"Joint Agreement on Clearing and Settlement of Securities and Derivatives" was signed
On May 27, 2019, the Financial Market Supervisory Authority of the Republic of Azerbaijan (FIMSA) organized an event on “Improvement of Azerbaijani capital market infrastructure: development perspectives”. During the event, the National Depository Center of the Republic of Azerbaijan (NDC), Azer Turk Bank OJSC, PASHA Bank OJSC, Xalq Bank OJSC and Yapı Kredi Bank Azerbaijan CJSC concluded a “joint agreement on clearing and settlement of securities and derivatives”. The agreement envisages the application of the Settlement Agent for Securities Clearing and Settlement Model, which will enable the commercial banks to make cash settlements on the securities market, as well as the settlement regimes to be optimized, which in turn will help better manage the market’s liquidity.
Furthermore, FIMSA and “Raiffeisen Bank International” (RBI) signed a memorandum of understanding on improvement of the capital market, depository and clearing and settlement transactions at the event. It was also stated that in order to attract foreign investors it is intended to open nominee accounts between NDC and RBI.