NASDAQ OMX Armenia improving services for securities market players

01.12.2009 09:57
NASDAQ OMX Armenia improving services for securities market players

YEREVAN, November 30. /ARKA/. NASDAQ OMX Armenia Stock Exchange intends to give additional deposition room for foreign exchange corporate securities market players, Armen Melikyan, director general of the stock exchange, said Wednesday in an interview with ARKA News Agency.

The stock exchange will give brokers permission to add two other depositions to one preliminary and another extra depositions over one auction.

They will be allowed to deposit three times per session - at 11:30, 13:00 and 14:30.

Besides, they will be permitted to unblock their assets five times a day – at 11:30, 12:30, 14:00, 14:30 and 15:05 – instead of three times before.

The director general said that the funds from the two final unblocking deals will be sent to the lending market and used by players there.

“This will spur the credit market. Besides, sessions here are longer than those of forex market. This will give room for siphoning this money off to the lending market for further usage,” he said in his interview.

What for deposition mechanism on corporate securities market, auction sessions here are held from 11:00 to 15:00, and deposition is possible only at 11:30 and 13:00.

“Very often those players depositing money face cash or securities shortage after concluding deals,” Melikyan said. “Depending on the situation, we give them room to deposit additional funds and unblock them at 11:30 and 13:00 for more effective asset management.”

Now a broker will have the money from sold stocks on its account at 11:30 or 14:00, not only at 16:00 as before.

“There is such a demand on the market, and we upgrade effectiveness of auctions and improve services by introducing additional deposition,” Melikyan said. “This makes the system more flexible.”

The director general also said that the mechanism of post-auction session will be introduced as well.

This mechanism is already working on the foreign exchange. It means that auction participants have a right to conclude transactions within five minutes after 15:00 at the average prices formed over a trading day.

Melikyan is convinced that this will spur the market.

“The stet securities market depends heavily on primary depositions, and very often brokers need post-auction sessions, since not all of them manage to make relevant sale or purchase decisions. As a result, some of them drop out of the market. That is why we give five minutes after auctions to them for concluding deals at average prices,” he said.

NASDAQ OMX Armenia (Armenian Stock Exchange OJSC until January 27,2009) was founded in 2001 as a self-regulating organization, a voluntary association of 21 brokerage companies.

Early in November 2007, the stock exchange was transformed to an OJSC. On January 7, 2008, OMX (at present NASDAQ OMX) became sole owner of NASDAQ OMX Armenia and of the Central Depository of Armenia.-0--

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