Bank of Russia creates new incentives to promote commodity trading systems
The Bank of Russia will ease a number of costly and time-consuming requirements for trading systems specialising solely in commodity trading. Currently, this institute is poorly represented in the Russian financial market, and the regulator is creating conditions to promote its development.
By its ordinance, the Bank of Russia cancels the requirements for commodity trading systems to have backup software and hardware complexes, conduct operational audit, and establish a technical committee. This easing will significantly reduce the systems’ costs, which will incentivise new trading platforms and traders to enter the organised commodity market.
Furthermore, this will provide more opportunities for market-based commodity pricing. Market prices will be determined based on not only the results of open trading, as it is now, but also the results of unilateral auctions, provided that bidders and bids are competitive.