The Bank of Russia as the regulator of financial markets submitted to the state Duma the proposals of the St. Petersburg Mercantile exchange (SPIMEX) to change the law regarding the admission of foreigners to trading futures contracts on Russian oil exports. Experts believe that this will simplify the bidding procedure and will help in the creation of domestic benchmark, ensuring the liquidity of trading. Foreign traders have expressed interest.
Today, foreign companies can not be bidders on the Russian commodity exchange. As told “Izvestia” SPIMEX President Alexei Rybnikov, this complicates the procedure of access to stock trading, creates undue need to work through intermediaries.
— The Bank of Russia in these conditions, came out with proposals of amendments to the legislation, the relevant text is now under consideration in the state Duma. Exchange this initiative strongly supports, — Rybnikov has told.
To the operational review in the state Duma “news” failed, however, Deputy energy Minister Kirill Molodtsov told the newspaper that familiar with this initiative.
The Ministry of energy has a positive attitude to the admission of foreign players to trading on the commodity exchange. The emergence of non-residents will have a significant impact on the liquidity of the auction — said the Deputy Minister.
The Central Bank “news” reported that “the issue is under discussion with concerned agencies and the State Duma”.
We will remind that plans on turning the Urals into a benchmark (reference grade) there are quite a long time. However, over the past year this project has risen to the level of the Russian President and government. The fact is that before the Russian oilmen did not need to use such a tool. The price of oil exceeded $100 per barrel and companies were not required to hedge and manage price risks. Today the situation on the world oil market is different. And the Russian leadership took a decision about creating your own marker varieties, an alternative to the addition of North sea Brent, which is calculated from today the price of Russian Urals. According to senior Vice-President of “Argus media” Vyacheslav Mishchenko, the average discount is $2-3 per barrel.
According to the SPIMEX President Alexei Rybnikov, today the project, which trains exchange, is primarily “project deliverable futures contract on Russian export oil”. Now, as the head of the exchange, in preparation for the SPIMEX exchange contract together with the oil companies has developed General terms of delivery for futures, registered with the Bank of Russia trading rules. Also developed the project specifications and parameters of the contract.
At the end of 2015 SPIMEX start your test trades on a futures contract. In addition, in the first quarter of this year SPIMEX held a series of seminars for representatives of oil companies — future bidders.
— Work on preparation for start is conducted with Russian oil companies and foreign market participants. With “Transneft” discusses the synchronization procedure for the formation and export positional graphs with the procedures for the delivery of the exchange goods, — said the President of commodity exchange.
In “Transneft” “news” said that in the framework of the launch of trading of futures contracts, the pipeline company will provide energy, positional graphics not for two week and two months.
— Based on the launch of this exchange contract and future as a set of liquidity (which is a long time in a few years) to create a benchmark of domestic raw materials, — said the source, noting that at the request of President Vladimir Putin by June 1, the government shall approve the action plan for the launch of the contract, which is scheduled for the end of 2016.
To create liquidity of trading of the need to attract foreign players.
— I think it will be interesting to those players who today buy oil from Russian oil companies through direct contracts, such as Glencore, Vitol, Trafigura, Gunvor, — said senior Vice-President of “Argus media” Vyacheslav Mishchenko, adding that an interest will also be and Asian companies.
In General he believes that the launch of trading deliverable contracts export grade Urals by the end of the year is quite real.
— Initiative supported by the leadership of the country, and I believe that with high probability the start of the auction will be held in November-December. Now there is technical work on the organization of trading and testing the system in the structural units of Russian oil companies, — said the interlocutor of “Izvestia”.
The American company Vitol “news” said that “when legislation is going to take part in bidding at Russian commodity exchange”.
Trading company Trafigura, Gunvor are unable to provide you with comments.
