According to the results of the monitoring of the formation of legislative framework for developed and emerging financial markets held in June 2016, the Bank for International Settlements (BIS) assigned the highest rating to the Russian financial market infrastructure (FMI). Russia’s FMI received the 4th level rating (highest possible) alongside with FMIs of Germany, France, Great Britain, Hong Kong, Singapore, etc.
The BIS monitoring includes a thorough analysis of the legislative framework for the Russian CSD’s, repositories’, and central counterparties’ operations, allowing the national market to observe the CPMI-IOSCO Principles for Financial Market Infrastructures.
The highest rating assigned by the BIS reflected the qualitative changes in the Russian FMI that have occurred within recent years and had a positive impact on the market’s transparency and reliability in the global context. The BIS highlighted the legislative and regulatory innovations that allowed implementing the best international practices in managing the central securities depository of the Russian Federation, in particular, strict corporate governance principles, the role of customer committees in the CSD development, and newest risk management and business continuity standards. Moreover, the BIS commended positive changes associated with the introduction of the repository service perceived as crucial by the global financial community assessing the quality of the national FMI.
Eddie Astanin, Chairman of the Executive Board, NSD, commenting on the highest rating assigned to the Russian FMI, emphasized: “The BIS rating is an official recognition of the changes that made it possible to develop the world-class financial market infrastructure in Russia. Our team in close collaboration with the Bank of Russia is actively engaged in a process of elaboration of the legislative and regulatory framework for the market development. We are particularly pleased that our positive efforts to develop repository operations allowing to form the largest systemically important repository on the basis of NSD were recognized.”
The Bank for International Settlements (BIS) is an international financial organization and an official forum of central banks. It is headquartered in Basel, Switzerland. The BIS was established in 1930 by the central banks of England, Belgium, Germany, Italy, France, Japan, and a group of U.S. commercial banks to settle the question of reparation payments to the World War I victor countries imposed on Germany. 60 central banks, including the Bank of Russia, are currently shareholders of the BIS.