01.04.2016, 02:15
Independent Experts And Exchanges to Confront Manipulations
OREANDA-NEWS. The regulator will establish a new expert council to review non-liquid assets trading exceptions in the financial market often used for manipulation purposes. Such a solution will make it possible for the Bank of Russia to expedite investigations of manipulations, deliver more efficient countering malpractices, and this will also promote confidence-building in the market.
The website of the regulator publishes Regulation on Expert Council to review material market deviations and Methodological Recommendations to identify criteria of a material deviation of price, supply, demand and trading volumes for non-liquid securities today. The Council will be set up in the shortest time.
The Council will only include unsalaried independent experts on a voluntary basis. All of them must meet the requirements in terms of an adequate track record. The council will issue expert opinions on the Bank of Russia applications and those of trade organisers as to whether non-liquid instrument trading exceptions have resulted in the deviations of price, demand, supply or the securities trading volumes from the values otherwise arrived at or not. Notably, each expert shall present his/her own findings, based on the input data. The council shall make a final decision by a simple majority of votes and submit it to all the members of the council and to the Bank of Russia Main Office for Countering Malpractice in the Open Market. While reviewing suspicious transactions of trading participants or their customers, the regulator will also rely upon decisions of the expert council.
The experts' involvement to assess non-liquid assets trading is important for confidence of all the market participants.
The exchanges should be more active in countering malpractices. The Regulator recommends that trade organisers should specify procedures to calculate material deviations of price, demand, supply and the non-liquid securities trading volumes by themselves. If they observe at an exchange that non-liquid securities trading falls under these criteria, they will be able to apply to the expert council to find out whether suspicious transactions of trading participants or their customers have resulted in the material deviations.
The website of the regulator publishes Regulation on Expert Council to review material market deviations and Methodological Recommendations to identify criteria of a material deviation of price, supply, demand and trading volumes for non-liquid securities today. The Council will be set up in the shortest time.
The Council will only include unsalaried independent experts on a voluntary basis. All of them must meet the requirements in terms of an adequate track record. The council will issue expert opinions on the Bank of Russia applications and those of trade organisers as to whether non-liquid instrument trading exceptions have resulted in the deviations of price, demand, supply or the securities trading volumes from the values otherwise arrived at or not. Notably, each expert shall present his/her own findings, based on the input data. The council shall make a final decision by a simple majority of votes and submit it to all the members of the council and to the Bank of Russia Main Office for Countering Malpractice in the Open Market. While reviewing suspicious transactions of trading participants or their customers, the regulator will also rely upon decisions of the expert council.
The experts' involvement to assess non-liquid assets trading is important for confidence of all the market participants.
The exchanges should be more active in countering malpractices. The Regulator recommends that trade organisers should specify procedures to calculate material deviations of price, demand, supply and the non-liquid securities trading volumes by themselves. If they observe at an exchange that non-liquid securities trading falls under these criteria, they will be able to apply to the expert council to find out whether suspicious transactions of trading participants or their customers have resulted in the material deviations.
Комментарии