ArmInfo.The Eurasian Development Bank (EDB) will provide funds to the Armenia Securities Exchange OJSC for software and technological modernization on a non-refundable basis. According to the signed agreement, the EDB plans to finance the main part of the costs associated with the introduction of a new exchange trading system and technical re-equipment of AMX.
According to the bank's press release, the new trading system, in addition to providing modern technological solutions for organizing exchange trading in accordance with international standards, will allow any investor to perform exchange transactions in real time, gaining direct access to the exchange's trading platforms through brokerage companies. This opportunity is an indicator of the quality and attractiveness of modern exchange services.
Stressing the importance of the program implemented with the support of the EDB, Hayk Yeganyan, CEO at AMX, noted: "Technological modernization is a priority for Armenia Securities Exchange, since one of the prerequisites for its success is the availability of exchange trading for a wide range of traders. We highly appreciate the support of the EDB in the development of the capital market in Armenia. The introduction of the new trading system will contribute to an increase in the number of exchange participants, quoted securities and trading volume, as well as expand the horizons of exchange services provided, which will generally increase the interest of companies in listing and issuing securities, since securities admitted to exchange trading will become available to a wide range of investors, including those outside Armenia. These factors will certainly contribute to the further improvement of the main financial indicators of the exchange."
Armen Melkikyan, EDB Director in the Republic of Armenia, emphasizing the integration significance of the program, noted: "Technological modernization of the Armenian Stock Exchange will allow successfully integrating its infrastructure with the financial markets of the countries of the Eurasian Economic Union, contributing to the growth of investments in the capital market and an increase in trade."
To note, the Armenian Stock Exchange (AMX) is the only existing stock exchange in the territory of Armenia, which is also the only shareholder of the Central Securities Depository of Armenia. Until 2017, the exchange was owned by NASDAQ, which acquired it from the Central Bank of the Republic of Armenia through an investment program for the development of the stock market. However, in 2017, NASDAQ abandoned this project due to lack of prospect. Back in the late 2000s, the software for the exchange was purchased from the Moscow Exchange (MICEX) with a grant from USAID. The activity of the Armenian Stock Exchange today is extremely low due to serious structural problems of the economy. The only really working platform on the stock exchange is the platform for trading government bonds.
