On November 21 of this year, the Ministry of Finance held a regular round table on organizing the first auction trade for primary dealers on state securities with the participation of the Central Bank of the Republic of Uzbekistan, the currency exchange of the Republic of Uzbekistan and 9 commercial banks.

For reference: within the framework of the II International Economic Forum, held on November 3-4, 2022, the Ministry of Finance of the Republic of Uzbekistan, the Central Bank of the Republic of Uzbekistan and 9 commercial banks for the first time signed an agreement “primary dealer” based on international standards. These banks are: National Bank of Uzbekistan, Ipoteka bank, Xalq bank, Sanoat qurilish bank, Qishloq qurilish bank, Asaka bank, Aziya Alyans bank, Ipak Yo‘li bank and Turon bank.

During the round table, issues related to the thorough improvement of the first auction trade on the DQQ were discussed. In particular, tasks were set to adjust the relevant technical parameters on the electronic platform of the foreign exchange exchange of the Republic of Uzbekistan, where the auction trade of DQQ was held.

Issues such as the obligations of primary dealers, the conditions of financial incentives, the involvement of international traders with foreign experience in auction trading, and the establishment of market-forming functions of primary dealers were also discussed.

In particular, for primary dealers, the Ministry of Finance established specific obligations to support secondary market liquidity and the domestic money market through the minimum purchase amounts of dqq, which will be placed in the primary market, as well as active participation in transactions related to government securities, including repo transactions.

Primary dealers should use the funds they receive from financial incentives only for the purpose, that is, in the organizational structure of the bank, the establishment of an eco-system - investment banking services, research and sales departments that are constantly engaged in DQQ, and a department with extensive experience in this field was determined to be allocated to the costs of attracting foreign traders.

At the same time, to attract foreign investors to Uzbekistan, the necessary measures to integrate with the international depository “Clearstream” and attract “Raiffeisen Bank International” to Uzbekistan as a custodian bank are being implemented. was read.

The presence of primary dealers in the DQQ market is the basis for the formation of the profitability curve in the primary and secondary market, the attraction of foreign investors to the local market, and the further development of the capital market.

Source: Ministry of Finance of the Republic of Uzbekistan