Baku Stock Exchange prepares to launch new instrument

By Trend

A working group consisting of representatives and members of the Baku Stock Exchange (BSE) has been set up for a project to introduce trade in futures - derivative financial instruments - on the exchange's trading floor, Trend reports referring to BSE.

Futures trading will help market participants who trade in foreign currency manage and minimize currency risks by hedging them.

Given the priority of reducing risks in the implementation of operations in foreign currency, the exchange believes that these futures will be widely sought after by investors and special banks. This can also be an additional source of income for investors, according to the BSE.

In turn, interest in new instruments will lead to an increase in liquidity in the course of trading on the exchange and a more effective determination of market prices.

The Financial Market Supervisory Authority (FIMSA) also supports the activities of the working group.