New rules for dealers

From January 2015 dealer activities in the securities market in Azerbaijan will be under the new rules. Dealers prescribed clear regulations to comply with the many risk factors for the placement and use of funds.

Since the coming year the total capital of the dealers cannot fall below 100 000 manat. The total capital requirement will be determined by the dealer at the rate calculated claims against various risk parameters. In addition, according to the head of one of the brokerage firms, which also serves as the dealer, they will have to hire at least two qualified personnel in compliance with the new requirements of the structure.

Dealer may act as a market maker for corporate securities in the stock market. The dealer can take over the function of the underwriter of the issuer's total or partial placement of securities of the issuer.

In the implementation of dealer operations, the company must take into account the risks of financial losses, depending on the market situation, price volatility, the concentration of capital groups, customers, etc.

Currently licensed dealers are 13 companies.

Existing rules for dealing activities were adopted in August 2013. New rules were included in the register of regulations on July 15 this year. --08B--

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