News

27 Feb 2020

For the first tine, repo transactions were carried out through stocks on the Baku Stock Exchange

“Bakı Fond Birjası”nda ilk dəfə səhmlərlə repo əqdləri bağlanılıb

Today for the first time repo transactions were carried out through stocks in the trading platform of “Baku Stock Exchange” CJSC (BSE).

According to Fins.az, it is mentioned in the announcement of BSE.

It is also said in the information that repo transactions were carrie out on the stocks belonging two issuers through “AzFinance Investment Company” CJSC.

“Stocks are being actively used in the short – term fund attractions by the participants of capital markets. So far the subject of repo transactions has been mainly state and corporate bonds. Generally, significant increase in repo transactions has been observed in recent years. So, in 2018 the amount of repo transactions in the stock exchange was 612 million manat, while in 2019, turnover increased 83% and exceeded 1.1 billion manat” – it is mentioned in the information.

We would like to remind that  repo transaction – is the sale (purchase) of investment securities that are the repo subject with the obligation to repurchase (sell) on pre-determined terms and conditions. Repo transactions provide short-term borrowing opportunities for investors. Market participants can meet their short-term financial needs by concluding repo deals on the trading platform of the stock exchange.

At present, it is possible to carry out repo transactions with 23 instruments on the Stock Exchange. The list of securities which are the repo subject can be found through the following link.

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AzFinance / News / For the first tine, repo transactions were carried out through stocks on the Baku Stock Exchange