Bank for International Settlements said Russian market infrastructure is top-rated
Russia’s financial markets infrastructure is as good as those of the UK, Germany, Hong Kong and Singapore, according to the bank for International Settlements, marking a crucial endorsement for Moscow as it tries to establish itself as a global financial centre.
The Bank for International Settlements (BIS) monitored the formation of the framework for financial markets in June and assigned the 4th level, the highest rating, to the Russian financial market infrastructure.
The monitoring included analysis of the legislative framework for central securities depositories, repositories and central counterparties operations under the Iosco principles for financial market infrastructure. Other countries that received the highest rating included Germany, France, UK, Hong Kong and Singapore.
According to the National Settlement Depository (NSD), Russia’s central securities depository, Russian market infrastructure has tightened its corporate governance principles, risk management and business continuity standards.
"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 recognised," Eddie Astanin, chairman of the executive board of the NSD.
In March, the St. Petersburg International Mercantile Exchange (Spimex) told FOW that its plan to launch a futures contract based on Russia’s Urals crude oil standard in the second half of this year is backed by the Russian state. The plan has been personally backed by President Vladimir Putin.
The Moscow Exchange, Russia’s largest derivatives market, reported that its total trading volume for June increased 20.3% compared to the same period last year, to RUB70.2tn (£829bn). The exchange's derivatives market rose last month 42.6% year-on-year.