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Russian Trading Floors Allowed to Deal in Foreign Securities Without Issuer Agreement

30.07.2014 18:22 / MIFC

President Putin has signed Act 218, amending the Federal Securities Market Act 39 of 22 April 1996. New regulations for foreign securities exchange trading in Russia will be enacted 10 days after official publication.

According to the Act, foreign securities may be publicly traded in the Russian Federation by approval of the Russian trading floor, no issuer agreement required.

Foreign securities are eligible for trading in Russia if they comply with all of the following:
• are traded on the Russian exchange without being listed;
• are listed on a foreign exchange approved by the Bank of Russia;
• disclosure is made in Russian or another language used in the financial market, according to disclosure requirements of the foreign exchange where securities are officially listed;
• foreign law does not prohibit unlimited access to the securities in the Russian Federation.

The foreign issuer, whose securities are traded in Russia under conditions stated above, is not subject to disclosure rules stipulated in the Securities Market Act.

To protect investor rights, the Act stipulates that the Russian trading floor granting access to foreign securities is under obligation to post on its website a disclaimer on risks related to foreign securities trading, and risks arising from trading in these securities without issuer agreement.

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