In an interview with Banks.am, Hayk Yeganyan, the CEO of the Armenia Stock Exchange (AMX), spoke about capital market developments in 2025, their impact on the Armenian economy, and cooperation with neighboring countries and European markets.

- Mr. Yeganyan, it’s been a year since our last interview. How would you assess the developments in the Armenian capital market in 2025? What do you consider the year’s main achievement?

- 2025 started on a positive note with issuance volumes increasing. Bond issuers from new sectors have emerged, for example, from the retail sector, which we didn’t have before. The government’s “State Support Program for Issuance and Rating” has played a key role here, through which issuers’ expenses and interests are partially repaid. Now the European Bank for Reconstruction and Development (EBRD) is implementing a similar program to encourage retail issuers. The Armenia Stock Exchange also constantly organizes “road-shows” - a series of presentations, to increase interest in the capital market among potential issuers.

As the biggest achievement of the year, I would like to highlight the signing of a joint agreement with the Abu Dhabi Securities Exchange, which allowed us to integrate the markets into the Tabadul platform (brokers of exchanges that have joined Tabadul have the opportunity to trade with instruments available in other exchanges, - author). This year we achieved significant recognition in the United Arab Emirates. We hope that by the end of the year or early next year, investments from these areas will flow to Armenia.

Another major achievement for the capital market recently was the fact that for the first time in Armenia, Ameriabank modernized its infrastructure and integrated the trading platforms of the Armenia Stock Exchange into its online banking. It is called “Direct Market Access (DMA)”. This is already a significant achievement. This concept has been used globally for about 25 years, but was only introduced in Armenia this year. We are moving forward in small steps.

- How would you rate AMX’s performance in recent years and the results of its strategic moves?

- Attracting Western institutional capital to the financial system of developing countries is considered a crucial task, as this capital reflects the real value of the economy, sets the price for the economy, and contributes to the country’s long-term economic development. A vivid confirmation of this is the fact that even the largest companies in non-Western countries are seeking to list on American stock exchanges to gain access to this valuable long-term capital.

It’s also important to remember that protecting healthy and reasonable interests begins, first and foremost, with protecting one’s own interests. Therefore, attracting investment is not just a short-term transactional phenomenon, but also one that creates long-term security and importance.

The beginning of the last decade was not very favorable and encouraging for the stock exchange and the depository: shareholder exit, transitional period, and attraction of a new valuable shareholder. But today, we can confirm that over the past 10 years, the team has quadrupled in size, reaching 100 employees, and our financial performance has transformed, recording dynamic growth. One of the most important facts is that the largest stock exchange in Eastern Europe has become a shareholder in the company, with over 60% of its trading volume handled by major American investment banks, and the majority by Goldman Sachs. We have begun to establish ties with the second-largest economy in the Middle East and the largest stock exchange operating in that economy.

This year alone, two major depositories opened custody accounts with our depository (KPDW & ADX CSD). We are actually a company linking the most important capital market infrastructures of these two economies. This way we brought our economy even closer to the economies of the West and the Middle East and integrated it with them.

At the same time, starting in 2022, we deprived ourselves of short-term profitable trades by demonstratively rejecting high-risk yet lucrative opportunities, abandoning a short-term transactional mindset, as this could jeopardize the entry of the The Central Securities Depository of Poland (KDPW) into Armenia. 

- How did the Warsaw Stock Exchange decide to become a shareholder of AMX and what impact did it have?

- The Warsaw Stock Exchange has been investigating us since 2019. Their interest in Armenia was further heightened when they visited Armenia at my invitation and became familiar with the local potential. They spent three years studying our company, our performance during the COVID pandemic, the 44-day war, and the first 10 months of the Russia-Ukraine conflict. They were convinced that despite external and internal upheavals we are capable of maintaining stability, continuing development, and advancing institutional market reforms thanks to a clear strategy and a professional team.

WSE became a shareholder of the Armenia Stock Exchange in 2022, when sanctions had tightened and Armenia was considered a medium-to-high-risk country for the outside world. I am certain that without them as shareholders our correspondent accounts could have been closed and our assets would have been at risk. It is through these accounts that we conduct pension fund investments.

Our collaboration with them also resulted in the entry of the Abu Dhabi Stock Exchange, the Central Securities Depository of Kazakhstan (KCSD), and the Central Securities Depository of Kazakhstan (KCSD) into the Armenian capital market. In other words, we were able to attract international partners to our infrastructure and become a reliable partner for them. Reliability also depends on who your shareholder is.

The most important factor in our cooperation with Warsaw is that it is long-term. The Armenia Stock Exchange is not a company focused on short-term transactions. Our mindset is not that of a short-term trader. We strive to invest in the long-term sector in developing infrastructure that will ultimately generate significant returns. It is important to us to create long-term values that will benefit future generations.

- Let’s talk about projects that have already been implemented or will be launched in the near future aimed at developing the market. What are your expectations?

- Here I would like to mention government projects aimed at developing the securities market, which are expected to attract interest also from small and medium-sized enterprises, and issue volumes will increase, at least for corporate bonds. 

At the end of the year, we plan to visit Abu Dhabi together with our investment banks and brokers to organize a “road-show” to introduce investors operating in the UAE to Armenia’s investment opportunities. We need to go and show how much money they can make in a new market. Our capital market needs international exposure, and we are trying to fill in that gap too.

We will do the same in Poland, trying to bring Polish investment services companies to Armenia.

- What is needed to develop cooperation between the Armenian capital market and neighboring countries, as well as European markets?

- To help the public understand the role of the Armenia Stock Exchange, I compare us to an airport. If your country doesn’t have an airport or border checkpoints you cannot have any tourists at all. Imagine we have an airport, but there is no air travel regulation, no law, no flights. We, as a state, a company managing the airport, need to take steps to make sure that flights are operated. In this comparison, airlines and travel agencies are investment banks and securities brokers.

We have built an infrastructure, established ties with other countries, and paved the way for cooperation with other countries. Now we need securities and investment opportunities to be created here, and these are created by investment banks and companies providing investment services. We have to try to develop the sector through joint efforts with the government. There are positive developments in this direction, but they are not enough.

Overall, cooperation in the capital market is a confirmation of the company’s chosen path. Ten years ago, we began building bridges with developed capital markets, which was only possible thanks to cooperation. The results achieved today are the result of many years of work and a mission to build reputation and trust. Take, for example, the composition of the supervisory boards of the Depository and the Securities Exchange. They would never agree to become part of a company that could potentially harm them. The fact that they have joined us bears witness to the fact that we have earned the trust of our partners. Their presence, in turn, has become a crucial indicator for establishing international partnerships.

We also attach great importance to internal cooperation with partners with whom we can create long-term values. A prime example is our partnership with the Union of Banks of Armenia. I also commend our cooperation with government agencies: the ministries of Finance, Economy, and the Central Bank. After all, it is no wonder that cooperation in the capital market is characterized by the formula: 1+1 tends to 3.

- To what extent does the capital market actually influence Armenia’s economy today? What steps need to be taken to make it a key driver of economic growth?

- In fact, it has a very significant impact on the economy, but people are not aware of it. For example, a large volume of government debt in national currency is raised through the Armenia Stock Exchange. The entire volume of state bonds is placed through the Armenia Securities Exchange, since the state attracts borrowed funds through securities. Without the capital market, without regulation, the state would not be able to attract these funds. The capital market has a crucial impact on GDP.

Unfortunately, the capital market does not yet have such a significant influence in the corporate sector, but that is not the only task of AMX. We are an infrastructure company, a link between investors and issuers, and this is not limited to Armenia. We are trying to provide regional investors with the opportunity to invest in international securities through us. In other words, we create infrastructure, a safe environment, adopt sanctions, and hope that with the involvement of investment banks, the real economy will be even more involved in the capital market. For this, the real sector definitely needs advisors - investment banks. Without them, an issuer cannot determine the appropriate bond price or find investors.

Thus, the sector is regulated, the supervisory authority is in place, but investment banks are currently absent from this broader chain in Armenia. Although there has been interest in recent years, new investment companies are entering the market, and human capital is flowing into Armenia, particularly from Russia, the positive impact of which is already noticeable. This, at the very least, has a positive impact on people’s financial literacy, when these companies start communicating with people, explaining and convincing them to withdraw their deposits, bring them in and invest through them.

- There is a belief that the capital market can also become a platform for startup financing. How do you see this trend developing in Armenia?

- They are called crowdfunding platforms, and this trend is also very important. Generally speaking, the Armenia Stock Exchange, which is responsible for organizing the trading of bonds, shares, and investment funds, operates the majority of the capital market in Armenia. The exchange is a regulated platform where investors and issuers operate according to clear rules. However, this should not be limited to large companies.

Crowdfunding platforms where small and newly established companies can raise capital on easier terms by issuing shares or bonds are developing in the world. We also have great potential for such initiatives. It is necessary to digitalize processes through websites and mobile apps, ensuring the connection of investors and startups.

- The legislative and regulatory environment is also crucial for the development of the capital market. What reforms are needed to create greater momentum?

- Proper regulation is a crucial requirement in the financial world. There is a saying: starting a business is like marrying the country’s regulator. If the regulator is good, they will come and invest. Fortunately, in Armenia, that role is fulfilled by the Central Bank of Armenia (CB), which is cooperative, progressive, and open to innovation. Over time, the securities market would benefit from having its own regulator, which could also become part of the CB. For now, what we have is sufficient: the law on market is in force, proposals are taken into account, heard, and cooperation is taking place.

Current investment policy, as well as legislative and regulatory reforms, should facilitate increased activity in the Armenian capital market, which is only possible through the provision of specialized and high-quality investment services. Now is the time for investment service providers to present Armenia’s investment opportunities in a comprehensible and attractive manner.

- Public participation in the capital market remains relatively low in Armenia. What initiatives are being undertaken to increase financial literacy and build public trust?

- Trust is built through knowledge: the more literate the person is, the more in-depth analysis he or she makes, rather than making superficial, emotional decisions. We will soon be implementing the AMX Academy initiative, which will serve as a training platform. The Academy will collaborate with various institutions. We are partnering with the Warsaw Stock Exchange Foundation. They have provided us with high-quality educational materials, which we are adapting for our market. We also work with international associations and certification bodies to ensure that the graduates of our programs receive international certificates.


Active public participation is essential for capital market development. If people lack financial literacy, they will not participate in the market. As participation increases, requirements will gradually become more stringent. We already have a minimum threshold for issuers to prevent unilateral decisions and protect shareholder interests.

- The demand for digital solutions is growing in the world. How do you keep up with global digitalization?

- Actually, have been digital for a long time. We do not have any paper documents confirming ownership rights, all this information is digital. The same applies to securities: they are also created digitally, certificates are not printed. However, there is still considerable room for innovation and further development.

- If we try to imagine the Armenian capital market in five years, what would you like to see as the main outcome and key change in the development of the country’s financial system?

- Hundreds of companies with issued shares, market capitalization of several billion dollars, as well as bonds worth tens of billions of dollars, international investors, and several very good investment banks that will help and support real-sector businesses in issuing bonds.
 
Arpi Jilavyan

Photos: Emin Aristakesyan