- The near-complete integration of the Russian exchanges is one of the prerequisites for MIFC. What has been done so far?

- We have joint projects in place, there is a MICEX index derivative. I welcome this and I thank MICEX for green-lighting the project and RTS for developing it. However, we have not seen a strategy for the new exchange so far. Of course, competing with London is a cool idea, yet it is also impractical. Still, a Ministry for Economic Development official said recently that the Central Depositary and the integrated exchange are two main foundations for the international financial centre in Russia. I think it’s not enough.

- Is the market ready for exchange integration? Have trading rules been adopted by MICEX?

- It’s all talk so far. Corporate governance norms are being developed, Committee rules are being discussed, how markets will be represented, it is all being discussed, none of it is working yet. One thing is working, the MICEX index is being traded in the derivatives market. It’s a first. And it is by and large the only success.

- How is MIFC getting on?

- MIFC is a complicated process. What will MIFC be – Moscow and its roads or a major-scale center with regions and their economies? The Ministry for Economic Development says that MIFC will add extra edge to Russian financial institutions. I see it differently.

We need to build attractive transparent Russian financial institutions, this will create the right climate for MIFC. However, at the recent session the President made it clear that MIFC is a priority and that it is very much on the agenda, so we will keep building it.

It is important that if the Russian Federation does not pay serious attention to the development of the Russian financial market, if financial market committees continue to be chaired by bureaucrats, and market participants are excluded from the process, if the Russian authorities and market participants do not discuss current affairs and their expectations and needs – then the Russian stock market is in danger.

- Will there be a new wave of the crisis?

- The crisis is still on, it has not ended. We didn’t escape from it. Nothing has changed during these years. The currency has not become more

stable. Euro is troubled within Eurozone, US dollar is near market crash. We say that within the scope of this currency problem that puts the financial market in danger, we overcame the crisis. Of course, it’s not entirely true.

The crisis is macroeconomic; it embraces the whole global economy. As Russia is a part of this global market, the crisis is similar to all other countries. In order to soften the crisis in Russia, we have to work on special measures. It is necessary to find the best market specialists, analysts and develop such measures that will soften the crisis impact on the citizens of our country.

- What kind of laws are needed to overcome the crisis?

- The meeting of the President`s Financial Markets Council clarified that the most important thing is to adopt the basic laws. In the meantime, according to the President, ‘the law is not enough; we have to lose the preconceived legal illusions that good laws can help change the situation completely’. It is important to have market transparency, procedures, and market participants’ feedback.

In reality, laws are important, but it is more important to understand what steps are needed to soften the crisis. For instance, in case of crisis and liquidity problems banks are promised one trillion rubles in support. But again, no one cares for the non-banking financial market; no one wants to think about it. What will happen to non-banks, what is going to happen to asset management and insurance companies? Moreover, there are pension funds, brokerage and insurance companies. We need a general anti-crisis strategy.

Панкин Д.В.