BBVB

Bourse E- Systems of Trades (BEST) was developed in 2002, BEST – is registered trademark of Baku Interbank Currency Exchange (BBVB).

BEST consists of two sectors of the market: 1. Exchange Currency market (FOREX); 2. Organized interbank money market (MONEY-MARKET). The trading system can be used independently, or it to be component part of Trading-settlement complex. There can be some sectors of the market in the framework of trading system. The sectors of the market differ from each other of a set of financial tools, Users and the various schedule (regulations) of trading sessions. Each of sectors functions independently. After completion of work of the next trading session at exchange currency market BEST carries out clearing and settlement of liabilities and requirements of the trading participants in the proper currencies and makes up cast of information into the settling system, where payments are automatically formed during the given trading session to concluded transactions for the subsequent carrying out of settlements. Clearing and depositary systems are not available.

THE GENERAL DESCRIPTION OF THE BASIC FUNCTIONS OF TRADING SYSTEM

EXCHANGE CURRENCY MARKET (FOREX)

FOREX is intended for the interactive conducting of currency operations in the model of market ORDERS DRIVEN MARKET. At this model of the market Users enter into BEST standard types of requests for purchase-sale foreign currencies. The essence of work of BEST consists of continuous comparisons of again submitted requests with requests from turns with the purpose of concluding transaction without direct participation of the persons, who have submitted the requests and also continuous informing of Users about current status of quotations table and concluded transactions. At input of requests System traces the presence of trading limits at Users.

Users are in a position to unseal all outputs documents, forming by the system and to look over archives information. Users have possibility of construction of the graphs on each financial tools (on requests and transactions). Market and statistical information is formed directly by the system in the form (forms) of suitable for delivery to Subscribers and Mass Media, analytical information is not formed by the system. Users have personal code and possibility to exchange text messages. Only Users of BBVB can be the addresses of messages and the contrary. Users have no the authority to communicate among themselves in the given sector of the market. The messages are visible during trading system, after end of trading system the reports are deleted. The trading system is adapted for use of the electronic digital signature.

ORGANIZED INTERBANK MONEY MARKET (MONEY-MARKET) gives the chance to Users to have operative and complete information about the market of interbank crediting during operative day and possibility to conclude interbank credit transactions directly by the system. Users have possibility to unseal credit agreements within concluding transactions, but in case of the conclusion of transactions on the security of securities and also mortgage transactions, which are automatically formed by the system at the conclusion of transactions. Users have personal code and right to be exchanged text messages. Besides, Users have possibility to unseal all output documents, forming by the system and look over the archive information. Market and statistical information is formed directly by the system in the form (forms) of suitable for delivery to Subscribers and Mass Media, analytical information is not formed by the system.

TRADED FINANCIAL TOOLS

Exchange currency market (FOREX)

The trade is carrying out by means of the following financial tools:

1. USD /AZN TOD
2. USD /AZN TOM
3. USD /AZN SPT
4. SWAP_USD/AZN_TOD_TOM
5. SWAP_USD/AZN_TOD_SPT
6. SWAP_USD/AZN_TOM_SPT
7. SWAP_USD/AZN_TOD_1 WEEK
8. SWAP_USD/AZN_TOD_2 WEEK
9. SWAP_USD/AZN_ TOD_1 MONTH
10. SWAP_EUR/AZN_TOD_1 WEEK
11. SWAP_EUR/AZN_TOD_1 MONTH
12. ЕUR/AZN TOD
13. EUR/AZN TOM
14. RUR/AZN TOD
15. RUR/AZN TOM

Organized interbank money market (MONEY-MARKET)

This market is non-exchange, i.e. settlements on concluded transactions in the system are carrying out among participants directly without participation of BBVB.

Trading is carrying out by the mean of the following financial tools:

Attraction and placing of credit resources at the national currency (AZN);
Attraction and placing of credit resources in USD;
Attraction and placing of credit resources in EUR;
Attraction and placing of credit resources in RUR.

METHODS OF TRADES

FOREX works by method of ORDERS DRIVEN MARKET (market on requires). The sense of this method consists in continuous comparison of again submitted requires with the requires from turns (the requires of Users are anonymous), with the purpose to conclude transactions without direct participation of the persons, giving requests, and also continuous informing of Users about current status of quotations table and concluded transactions.

MONEY-MARKET works on a model “market on quotations”.

In this model of the market Users work with two basic objects: requests (percent rates) and transactions. Requests are not the basis of for the conclusion of transactions, but serve only as information for other Users.

At input of requests there is no automatic conclusion of transactions. The transactions are entered into the System independently and for their fixing the statement of both parties is necessary. The transaction is considered concluded (fixed) in the System only when both parties agreed with its terms. During trading session each User has possibility to see requires of all Users together with the information about who put a request into the system.

  For connection to the BEST from remote workplaces banks should sign below-mentioned contracts with an exchange: the licenced Agreement, the trading and-or information contract, the contract on maintenance of services. At signing of the licenced Agreement banks also fill and represent on an exchange the order about the quantity of terminals demanded to banks (trading and-or information). Cost of terminals is specified in the table "TARIFFS FOR USE of the BEST SOFTWARE". After receiving of the above-stated documents and on the basis of bank's demands, experts of the BBVB spend installation of the BEST software.

TARIFFS FOR USE of the BEST SOFTWARE

№ The Title Tariffs

1. Annual cost of the licence for the right of trade for each Terminal 360 AZN

2. Cost of licence for terminals of having the right supervision on the basis of requests:

2.1. Month cost for one Terminal 30 AZN

2.2. Month cost for two Terminals with equal times of activity 45 AZN

2.3. Month cost for three Terminals with equal times of activity 55 AZN

3. Annual cost of a key of the EDS 60 AZN