NASDAQ OMX Armenia concerned over lack of forex transactions at stock exchange
15.03.2016,
13:19
Konstantin Saroyan, head of NASDAQ OMX Armenia stock exchange, in an interview with ARKA News Agency, voiced concern over the lack of foreign exchange transactions at the stock exchange.
YEREVAN, March 15. /ARKA/. Konstantin Saroyan, head of NASDAQ OMX Armenia stock exchange, in an interview with ARKA News Agency, voiced concern over the lack of foreign exchange transactions at the stock exchange.
“Transactions with foreign currencies are one of the key sources of the stock exchange’s profits, and therefore we are deeply concerned about the considerable decline we faced in 2015 and the lack of transactions this year,” he said.
In his words, the fall in forex transactions at NASDAQ OMX Armenia was due to the unidirectional demand for foreign currencies. For example, banks’ demand is mostly satisfied by the central bank by means of interventions. That is why banks don’t have to make inter-bank transactions, and this leads to contraction of such transactions.
Saroyan said that today banks prefer to make forex transactions over the counter, not at the stock exchange.
Such over-the-counter deals are made out of the stock exchange and out of the regulated market – they are effected directly between two parties, particularly banks.
“These transactions are registered nowhere, but this is not shadow economy – this is merely less transparent conditions for making deals,” Saroyan said. “Any way, these transactions go through the central bank’s mutual settlement system.”
NASDAQ OMX Armenia, he said, is planning to introduce a new trading mechanism. In his words, this mechanism implies a new technological platform for performing transactions and mutual settlement.
Saroyan said that today transactions at the stock exchange are effected only through preliminary depositing.
”We are planning to launch a regime for effecting transactions in T+N (transactions with deferred execution) or without initial depositing,” the head of NASDAQ OMX Armenia said in his interview. “Participants will also get an opportunity to make transactions without mutual settlement. In this case, mutual settlement will be carried out via systems which are convenient to financial institutions, for example through the central bank’s systems.”
Saroyan said that efforts are being made now not only to restructure the market, but also to provide room to financial institutions for making their forex transactions via the stock exchange.
The total amount of transactions with US dollars at NASDAQ OMX Armenia shrank 58% in 2015 to $312.5 million.
Some 2,036 dollar transactions were effected here in 2015 against 4,696 in 2014. Not a single transaction has been made at the stock exchange over two months. Only on March 11, one deal amounting to $100,000 was made at NASDAQ OMX Armenia after two months of stagnation. ---0----
“Transactions with foreign currencies are one of the key sources of the stock exchange’s profits, and therefore we are deeply concerned about the considerable decline we faced in 2015 and the lack of transactions this year,” he said.
In his words, the fall in forex transactions at NASDAQ OMX Armenia was due to the unidirectional demand for foreign currencies. For example, banks’ demand is mostly satisfied by the central bank by means of interventions. That is why banks don’t have to make inter-bank transactions, and this leads to contraction of such transactions.
Saroyan said that today banks prefer to make forex transactions over the counter, not at the stock exchange.
Such over-the-counter deals are made out of the stock exchange and out of the regulated market – they are effected directly between two parties, particularly banks.
“These transactions are registered nowhere, but this is not shadow economy – this is merely less transparent conditions for making deals,” Saroyan said. “Any way, these transactions go through the central bank’s mutual settlement system.”
NASDAQ OMX Armenia, he said, is planning to introduce a new trading mechanism. In his words, this mechanism implies a new technological platform for performing transactions and mutual settlement.
Saroyan said that today transactions at the stock exchange are effected only through preliminary depositing.
”We are planning to launch a regime for effecting transactions in T+N (transactions with deferred execution) or without initial depositing,” the head of NASDAQ OMX Armenia said in his interview. “Participants will also get an opportunity to make transactions without mutual settlement. In this case, mutual settlement will be carried out via systems which are convenient to financial institutions, for example through the central bank’s systems.”
Saroyan said that efforts are being made now not only to restructure the market, but also to provide room to financial institutions for making their forex transactions via the stock exchange.
The total amount of transactions with US dollars at NASDAQ OMX Armenia shrank 58% in 2015 to $312.5 million.
Some 2,036 dollar transactions were effected here in 2015 against 4,696 in 2014. Not a single transaction has been made at the stock exchange over two months. Only on March 11, one deal amounting to $100,000 was made at NASDAQ OMX Armenia after two months of stagnation. ---0----
