about indicative rates forming of attraction and placing of credits at the money market
1. Indicative rates of attraction and placing of credits at the money market BakIBOR (Baku Interbank Offered Rate) and BakIBID (Baku Interbank Bid Rate) are counted up by Baku Interbank Currency Exchange (further BBVB) on the basis of rates of credit attraction and placing, declared by the leading banks-operators (further market-makers) of Azerbaijan money market.
2. Names of indicative rates of credit attraction and placing at the money market, and also method of forming and settling of indicative rates of BakIBOR and BakIBID are created and confirmed by the working group, created within the framework of the Agreement “About information exchange and market-making at the money market”. Name, the information center, method of forming and settling of indicative rates BakIBOR and BakIBID can be changed only by the decision of Working group.
3. The list of banks declaring the rates is confirmed by the Working group. All additions and changes in the list of banks are considered at the meetings of Working group and confirmed in the proper order.
4. Rights and duties of BBVB and market makers are stipulated on indicative rates forming in the Agreement signed by both sides “About informative exchange and market-making at the money market”.
5. Credit rates, declared by market makers for forming of indicative rates BakiIBOR and BakIBID are exceptionally indicative information. Their publication does not lie on declared rates banks of any duties on conclusion of concrete transactions at the money market. At the same time declared rates should reflect real level of percent rates on which market makers are ready to give or to borrow credits to the other banks-participants of the money market at the moment of declaration of the quotations.
6. If any bank for any reasons stops to meet requirements of given position BBVB can submit for consideration of Working group an offer about exception it from number banks declaring rates for forming of indicative rates. In case of taken decision by Working group about substitution one or several banks, participating in forming of indicative rates BakIBOR and BakIBID not later than a month up to coming decision into force BBVB is notifies in writing form the bank about stopping of its participation in forming of indicative rates. BBVB informs a market about the made replacement through mass media. Thus, demands given new banks-participants for forming indicative rates start to be taken into account of BakIBOR and BakIBID not earlier than the day following the last day of rates account, given by the replaced bank.
7. Every bank has right to suspend rates announcement without assigning any reasons with writing notification on accepted decision of BBVB and Working group not later than a month prior to suspending rates announcement. In case of suspending by any bank rates announcement the Working group makes decision about bank replacement on basis of offers brought by BBVB not later than a month prior to suspending by bank quotations announcement. BBVB informs the market about made replacement through mass media. In case of replacement of bank-participant rates given by new bank-participant start to be taken into account of BakIBOR and BakIBID not earlier than the day following the last day of rates account, given by the bank, which suspended rates announcement.
8. Market makers declare rates on which they could place or involve means at the money market not later than 10 hours 30 minutes of Baku time of every working day. The working day (by a bank day) is calendar day, except established by legislation of Azerbaijan Republic day-offs and holidays, and also day-offs carried over on the working days by corresponding legal acts. Banks should declare their credit rates without any exiles on rates, declared by other banks.
9. Indicative rates BakIBOR and BakIBID settle account on the basis banks rates declared by trade system of BBVB under credits without means given in AZN and USD on the following terms of crediting:
1 day (overnight) 30 days 2 days 90 days 7 days 180 days 14 days 360 days
Terms of crediting, since terms of 7 days and further are counted off from date “today”.
10. The lowest and the highest are cut off from rates given off the banks at settling for each period. From the remaining the average arithmetical meaning is computed, which is published as indicative rates of BakIBOR and BakIBID. Indexes are not settled accounts BBVB, in case if at the moment of settling less than 5 banks present rates.
11. The rate size is underlined in annual percentage exactly to within two decimal signs after a comma.
12. Information center on distribution of indicative rates BakIBOR and BakIBID is Information-Analytical Department of BBVB, which publishes average rates on Internet-site of exchange not later than 11:00 by Baku time of every working day.
13. BBVB is daily obligated to expose in free access information about indicative rates BakIBOR and BakIBID, including information about given each of bank-participants rates and also about changes in structure of banks-participants on Internet-site of BBVB and in mass media.
