The Baku Stock Exchange (BSE) ( az, Bakı Fond Birjası) is the main

stock exchange A stock exchange, securities exchange, or bourse is an exchange where stockbrokers and traders can buy and sell securities, such as shares of stock, bonds and other financial instruments. Stock exchanges may also provide facilities for th ...

Azerbaijan Azerbaijan (, ; az, Azərbaycan ), officially the Republic of Azerbaijan, , also sometimes officially called the Azerbaijan Republic is a transcontinental country located at the boundary of Eastern Europe and Western Asia. It is a part of th ...

. BSE is organized in the form of a

closed joint stock company A joint-stock company is a business entity in which shares of the company's stock can be bought and sold by shareholders. Each shareholder owns company stock in proportion, evidenced by their shares (certificates of ownership). Shareholders a ...

with 19

shareholder A shareholder (in the United States often referred to as stockholder) of a corporation is an individual or legal entity (such as another corporation, a body politic, a trust or partnership) that is registered by the corporation as the legal own ...

Activity

Baku Stock Exchange trades short-term

treasury bond United States Treasury securities, also called Treasuries or Treasurys, are government bond, government debt instruments issued by the United States Department of the Treasury to finance government spending as an alternative to taxation. Sin ...

common stock Common stock is a form of corporate equity ownership, a type of security. The terms voting share and ordinary share are also used frequently outside of the United States. They are known as equity shares or ordinary shares in the UK and other Com ...

s (primarily from former state-owned enterprises that have been privatized, including food and beverage, construction, and banking companies), and foreign currency

futures Futures may mean: Finance *Futures contract, a tradable financial derivatives contract *Futures exchange, a financial market where futures contracts are traded * ''Futures'' (magazine), an American finance magazine Music * ''Futures'' (album), a ...

. BSE carries out trading corporate securities. Trading, on primary and secondary markets of government

securities A security is a tradable financial asset. The term commonly refers to any form of financial instrument, but its legal definition varies by jurisdiction. In some countries and languages people commonly use the term "security" to refer to any for ...

(

T-bills United States Treasury securities, also called Treasuries or Treasurys, are government debt instruments issued by the United States Department of the Treasury to finance government spending as an alternative to taxation. Since 2012, U.S. gov ...

of the Ministry of Finance of Azerbaijan and

banknotes A banknote—also called a bill (North American English), paper money, or simply a note—is a type of negotiable instrument, negotiable promissory note, made by a bank or other licensed authority, payable to the bearer on demand. Banknotes w ...

of the

Central Bank of Azerbaijan The Central Bank of Azerbaijan (CBA, az, Azərbaycan Mərkəzi Bankı) is the central bank of Azerbaijan Republic. The headquarters of the bank is located in the capital city Baku. The National Bank of the Republic of Azerbaijan was establishe ...

) are carried out solely at BSE. The state regulatory authority for the stock exchange and the Azerbaijani

securities market Security market is a component of the wider financial market where securities can be bought and sold between subjects of the economy, on the basis of demand and supply. Security markets encompasses stock markets, bond markets and derivatives mar ...

is th
Financial Markets Supervisor Authority
BSE's activity is regulated by the following legislative acts and documents: * The Civil Code of Azerbaijan * The normative-legal acts of th
State Committee for Securities of Azerbaijan
* The internal rules of BSE

History

Initiative group for establishment of the Stock Exchange was organized on 25 December 1999. Baku Stock Exchange began its operations on February 15. The first trading operation at the stock exchange was carried out on September 1, 2000. Corporate bonds started to be traded on BSE in January 2004. The first equity trade on Baku Stock Exchange was carried out in April 2004.

Central Bank A central bank, reserve bank, or monetary authority is an institution that manages the currency and monetary policy of a country or monetary union, and oversees their commercial banking system. In contrast to a commercial bank, a central ba ...

began to trade its Notes on Baku Stock Exchange on September 14, 2004. Azerbaijan Mortgage Fund started to trade its bonds on BSE in June 2009. Market maker institution of BSE was established in January 2013. Derivative financial instruments started to be traded on BSE in March 2014. BSE introduced Centralized Trade Platform – CETA in February 2016.

SOCAR The State Oil Company of Azerbaijan Republic ( az, Azərbaycan Respublikası Dövlət Neft Şirkəti), largely known as SOCAR is fully state-owned national oil and gas company headquartered in Baku, Azerbaijan. The company produces oil and na ...

bonds began to be traded on BSE in October 2016.

Management

The current head of the board of directors of BSE is Eldar Abdullayev. The supervisory board is headed by Yashar Mammadov.

Organizational structure

Organizational chart of Baku Stock Exchange (BSE)

Bell events

Opening and closing bells on the BSE symbolize the beginning and end of each trading day of securities. As trading transactions are carried out electronically, bell ringing ceremonies are only used to keep the tradition. These ceremonies are conducted to highlight important events regarding the stock market, as well as to bring attention to social affairs. The first bell event was organized on February 17, 2006 on BSE to introduce CETA (Centralised Exchange Trading in Azerbaijan) in the framework of the project “Modernization of Capital Markets”. Another event was conducted on March 9, 2017 with the attendance of BSE in “Ring the Bell for Gender Equality” initiative to raise the awareness of gender equality organized by

UN Women The United Nations Entity for Gender Equality and the Empowerment of Women, also known as UN Women, is a United Nations entity working for gender equality and the empowerment of women. UN Women advocates for the rights of women and girls, and focu ...

, IFC,

Sustainable Stock Exchanges Initiative The Sustainable Stock Exchanges (SSE) initiative promoting corporate investment in sustainable development. It is a project of the United Nations (UN) co-organized by the United Nations Conference on Trade and Development (UNCTAD), the United N ...

, Women in ETFs and

World Federation of Exchanges The World Federation of Exchanges (WFE), formerly the ''Federation Internationale des Bourses de Valeurs'' (FIBV), or International Federation of Stock Exchanges, is the trade association of publicly regulated stock, futures, and options exchang ...

Trading hours

The exchange's normal trading sessions are from 10:00 a.m. till 1:00 p.m. and from 2:15 p.m. till 4:00 p.m. (local time,

UTC+4 UTC+04:00 is an identifier for a time offset from UTC of +04:00. In ISO 8601, the associated time would be written as 2019-02-07T23:28:34+04:00. This time is used in: As standard time (year-round) ''Principal cities: Abu Dhabi, Dubai, Baku, ...

) from Monday till Friday. The exchange is closed for the following days: Saturday, Sunday and official non-working day declared by the Government for public holidays.

References

External links

Official site

Financial Markets Supervisor Authority
Stock exchanges in Europe Stock exchanges in Asia Economy of Azerbaijan Economy of Baku Financial services companies established in 2000 2000 establishments in Azerbaijan Financial regulatory authorities of Azerbaijan {{Azerbaijan-struct-stub