Nasdaq: Modernisation of Uzbekistan’s Stock Exchange Can Transform the Investment Climate

The recent meeting between the President of Uzbekistan Shavkat Mirziyoyev and Adena Friedman, Chief Executive Officer of Nasdaq, opened up new opportunities for the development of the national stock market. The sides discussed potential areas of cooperation aimed at modernising the Tashkent Stock Exchange and aligning it with international best practices.Kursiv Uzbekistan spoke with Dmitry Zelentsov, Director for Sales and Solutions at Nasdaq, about the specific steps awaiting the market and the experience the exchange intends to bring to the country.

— What key areas of modernisation of the Tashkent Stock Exchange do you consider priorities in terms of international standards?

— In my opinion, the modernisation of the Tashkent Stock Exchange should begin with the technological renewal of its trading, clearing, and supervisory infrastructure. First of all, it is important to introduce modern cloud or hybrid solutions that will ensure scalability, resilience, and a high level of availability for market participants. A significant direction is also the transition to a modular architecture with open software interfaces, which will greatly simplify the integration of participants and external providers.

An equally important task will be the launch of a real-time market surveillance system capable of detecting market abuses and anomalies. It is also necessary to integrate the Uzbek market with international depositories and clearing organisations to facilitate access for foreign investors and make operations more transparent and standardised.

Additional attention should be paid to transparency and information disclosure. Modern exchange platforms provide both API access and interfaces for retail and institutional investors. Improving the quality of data disclosure significantly increases trust in the market. Alongside this, it is necessary to develop mechanisms for the protection of investors’ rights, raise the level of corporate governance, and create conditions for the emergence of new financial instruments.

—  Which aspects of Nasdaq’s experience will be most in demand during the renewal of Uzbekistan’s stock market infrastructure?

— Nasdaq has extensive international experience in modernising exchange infrastructure, including the technical transformation of more than 130 markets and exchanges around the world. The most relevant developments for Uzbekistan are our advancements in migrating to cloud platforms with a high degree of reliability and flexibility. We apply a phased approach to implementation, which allows operational risks to be minimised during the transformation process.

The latest technological platform, Nasdaq Eqlipse, which we are offering, combines trading systems, clearing, depository accounting, settlements, supervision, data management and analytics into a single ecosystem. This creates a stable and flexible foundation for further development. We also employ modern solutions in the field of market surveillance, risk management, and real-time analytics.

Our experience of cooperation with regulators and exchanges in Southeast Asia, the Middle East, Europe and North America confirms that such an approach makes it possible to create not only a technologically advanced but also a highly transparent and attractive market environment.

— Which technological solutions are planned to be implemented first?

— Among the first steps, we are considering the introduction of a modern trading system capable of processing a large number of orders in real time and providing high reliability. At the same time, a risk management and settlement system will be deployed, allowing obligations to be controlled and settlements between participants to be carried out automatically.

The introduction of a trading supervision system is of great importance, as it will allow the regulator and market operator to identify suspicious actions promptly and prevent manipulation. Another important direction will be the creation of an information disclosure portal and an API-access platform for market data, which is especially important for improving transparency and investor confidence.

In addition, attention will be paid to security systems, including digital identification, data protection, and access control. All these solutions are aimed at forming a modern, flexible, and secure infrastructure that can be scaled as the market grows.

— What barriers currently hinder the development of Uzbekistan’s securities market, and how can they be overcome?

— At the current stage, several factors are hindering the development of Uzbekistan’s securities market. Firstly, this is relatively low liquidity and a limited number of active participants. To overcome this barrier, it is necessary to stimulate the listing of new issuers, including privatised state assets, and to develop mechanisms for attracting both institutional and retail investors.

Secondly, there remains technological fragmentation, where trading, clearing, and depository processes are separated and require manual intervention. The solution to this problem will be the transition to a unified digital platform covering the entire transaction cycle.

It is also worth noting the insufficient transparency in information disclosure and the weak protection of minority shareholders’ rights. Raising corporate governance standards, standardising reporting, and developing electronic disclosure systems will help to change the situation significantly.

For foreign investors, the barriers remain currency and operational risks, as well as limited access to local infrastructure. The creation of secure and convenient channels for interaction with international depository and settlement systems will help eliminate these obstacles.

An equally important barrier is the limited number of qualified market participants. Here, we see the need for training programmes, specialist certification, and the development of the fintech ecosystem. Taken together, all these measures can bring the market to a new level of maturity.

— How can the modernisation of the exchange affect the interests of foreign investors and the participation of local companies?

— The modernisation of the Tashkent Stock Exchange will have a direct positive impact on both international and local participants. For foreign investors, the modernisation increases trust in the market through transparent trading processes, reliable infrastructure, and compliance with international regulatory standards. Simplified connection through standard protocols and integration with global financial intermediaries make the market more accessible.

Confidence in capital protection, the presence of supervision, and adherence to fair trading principles also increase. These are important conditions for large institutional players. For local companies, the renewed exchange infrastructure opens new opportunities for raising capital, simplifies the listing process, and enhances clarity and transparency.

Growth in liquidity and the number of participants creates a more dynamic market environment that benefits both businesses and investors. This stimulates the development of the corporate sector, strengthens companies’ business reputation, and expands sources of financing.

This way, the modernisation of the exchange becomes not merely a technological project but a fundamental reform capable of transforming the entire investment climate in the country.