First trading system launched

The launch of trading systems in the commodity market will make it easier for buyers and sellers to access modern sales technologies, help develop transparent pricing principles, identify key participants that are not priorities for large exchanges, as well as create a transparent database for the derivatives market section.

There is an increasingly growing number of requests for trading in new commodity groups, including the small-scale wholesale segment of the market, first of all from small and medium-sized businesses. Trading systems can become an alternative venue offering simplified access to search for counterparties and make transactions for selling and buying commodities and finished goods.

As a result, organised trading in commodities may now be carried out not only by exchanges focused on standardising exchange services for large market players, but also by organisations licensed as a trading system.

In order to avoid regulatory arbitrage and expand the range of participants, it is planned to simplify the rules for the operation of trading systems considering their scale and goods specifics. The introduction of proportionate regulation will lower barriers for entering the market and, accordingly, create the prerequisites for establishing new regional venues with logistics infrastructure and platform-based services for organised trading. In this regard, the Bank of Russia plans to use its regulatory sandbox.

The development of trading systems can positively influence the financial market as well. In the world practice, these systems are active market participants along with exchanges. They may become the basis for launching new innovative products and ideas.

Those concerned about the development of trading systems and their proportionate regulation can send questions and proposals to the Financial Market Infrastructure Department of the Bank of Russia.