Derivative financial instruments to be available in Armenia in 2017

25.10.2016 17:36
Derivative financial instruments to be available in Armenia in 2017

YEREVAN, October 25. /ARKA/. Armenia’s parliament has approved today in the first reading a package of amendments to the law "On the Securities Market" and to a package of laws regulating the financial market.

Deputy chairman of the Central Bank Nerses Yeritsyan said the amendments are designed to help develop the market of derivative financial instruments such as futures, forwards, options, swaps and repos.

He said the main purpose of the changes is to introduce these global standards in Armenia, which will allow Armenian market subjects to conclude international agreements and enter the international market of derivatives.

In his words, this will help develop Armenia’s capital market and allow businesses to curb potential risks, as well as have a positive impact on the economy.

He also noted that swaps, futures, forwards and other derivatives allow to insure transactions against currency fluctuations.  He said these tools will help avoid possible risks, as the one triggered by the depreciation of the Russia currency in 2014.

He said derivative tools will become available from 2017 as an opportunity to stimulate the export market, ensure certain investment stability and reduce the export risks.

He noted that Armenian banks are ready to serve international futures and forward contract. The deputy head of the Central Bank also noted that the Central Bank intends to create a registry for transactions with derivatives.

The derivatives market in Armenia is represented only by repurchase agreements and swap deals in very small volumes. Thus, according to the National Statistical Service, at the end of 2015 the volume of repo transactions made by persons providing investment services amounted to 1 431.4 billion drams. At that no repo deals were concluded as NASDAQ OMX Armenia stock exchange. -0-


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