approximation of the legaland regulatory framework for the securitiesmarket of Azerbaijan according to the EuropeanUnion acquis and capacity building for theState Committee for Securities” and “CapitalMarket Modernization Project” were launchedin 2012. No doubt that accomplishing theseprojects will expand the NDC’s horizons.Operational results 2012NDC finished 2012 with an operating profit. 30new contracts with issuers were signed and asa result additional AZN 1 537 000 were involvedin depository. Informartion on 216 contracts withissuers was updated. 4285 transaction with totalvalue AZN 457, 8 mln were registered.225 new issues with total value AZN 889 mlnwere registered on primary market.NDC recorded a profit of AZN 196 649 in 2012with income AZN 1 694 509 and expences 1 497860 (Operational expenses - 1 431 034, incometax expenses - 66 826)Future outlookNowadays the current condition of the stockmarket demands infrastructural and systematicadvancement of the Depository. Havingexamined the contemporary challengescoming from the today’s stock market andanalyzed internal capabilities, the NDC hasworked out a strategic vision and prepared theitemized action plan for the depository systemconversion. The strategic vision of the NDCaims to achieve the following objectives:• Becoming a central institutional body• Applying advanced international standardson securities transactions• Applying standards on corporategovernance• Developing of internal recoursesCONTACT INFORMATIONContact Name Rasim Mammadov E-mail rasim.mammadov@mdm.az Website www.mdm.azAddress 19, Bul-Bul Avenue, Baku AZ1000 AzerbaijanPAGE 94