The Bank of Russia proposes to organize proposals dealers OTC market

© RIA Novosti / Natalia to Seliverstova in photobacteria the Central Bank of Russia on Neglinnaya street in Moscow. Archival photoThe Bank of Russia proposes to organize proposals dealers OTC market© RIA Novosti / Natalia to Seliverstova the image Bank

The Bank of Russia intends to expand the definition of dealer activities, to organize proposals of dealers in the OTC stock and derivatives markets and to enter these sectors, licensing, told journalists the Director of Department of securities market and the commodity market of the Central Bank Larisa selyutina. These proposals do not relate to currency and commodity markets.

«Dealer activities are limited at present, buying and selling securities on the basis of public solid quotes that were formulated 20 years ago. The definition of dealer activities should be expanded. It is planned to introduce criteria of professional activity: types of transactions (on the basis of a public offer is a solid public prices) and professional nature of the transactions (on a regular systematic basis with unspecified persons using the software and information networks),» she said.

To reduce the risks
«The key issue is the criteria based on which transactions for your account will apply to the licensed activities. Unregulated activities of dealers can carry for the citizens of the quite tangible risks of losing money,» said she.

As explained selyutina is currently actively developing direction associated with the offer of massive financial products, using information technologies: these may be online shopping of stock, other platforms remote use platforms for transactions with securities. Widespread in the OTC market offers investors with financial leverage: derivative financial instruments, as well as transactions in which no delivery of the underlying asset, and the economic result depends on the price of this asset, she added.

The report, tabled for discussion by the professional community, discusses issues of access to organized trading activities of market makers and others. Following discussions with market participants, the regulator will form a concept of improvement of the regulation of dealer activities.

Foreign companies are now able to offer these unlicensed products, such as CFF (contract for fifference – contract for difference – ed.), RS (rolling spot contract allows you to close a position at the end of the day, or carry it the next day – ed.) products, said Deputy Director of the Department of securities market and commodity market Olga Shishlyannikova.

«The mechanism that we propose, will force Russian companies, if they offer such types of products, obtain a license and automatically turns on the principle that all legal activity in the territory of the Russian Federation by Russian legal entities», — she added.