OREANDA-NEWS. October 01, 2009. The State Securities Committee of Azerbaijan is planning two-stage introduction of online securities trading system.

Committee’s chairperson Rufat Aslanli says that the first stage of strategy – bringing of available softwares in compliance with their principles is under development.

“For more effective trading system we need to introduce single trading system, but not the one consisting of integrated systems as at primary stage. We think that out visit to Luxembourg at the end of October and the second country not selected yet will give an opportunity for choice of model for such system,” Aslanli said.

At stage of integrated trading system Azerbaijan, in order to increase confidence to the market, will begin online trading with T+0 transaction, in particular from performance within one day to diminish default risks.

“At deep markets estimates on securities are usually carried out in online regime on several models stipulating completion of operations for period of up to three days (T+3). These models are applied in those markets where there is liquidity of both papers and money. When brokers open positions, they can have not papers in availability, but for two or three days they buy them from markets and implement commitments. For that it is needed to obtain high current liquidity at the market,” Aslanli considers.

The Committee already has concept of this system.

At the end of October the SSC plans some visits to a couple of countries (the first will be Luxembourg and the second is still under selection) where it found the most advanced models of such integrated system. Then it will endorse the final model to be applied in Azerbaijan.

Nevertheless, works on single stock trading system have been launched.

“It was started mutual integration of separate elements of trade system – systems of updated software of the Baku Stock Exchange and the National Depository Centre introduced in mid-2009. New software allows the market participants to have remote access to systems of the BSE and the NDC.

Currently we are developing special software component for integration of these systems that originally did not envisage interface between them.

Without integration of trading systems at the BSE and depository in the NDC it is impossible to obtain sound opportunities of online trading,” Aslanli said.

Relevant negotiations with software-developers are under way.

“We hope that technical issues can be solved by us in the next few months. We’ve already started discussion with the Central Bank to ensure interface of system of securities trading and payment system that will allow transfer of trading from paper to electronic format and cut time of information processing and deal conclusion,” Aslanli said.