YEREVAN, June 4. /ARKA/. The Armenia Securities Exchange (AMX) and the Central Depository have introduced a Remote Membership model, which is aimed at providing access to foreign investors to the Armenia Securities Exchange, the press service of the exchange reported.
The status of a remote market participant allows foreign brokers to participate in government bonds and foreign exchange trading without registering a resident company in Armenia.
This change is an important and strategic step for the Armenian capital market, as it opens another window for foreign companies, stimulating the inflow of international capital to Armenia and increasing the visibility and accessibility of our market to the global investment community. With Remote Membership, foreign brokers can participate in government bonds and foreign exchange trading directly from their home country, with full initial deposit.
The status of a remote participant can be obtained by those foreign brokers who meet the requirements set out in the rules of the exchange “Membership and Market Participation”. In particular, if the given investment company is registered in a state with whose regulatory and/or supervisory authority in the field of the securities market the Central Bank of Armenia cooperates on the basis of a memorandum or a similar document. If the broker operates in a foreign state other than the country of its registration, cooperation with the regulatory authority of this country is also required. It is also considered that cooperation takes place if the regulatory authority of the country’s securities market has joined the IOSCO multilateral memorandum of understanding. More detailed information on the rule can be found in the Rule of the exchange “On Membership and Market Participation”. The remote membership model was first applied within the framework of joining the Tabadul hub, launched on May 30. For the first time, Armenia Securities Exchange, by introducing the remote membership model and the Tabadul platform, has provided foreign brokerage companies and investors with access to government bonds in the AMXTrader trading system and the FX market platform.
As part of the implementation of the Tabadul platform, Al Ramz Investment Company, located in Abu Dhabi, became the first remote member of Armenia Securities Exchange and received the status of a remote participant, joining the Armenian government bond market and the FX market platform without registering a company in Armenia.
“We have created a simplified access to the Armenian securities market that meets international standards. This initiative is a breakthrough in terms of international integration of the capital market and stimulation of investment flows. The remote membership model allows international brokers to enter our market in a simple, transparent and effective way, increasing the attractiveness of Armenia as an investment destination,” said Hayk Yeganyan, CEO of AMX. According to Ani Makaryan, Director of the Central Depository of Armenia, the participation of reputable foreign brokers in the regulated market of Armenia as part of this change will bring a new culture and a new business standard to the capital market ecosystem of Armenia.
The new opportunity introduced will significantly transform the investment environment, especially for brokers. It allows foreign brokers to expand their activities in the capital market of Armenia, avoiding unnecessary operational costs and the complexities of legal registration.
AMX is confident that the remote membership model will not only strengthen the position of the capital market of Armenia in the region, but will also increase the investment rating and attractiveness of the country on international financial platforms.
About the Armenia Securities Exchange and the Central Depository
The Armenia Securities Exchange is the only operator of the regulated securities market operating in the country. AMX offers a full range of exchange services – listing, trading, clearing and information services, as well as alternative exchange solutions. Final settlements for exchange transactions are carried out by the Central Depository of Armenia, 100% of whose shares belong to the Armenia Securities Exchange. AMX’s mission is to develop the capital market exchange infrastructure, turning it into an active instrument for financing the development of the Armenian economy.
