Bank of Russia proposes to discuss reforming financial indicators

The regulator urges the professional community to accelerate the process of solving issues related to reforming financial indicators, taking into account the international reforms that are currently under way.

Financial indicators, which represent benchmark interest rates, exchange rates, stock and commodity prices, play a key role in the functioning of financial markets and the economy in general. For this reason, it is crucial to ensure they are fairly constructed and thus build up market participants’ trust in them.

According to the published report, Russian market participants need to choose risk free money market benchmarks and to develop forward benchmarks that would comply, among other things, with international standards.

The professional community is also facing another task, which is to prepare an action plan due to the planned LIBOR retirement.

The Bank of Russia believes it necessary to conduct public consultations and to gather opinions of market participants with regard to the above-mentioned issues. Suggestions and responses to questions will be accepted until 31 December 2019.