Start of Bank of Russia and market discussions on brokerage regulation

New consultative report published in the Bank of Russia website introduces key proposals and pressing issues related to the regulation of brokerage.

The paper analyses modern intermediation models in the domestic financial market and compares current regulation practices in Russia and in EU countries.

The authors of the report believe it necessary to employ uniform approaches to regulated and non-regulated segments of the financial intermediation. Additional points of discussion proposed by the Bank of Russia include the ways to proceed from rules-based to the principles-based regulation of intermediation services and also to raise the responsibility of financial mediators to investors. The report touches upon one more topic related to the protection of the proprietary rights of brokers’ customers.

The paper examines the regulation of margin trading and application of marginal rules to all markets, including FX and derivatives markets.

Measures proposed by the document are designed to set up conditions for strengthening investors’ confidence in financial intermediation and to ensure a further development of the sector. Based on the outcomes of the discussion with market players, the regulator will formulate a concept to upgrade the regulation of broker activities.