YEREVAN, May 20. /ARKA/. The Central Depository of Armenia (CDA) has introduced a new international business model of depository operations.
The reform aims primarily at improving services to issuers and securities holders, as well as to increase efficiency of execution and protection of their rights.
The reform has brought the depository operations in Armenia into line with the best international standards, CDa’s director Vahan Stepanyan said at the official launch ceremony Saturday.
The development of the model started in 2009 when the respective international experience and Armenia’s needs were studied. The model most suitable for Armenia was selected in 2011, Stepanyan said.
Within the new model, CDA will ensure centralized registry keeping, securities custody as well as clearing and settlement of stock exchange transactions through specialized software and enhanced hardware and security facilities. Registry keeping and securities custody services will be provided to customers via account operators – investment companies and banks, which signed the relevant agreement with the CDA.
Such mediation of services will contribute to increased access of issuers and investors to the depository services across Armenia, more efficient risk management and supervision, higher customer service and increased competition among account operators in offering comprehensive packages of corporate and investment banking services to customers.
Stepanyan said the depository system reform required joint effort of CDA’s staff, their colleagues from NASDAQ OMX and the Central Bank of Armenia.
Similar system of depository operations exists in Estonia, some African and Caribbean countries.
NASDAQ OMX Armenia (former Armenian Stock Exchange, Armex), was established in 2001 as a voluntary merger of 21 broker (dealer) companies. In November 2007 the stock exchange was reorganized into OJSC. OMX (current NASDAQ OMX) is a holder of 100% stock of NASDAQ OMX Armenia.
The stock exchange obtained 100% stock of Armenia’s Central Depository. NASDAQ OMX Armenia received a trade license from CBA on November 7, 2005. The trades on the stock exchange were officially launched on 15 November 2005. ($1=411.33drams). –0–
