Dmitri Chavkerov
MOSCOW (Reuters) – Russian financial market has adapted to Western sanctions and even foreigners have found ways to continue to work on it, said the Chairman of the Executive Board of Moscow exchange Alexander Afanasiev.
“Despite all the shortcomings of our current time in terms of regulating the market and sanctions, there is a sense that the market in General has adapted to the sanctions. Those who were very afraid and blew on the water, they market their questions solved and not very appear, and those who work, they have found a way to work and see that it is relatively safe,” said Afanasiev in the conference National financial Association.
“So we see the arrival of aliens appeared first clearing member in the currency market, which is a non-resident – Bank of America (NYSE:BAC), we are still awaiting the influx of the same kind, then just do not put a cross”, – he added.
“I can’t speculate on the changes in the sanctions policy of other States, but even with her newselena, I see good prospects for capital raising… With all due respect, the Western investor is being very nice, kind, but at the same time gregarious and cowardly”, – said Afanasiev.
The urgent market of Russia suffered from the Western sanctions.
“Pricing in London has always been a tradition… for foreign exchange derivatives… It is a fact. A large amount was always cross-border transactions, now he fell and when he fell, it turned out that we lack a player who often represented the side of the speculator,” – said Afanasiev.
On the market side of the speculator is very important, if all the players are hedged from one risk.
When, for example, all waiting for lower interest rates of the Bank of Russia, hardly anyone is hedged from its growth. Or when the fear of the weakening of the national currency, few of the players are hedged from a sharp strengthen.
“Accordingly, on the other side stands a large player who can afford such a position because his position is great and it’s not a very big risk for him,” said Afanasiev.
“Russian players are not very can this player the former soon to be replaced, it’s not the volume, they are cautious about the risks, don’t always have the expertise to close in such a complex portfolio in all global markets,” said Afanasiev.
GAME WITHOUT VOLATILITY IS NOT INTERESTING
Inhibit the growth of the derivatives market in Russia, according to the head of the exchange, and the complexity of the accounting of derivatives in corporate clients, and reducing the volatility of the basic asset.
“Volatility fell as it was not very long and when viewed for a short period, say quarterly, we now have a level of volatility in the stock market three times, and currency – five times lower than in the same quarter of 2015.”
“Low volatility not attract any of the hedgers, I think it will cost, nor the speculators, nothing to earn,” – said Afanasiev.
The Central Bank said he would work on some development constraints market factors.
“We are in favor of development of the derivatives market do not promise to shake up the ruble and interest rates,but accept reproach in terms of faults remaining in regulation, accounting and tax accounting”, – said the head of Department of development of the financial market the Central Bank Elena Tchaikovskaya.
According to her, the size of the domestic market is clearly insufficient to hedge the risks of large corporations of the Russian Federation, and the external market remains for the controller the main focus in this part.
“The market is global, and its magnitude determines the cross-border nature of the operations of the corporations, and our goal is to avoid regulatory arbitrage.
She gave an example – the Europeans are going to impose a tax on financial transactions and one of the participants of the market have threatened for months to translate a business in Singapore.
“The market is very mobile and minimum regulatory arbitrage is very sensitive…
Afanasyev warned the Central Bank against further steps to strengthen regulation of the financial market. The Bank of Russia now there is no approach to directly control the interest rate risk, there is only indirect control via liquidity ratio, said Afanasyev.
“If more intensified approach, and I urge him to strengthen, although it will give impetus to the development of the derivatives – one reason that the number of standards in Russian banks record higher than any other market I know about 13-14… in the rest of them from two to five.
Mobira sees the growing number of foreign banks in clearing in the currency market of Russia, despite sanctions
