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Risk Subscription Fee

07.10.2013 11:53 / Vedomosti

The Exchange plans to offer stable players a limit of some RUB 80m for unsecured trading in shares and bonds, according to a brokerage source, confirmed by a Moscow Exchange representative. The broker stated that the Exchange Repo Committee had passed the decision on 3 October. The Exchange source says approvals are still due from the Stock Market and Risk committees, followed by a Board sign-off: “The new rules could be enacted as early as December”.

The existing RUB 80m limit allows unsecured trades in blue chips, such as Sberbank, Gazprom or OFZs, worth a total of на RUB 1bn, says the broker: today, a reserve of some 10% has to be set aside for this. However, only players who have paid the Exchange Risk Coverage Fund are entitled to the option, according to the project presentation. Participation is voluntary, the RUB 5m fee equal for all. Deputy Chairman of Moscow Exchange Andrey Shemetov says at the initial stage the fee could be payable in Roubles only, with payment in foreign currency, securities or bullions to be introduced in the future.

Only stable players will be eligible, however: they must operate without loss with high capital requirements — RUB 10bn for banks, state corporations and international companies and RUB 600m for the rest. At least 50 out of 200 stock market clearing participants qualify, says the exchange source. The fund will become operational with a minimum of 50 participants, says Shemetov: in this case, the maximum limit will amount to approximately RUB 80m. The limit is not fixed: it will be based on the number of participants and trading default limits set by the exchange. “According to the concept, the more clearing participants join the fund, the bigger their limits will be”, states Shemetov.

Yulia Orlova, Daria Borisyak

Trading infrastructureProject Group №1Anton Shemetov