The Bank of Russia abandoned the intention to radically limit access to trading on the Moscow stock exchange for retail traders with small accounts, reported the national Association of securities market participants (NAUFOR).
The relevant agreements were recorded in the minutes of discussion by participants of the financial market and representatives of the Central Bank of the Russian Federation of the report “improving the system of protecting the interests of investors in the financial market through the introduction of regulation categories of investors define their investment profile.”
The Protocol noted that unskilled investors operating funds for up to 400 thousand rubles, will retain the ability to make transactions without additional requirements with stocks and bonds included in quotation lists of the first and second level, operations on the organized exchange and the precious metals market, as well as shares of open mutual funds.
In addition, they will be able to make marginal operations subject to passing the online test on the website of the exchange. Online testing will be necessary for all non-qualified investors for transactions on a regulated market of derivative financial instruments and shares of closed mutual funds.
NAUFOR plans to continue discussions with the Central Bank of the Russian Federation in respect of categorization of investors, says the Association.
We will remind, the Central Bank unveiled its plans for public comment in early July and took the opinions of professional participants of exchange trades until August 15. The regulator has proposed that from 2017 to introduce into Russian legislation a third category of investors – professional. Now in the Russian legislation describes two categories of investors: skilled and unskilled.
CB promised professional investors full freedom of action: they will not have restrictions on leverage or tools, but they will be nominated and strict requirements.
For qualified investors the Central Bank was going to set a limit on the amount of leverage at the level of one to three, they should be at least 6 million of savings, a qualification certificate for working in the Russian market, as well as leadership experience as a financial company.
The category of qualified investors, the regulator causes the greatest concern due to low financial literacy, unwillingness to grasp the essence of the tool and risks, as well as attempts of companies to impose risky instruments. The Central Bank proposed to forbid unsecured transactions, and transactions with risky tool they would have to bring in independent financial advisers.
In August, the Moscow stock exchange, NAUFOR and asked the Central Bank to revise plans for the implementation of the new classification of investors, stating that this approach can destroy the derivatives market (futures and options).
They are then reminded that in the Russian stock market to fulfill the requirements for inclusion in the category of “qualified investor” is capable of less than 2% of current active investors who commit at least one operation per month, that is about 3,400 people. The category of “professional investor”, as mentioned in the appeal can be considered to be of 0.05% – about 85 people.