# Baku Stock Exchange

The Baku Stock Exchange (BSE) (Azerbaijani: Bakı Fond Birjası) is the only stock exchange operating in Azerbaijan. BSE is organized in the form of a closed joint stock company with 20 shareholders.

## Activity

The Baku Stock Exchange trades short-term treasury bonds, common stocks (primarily from former state-owned enterprises that have been privatized, including food and beverage, construction, and banking companies)
BSE carries out trading corporate securities. Trading, on primary and secondary markets of government securities (T-bills of the Ministry of Finance of Azerbaijan and banknotes of the Central Bank of Azerbaijan) are carried out solely at BSE. The state regulatory authority for the stock exchange and the Azerbaijani securities market is the Central Bank of Azerbaijan.
BSE's activity is regulated by the following legislative acts and documents:
* The Civil Code of Azerbaijan
* The normative-legal acts of the State Committee for Securities of Azerbaijan
* The internal rules of BSE

## History

The origins of capital market trading in Azerbaijan date back to 1886 with the establishment of Baku Exchange. By 1909, the issuance of bonds for the Sholar Water Line marked a significant milestone, followed by the first issuance of shares in 1913. However, in 1930, the operations of Baku Exchange were suspended.
In 1997, Baku Stock Exchange was founded, ushering in a modern era for Azerbaijan’s capital markets. Trading officially began on September 1, 2000, and quickly expanded to include corporate bonds, shares, and Central Bank’s notes in 2004.
The BSE achieved several key advancements over the years:
* 2006: Introduction of interbank REPO operations
* 2009: Trading of mortgage bonds commenced
* 2013: Creation of the first market maker institute
* 2016: Launch of SOCAR bonds and the CETA platform, a centralized trading system
* 2018: First securities issue by a non-financial sector company
The BSE enhanced its international presence and influence:
* 2019: Became a member of the International Stock Exchange Association and hosted the first domestic currency bond issue by a foreign issuer
* 2020: Partnered with the World Federation of Exchanges and joined the United Nations’ Sustainable Stock Exchanges İnitiative group
Innovative Growth
* 2021: Launched the Investment Travel series in Azerbaijan’s regions
* 2022: Introduced the Securities Issuance System in collaboration with the Central Bank of Azerbaijan
* 2023: Achieved significant tax exemptions for income generated through publicly traded securities
Corporate bonds started to be traded on BSE in January 2004. The first equity trade on the Baku Stock Exchange was carried out in April 2004. Central Bank began to trade its Notes on the Baku Stock Exchange on September 14, 2004. Azerbaijan Mortgage Fund started to trade its bonds on BSE in June 2009. Market maker institution of BSE was established in January 2013. Derivative financial instruments started to be traded on BSE in March 2014. Electronic trading system (BETP), which is the core for trading and post-trading processes. This system is characterized by a high degree of integration and was developed by Montran in 2023 as part of the “Capital Market Modernization of the Republic of Azerbaijan” program.

## Management

The current head of the board of directors of BSE is Ruslan Khalilov. The supervisory board is headed by Farid Akhundov.

### Organizational structure
## Bell events

Opening and closing bells on the BSE symbolize the beginning and end of each trading day of securities. As trading transactions are carried out electronically, bell-ringing ceremonies are only used to keep the tradition. These ceremonies are conducted to highlight important events regarding the stock market, as well as to bring attention to social affairs.
Another event was conducted on March 9, 2017, with the attendance of BSE in “Ring the Bell for Gender Equality” initiative to raise the awareness of gender equality organized by UN Women, IFC, Sustainable Stock Exchanges Initiative, Women in ETFs and World Federation of Exchanges.

## Trading hours

The exchange's normal trading sessions are from 10:00 a.m. until 1:00 p.m. and from 2:00 p.m. until 4:30 p.m. (local time, UTC+4) from Monday until Friday. The exchange is closed for the following days: Saturday, Sunday and official non-working day declared by the Government for public holidays.