NASDAQ OMX Armenia’s and Central Depository of Armenia’s supervisory boards have approved the high-level strategy and development plan for 2018-2020.
As the companies seek to utilize business opportunities and strengthen their positions within local and regional capital markets, the team has developed a new strategy and initiated a reorganization to support the implementation of the key initiatives for the next three years.
“We will be striving to identify new business opportunities both locally and internationally that can create economic value for and within Armenia. At the same time, we are trying to position our core competitive advantages in a right appealing way to attract more business opportunities and generate more revenue for our companies,” commented Hayk Yeganyan, CEO at NASDAQ OMX Armenia.
The strategy aligns with the changing geopolitical, financial and technological enhancement environment. It focuses on NASDAQ OMX Armenia’s plans to start a set of activities that include among many others:
• Replacing entirely the old trading technology with a modern one, which can provide direct connectivity to our exchange both for local retail and international traders.
• Introducing a new crowdfunding platform that will enable startups to raise equity and debt capital via our services, while at the same time providing assurance and comfort to investors regarding the legal existence of the companies and confirmation of transaction and settlement.
• Introducing Alternative Investment Market of Armenia (AIMA), where the issuers of securities can directly sell their bonds and other securities to retail investors, with guaranteed settlement at the depository level.
• Generating cross-listing opportunities with European and Eurasian exchanges, bridging the two regions and using new business opportunities which have risen due to current geopolitical situation.
• Introducing new anonymous OTC FX marketplace.
• Building a multicurrency B2B unsecured credit trading platform for major companies, enabling trades on their own accounts.
• Introducing FundNet, a fund registration platform, allowing local and international fund managers to set up multicurrency Armenian investment funds and benefit from a favorable legal regulations of Armenian jurisdiction.
• Developing and introducing an electronic voting (e-voting) service at the depository for the ease of general shareholder meetings.
• Implementing mobile/online applications for using depository services.
• Launching affordable corporate services and solutions both for potential issuers and trading members to assist them with their entry to the exchange. The services will not be limited to locals only, but will be further extended to international clientele.
“Partnering with Clearstream Bank Luxembourg, Raiffasen Bank and Russia’s National Settlement Depository and others, we make Armenian securities accessible to over 50 markets. Now we aim to revive the international relations by introducing new approaches, solutions and technologies, as well as help local issuers improve the reputation and quality of the securities they issue. We are now developing an e-voting system that will enable investors to efficiently participate in companies’ governance wherever they are. This will significantly improve the corporate governance, which will in its turn directly impact their reputation,” said Vahan Stepanyan, CEO at Central Depository of Armenia.
The NASDAQ OMX Armenia strategy includes a range of other activities that all aim to promote the development of the Armenian capital market.
“Apart from international and regional business opportunities, we believe, it is the sustainable development and realization of the domestic market that will drive the strategic growth of our business. The new strategy has been launched in a favorable period because it’s noticeable that now Armenia’s business sector is more likely to show willingness to work transparently. This will make companies’ entry into the stock exchange easier creating opportunities for attracting relatively cheap and long-term money,” said Hayk Yeganyan, CEO at NASDAQ OMX Armenia.
Hayk Yeganyan believes these processes will positively affect citizens too because investing in financial instruments will allow them to earn more income than bank deposits offer, enabling them to have direct impact on the domestic economy.
NASDAQ OMX Armenia relies also on the investment banking service providers without whose professional intermediary activities it will be very difficult to develop the market.
“We strive to attract also non-resident investment companies to Armenia and I can say that so far we have witnessed much interest in entering the Armenian market from both EU and EEU investment companies. I hope along with the upgrade of the trading technology we will see some foreign companies participating in Armenia’s capital market,” he added.
The companies have very challenging three years ahead. The team have already accomplished one of the major milestones for achieving their main goals, by building and developing further a multi-cultural and multilingual team with diverse geographical backgrounds at the same time appreciating the existing know how and knowledge of many fellow employees. Even more, the company has successfully attracted new employees from the diaspora.