Classification of PSMPs: new thresholds
The Bank of Russia is revising the criteria for classifying brokers, trustees, dealers, and depositories as large, medium-sized, and small organisations since the current thresholds no longer reflect the market size. The draft ordinance has been published for public consultation.
The regulator will take into account the amount of transactions and the type of operations when assessing a professional securities market participant (PSMP). Depending on the category it falls under, the Bank of Russia will establish a list of applicable regulatory requirements and the degree of supervision.
Over 2020–2025, the situation in the financial market changed, leading to a substantial increase in the actual performance indicators of PSMPs. Namely, their client base expanded, their transaction volumes soared, and the amount of assets in their clients’ accounts rose as well.
New thresholds will alleviate the excessive regulatory and supervisory pressure on companies with a small market share that do not carry significant risks.