As a part of its continuous strategy on international cooperation and development, Baku Stock Exchange applied for membership at the World Federation of Exchanges (WFE) with ultimate goal representing the capital markets of Azerbaijan in the international arena, as well as learning the best experience from the participants of the leading stock markets. By the decision of WFE’s Board of Directors dating to January 15th, 2020, Baku Stock Exchange has been officially granted the status of an affiliate exchange. As a result, the Baku Stock Exchange has become the first stock exchange in the local region to initiate formal collaboration with WFE.
Formal partnership with WFE creates new opportunities for Baku Stock Exchange in many prospects, especially in regards to improving Azerbaijan’s position on an international level. Coordinating with such a reputable organization will allow BSE to disclose its trade volumes in multinational information sources, thus contributing to the “Market Capitalization in GDP” in Global Competitiveness Report and enhancing Azerbaijan’s position “Protecting Minority Investors” indicator in Doing Business Report. As a result, these opportunities will divert the attention of foreign investors to Azerbaijan’s economy and financial markets, as well as further increase investment opportunities in the local capital markets.
Established in 1961, WFE is the largest organization comprised of member exchanges (e.g. stock, currency, commodity and universal) that are major players in the global financial market infrastructure. The total market capitalization of WFE’s member exchanges is $ 74.4 trillion with annual market turnover exceeding $ 95 trillion. Additionally, WFE’s member exchanges regularly conduct joint research and discussions to determine the best practices and benchmark standards for the development of the capital markets. As of today, WFE’s database on exchanges serves as the main source for most international financial institutions and reputable rating agencies.