Securities Market and Commodity Market Department
The Securities Market and Commodity Market Department of the Bank of Russia regulates and supervises the activity of professional securities market participants, including brokers, dealers, forex dealers, trustees, investment advisers, registrars, depositories, and the activity of domestic financial market infrastructure providers, including exchanges, clearing houses, the central depository, settlement depositories, and commodity supply operators. The Department also controls the activity of self-regulatory organisations of professional securities market participants. The strategic objectives of the Department comprise the development of the national commodity market.
The Department drafts Bank of Russia regulations and initiates amendments to the Russian laws governing the areas within its competence. Performing its regulatory functions, the Department puts a great focus on meaningful dialogue with the professional community, strives to apply best world practices, and implements proportionate regulation elements.
The risk-based approach employed by the Department in the course of supervision enables it not only to promptly respond to violations, but also to proactively identify risks in the operation of professional market participants, which helps work out risk-mitigating measures in advance. Owing to the Bank of Russia’s institute of advisory support, organisations have the possibility to communicate with the regulator on any issues arising in the course of their activity.
Should any violations of legislative and regulatory requirements be revealed, the Department applies administrative enforcement measures against breaching organisations and their officials, and prepares Bank of Russia decisions on the suspension of their operations or cancellation of their licences. The Department controls the termination of the activity of a supervised organisation for the purpose of protecting its clients’ rights and interests.
The Department is also engaged in the implementation of measures aimed at preventing financial institutions’ bankruptcy, provides support for the process of the appointment by the Bank of Russia of provisional administrations to professional securities market participants, and exercises control over their work.
The key task of the Securities Market and Commodity Market Department in the area of the development of the commodity market is the establishment of transparent mechanisms ensuring fair pricing at exchange trading. The Department takes part in the elaboration of the requirements for trading participants and the controls over traders’ transactions.