In an interview with Banks.am, Ani Makaryan, Chief Executive Officerof the Central Depository of Armenia, spoke about the institution’s decision to become a client of Euroclear Bank, the new opportunities for integrating with international markets, as well as reviewed the developments of 2025 and outlined strategic priorities for the coming year.

- What does it mean for the Central Depository of Armenia to become a client of Euroclear Bank? How does this benefit the Armenian capital market?

- Euroclear Bank is an international central securities depository that safeguards assets worth more than 40 trillion euros and counts major institutions such as JP Morgan among its shareholders. Only a few such depositories exist worldwide, and they form the backbone of global financial market infrastructure. Becoming its client is a mark of distinction, a proof that the Armenian market and its infrastructure, in this case the Depository, meet high standards. It provides global visibility and recognition.

It is particularly noteworthy that Euroclear Bank’s access is currently closed for our region. In our case, the presence of a European shareholder – Warsaw Stock Exchange (GPW) – played a decisive role.

Even before joining Euroclear, we already had access to global markets through our long-standing relationship with Clearstream (an international central securities depository, ed.), where we have been a client for about ten years. Through Clearstream, we have provided Armenian investors with access to international markets and facilitated the entry of foreign investors into Armenia. Becoming a client of Euroclear Bank expands these opportunities even further, offering broader access to international securities transactions and custody services.

Our cooperation with Euroclear Bank will progress through several stages. The first significant milestone was obtaining client status, which reaffirmed that our regulatory framework, risk-mitigation policies, technological capabilities, and operational processes align with high international standards. The next step is opening mutual accounts. In the near future, we plan to open an account with Euroclear Bank, giving Armenian investors expanded access to global markets. This partnership will also enhance the overall quality of our services by incorporating the expertise and standards of a major international institution.

- How did the connection process unfold? What were the main stages and technical requirements you had to meet?

- The entire process took about two years. Euroclear Bank conducted a comprehensive assessment of all aspects of the Central Depository’s operations: the group’s structure, shareholder composition, risk management framework, including policies for combating and managing AML/CFT (anti–money laundering and combating financing of terrorism) risks, sanctions compliance, overall compliance procedures, and technological capabilities, including our information security policy.

The technological integration has not yet been completed, but this stage is not expected to pose major challenges, as both institutions are already connected to global communication systems. From a technical standpoint, our infrastructure fully supports cooperation with partners that operate under very high international standards.

- What new opportunities for integration with European and international markets does this step open up for both investors and Armenian financial institutions?

- Euroclear Bank serves more than 90 markets worldwide. Its group includes several national central securities depositories – Euroclear Finland, Euroclear Netherlands, Euroclear Sweden, Euroclear Belgium, as well as CREST (the UK and Ireland securities settlement system, ed.). Euroclear Bank serves as the issuing central depository for securities from these jurisdictions, which means these instruments will now become accessible to Armenian investors.

- Can we expect this step to encourage foreign investors to enter the Armenian market?  If so, how?

- Opening an account with Euroclear Bank may become the next stage of our cooperation, though it is still too early to talk about it. At the same time, such a partnership would give local issuers, including the state and the Central Bank of Armenia, the opportunity to attract international investors through this channel. A similar opportunity already exists via Clearstream, but Clearstream currently serves only the government bond market. We are making great efforts to enable access to local corporate securities as well.

This cooperation will signal to international investors that our market operates in line with global standards, allowing them to invest in Armenia with the same level of confidence they have in developed markets. 

- Please describe the main functions that the Central Depository performs in the Armenian financial market today.

- The Central Depository serves as the centralized registrar and custodian of securities in Armenia. It conducts the final settlement of stock exchange transactions, handles over-the-counter (OTC) operations with local securities, and administers corporate actions such as coupon payments, share distributions, and dividend payments.

Another key responsibility is servicing the Mandatory Funded Pension System. The Depository acts as the registrar of participants in the mandatory funded pension system, maintains citizens’ funded pension accounts, and administers their units.

The Central Depository is also responsible for the custody of pension fund assets. For instance, pension fund managers such as C-Quadrat Ampega and AMUNDI-ACBA ASSET MANAGEMENT can use Euroclear Bank’s services through us to invest in foreign securities.

- We regularly hear about the Central Depository’s goal of becoming a regional hub. How do you assess Armenia’s position in the region?

- Several important factors support our position. First, the feedback we receive from clients who also work with other regional depositories highlights the high quality and efficiency of our services. A major part of this success is the strong specialization and expertise of our team. These elements form a solid foundation for building a competitive advantage within the region.

In 2025, we implemented several initiatives that position us as a regional hub. We connected to the Abu Dhabi Capital Market and its Tabadul platform, which enables us to integrate with all markets that will join that platform. In parallel, we introduced the mechanism of remote membership in the Armenian market.

Another significant competitive advantage is the presence of the Warsaw Stock Exchange among our shareholders. Having such an international partner is crucial for establishing broader relationships and connections with global markets. 

Another important source of momentum is the interest from international investors who wish to access other regional markets through us, for example, the market of Uzbekistan. To meet this demand, we must strengthen not only our links with global markets and international central securities depositories, but also our cooperation with regional depositories as part of the broader market infrastructure.

In essence, we cannot limit ourselves to servicing only the Armenian market. One of our strategic goals is to build bridges between markets across different regions, ultimately positioning ourselves as a regional international depository.

- What kind of cutting-edge technologies or digital solutions is the Depository introducing?

- From the perspective of both retail clients and institutional partners, I would highlight the solutions offered through the CDA Online application. One of our main goals is to provide the most comprehensive set of services via this platform, thereby enhancing the experience for retail clients as well.

I would also like to emphasize that our core software system, which handles securities transactions, is developed in Estonia. This system has been successfully used by Nasdaq and fully complies with international standards.

Overall, our digital solutions are designed to provide foreign partners with a seamless and reliable way to connect with us, which also strengthens our competitive position.

Additionally, we plan to implement securities payments directly through the Depository.

- How would you assess the year 2025 for the Central Depository? What were the key achievements?

- 2025 was a successful year for the Depository, marked by significant progress in international integration and the enhancement of service quality. In addition to the achievements already mentioned, I would like to highlight our cooperation with the The Central Securities Depository of Poland, which focused on two key areas: capital markets integration and the provision of LEI (Legal Entity Identifier) codes for identifying legal entities.

Through this partnership, we obtained agent status for providing LEI codes, allowing us to continue serving local legal entities.

- What impact did these programs have on market development and investor confidence?

- As I mentioned, our role is to provide a high-quality infrastructure with maximum connectivity and opportunities. However, infrastructure alone is not enough to develop the local capital market. From a development perspective, it is essential to continuously modernize capital market regulations, enhance the capabilities and services of intermediaries such as banks and investment companies, and offer incentive programs for both investors and issuers. The development of the capital market requires the involvement of all stakeholders.

- What will be the Central Depository’s main strategic directions for development in 2026?

- We will continue to follow the path of institutional development that defines our role as a market infrastructure. This includes implementing global best practices, such as the creation of a central agent, which will help remove barriers and make the Armenian market more attractive to investors.

Another key strategic direction is the expansion of our activities in the crypto-asset sector. Overall, our focus will remain on measures that enhance the accessibility of the Armenian capital market for foreign investors.

- What is needed to boost foreign investor activity, both at the state and infrastructure levels?

- It is essential to provide foreign investors with access to the full range of the market, including corporate securities. Achieving this will require a number of legislative adjustments.

On the domestic front, it may be necessary to review existing laws to ensure that the potential of the real sector of our economy is reflected in the securities it issues. In practice, attracting foreign investors requires having a “product” that genuinely interests them.

Beyond local securities, it is also important to consider the Central Depository’s role as an intermediary to facilitate access to other markets, particularly those that lack a fully developed infrastructure.

- And finally, Ms. Makaryan, what motivates you to continue implementing such systematic and complex projects, while maintaining a work/life balance?

- Actually, I’m not sure if that balance is maintained or not, perhaps my family would have a better answer (laughs, ed.). But what truly inspires me is the work itself, especially when it involves significant projects. I think my previous experience helps me in this regard. I worked at the Central Bank for many years and was involved in quite important reforms. It is very meaningful to me to implement large-scale projects that have a lasting impact and deliver long-term benefits to our country.

Arpi Jilavyan

Photos by Emin Aristakesyan