Bank of Russia introduces new procedure to approve model terms for repo contracts and for financial derivative, securities, FX and precious metal transactions

The Bank of Russia has introduced a new procedure for the approval of model terms, adopted by a financial market self-regulatory organisation, for repo and financial derivative contracts, and/or other types of contracts on securities, and/or FX, and/or precious metal transactions, as well as amendments thereto. The corresponding ordinance¹ is coming into force today and determines the requirements for the composition, form and execution of documents submitted for approval to the Bank of Russia.

The new procedure stipulates that applicants are to submit documents in the electronic form in accordance with the procedure for the Bank of Russia to interact with financial market self-regulatory organisations provided for by Part 8 of Article 76⁹ of Federal Law No. 86-FZ, dated 10 July 2002, ‘On the Central Bank of the Russian Federation (Bank of Russia)’.

Moreover, applicants no longer need to resubmit to the Bank of Russia for approval the whole document package if the originally submitted document package was incomplete. In this case, the applicant will receive a request to submit only the missing documents in due time. Meanwhile, the term established by the Bank of Russia to review the documents will be suspended until the date of receipt of the requested documents instead of being renewed as it used to earlier.

At the same time, the new ordinance repeals FFMS Order No. 13-11/pz-n, dated 21 February 2013, ‘On Approving the Procedure for the Federal Financial Markets Service to Provide a State Service to Approve Model Terms for Repo and Financial Derivative Contracts, and/or Other Types of Contracts on Securities and/or FX Transactions Adopted by a Financial Market Self-regulatory Organisation, as well as Amendments Thereto’.

¹ Bank of Russia Ordinance No. 5499-U, dated 6 July 2020, ‘On the Procedure for the Bank of Russia to Approve Model Terms for Repo and Financial Derivative Contracts, and/or Other Types of Contracts on Securities, and/or FX, and/or Precious Metal Transactions Adopted by a Financial Market Self-regulatory Organisation, as well as Amendments Thereto’.

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