EAEU countries begin creating unified exchange space - EEC

MINSK. Feb 13 (Interfax) - The heads of government of the Eurasian Economic Union (EAEU) have signed an agreement on cross-border access to the placement and trading of securities on organized exchanges within the EAEU, the Eurasian Economic Commission (EEC)'s press service said.

"This marks an important step towards creating a unified exchange space within the union. The agreement is intended to ensure the freedom of issuance and trading operations with securities (stocks and bonds), create conditions for increasing market liquidity and strengthen cooperation on trade and investment," the press service said.

"The agreement aims to ensure cross-border access to securities, harmonize procedures for the mutual recognition of their issuances, and facilitate their listing on exchanges within EAEU states. A distinctive feature of cross-border access for securities is that issuers from one EAEU country can place and trade their securities on the organized exchanges of another member state, including through parallel (simultaneous) listings on multiple exchanges," EEC Economy and Financial Policy Minister Bakhyt Sultanov was quoted as saying by the press service.

The possibility of cross-border access will be granted under certain conditions. First, the issuance of securities must be registered according to the laws of the country where the issuer is registered. The securities must also be listed in the highest category of the issuer's domestic exchange. Only securities that meet the strictest exchange requirements for placement and trading on organized markets are included in the highest-tier listing.

The agreement lays the foundation for forming a common organized securities market, Sultanov said. The mutual recognition of securities issuances will also increase liquidity on EAEU exchanges. The placement of securities registered by an authorized body will follow a single specification on any participating exchange, significantly reducing regulatory costs for registering an issuance and reporting on it.

"The implementation of this agreement will enable the free movement of capital, increase investment activity, expand securities trading and foster the development of financial markets across the union," Sultanov said.

The signed agreement has been sent to EAEU member states for the necessary domestic procedures required for it to enter into force.