On October 15, 2025, the Baku Stock Exchange successfully conducted bond trading for the first time based on the clean price principle.

This approach, aligned with international market practices, was first applied during the European Bank for Reconstruction and Development (EBRD) bond trading, marking an important milestone for Azerbaijan’s capital market. Previously, bonds in Azerbaijan were traded using the dirty price method, where the accrued interest was included in the quoted price. This meant that the bond’s price reflected both its market value and the interest accumulated to date.

Under the newly implemented clean price principle, bond pricing is based solely on the market value, excluding any accrued interest. The interest income is calculated separately and displayed independently during trading.

The introduction of this principle signifies a step toward international standards and provides several key benefits:

• Enhanced transparency in price formation
• Greater accuracy in comparison and analysis for investors
• Closer alignment of the local market with global practices

This initiative demonstrates the commitment of Baku Stock Exchange to modernizing market infrastructure, strengthening price transparency, and harmonizing trading mechanisms with international standards — an important step toward further development and integration of Azerbaijan’s capital market.