5 Jun 2024 11:37

SPIMEX will create an EAEU exchange commodity market, considering unifying trading within BRICS

MOSCOW. June 5 (Interfax) - The St. Petersburg International Commodity and Raw Materials Exchange (SPIMEX) will build a common EAEU commodity exchange market at the first stage, and aims to organize trading within BRICS in the future, SPIMEX President Igor Artemyev said in an interview with Interfax on the eve of St. Petersburg International Economic Forum (SPIEF).

"A large number of spot exchanges were closed in the United States and Europe after World War II, and a transition was made to futures trading. In recent decades, a large number of 'bubbles' of various types have appeared in the global economy, leading to financial, mortgage and other crises. Moreover, in the last few years, geopolitics are shaping a completely new world order. The world economy and stock markets are divided, and futures trading on Western exchanges is no longer a universal reference point and is not reliable. It turned out that it is more practical to have cash and physical goods and to conduct transactions with them," he said.

Russian legislation, as well as the laws of the countries of the former Soviet Union and some other friendly states, are similar in that priority is given to trade in cash goods. "Now this is our advantage," Artemyev said. Large spot exchanges are also located in countries that are friendly, he said. These are Belarus, Kazakhstan, Uzbekistan, Kyrgyzstan, China, Indonesia, Iran, Turkey, and the United Arab Emirates.

"SPIMEX is one of the three leading global spot exchanges in terms of trading volume and can serve Russia well in the international arena. This is indicated in our strategy. At the first stage, we have set a goal of building a common EAEU commodity exchange market," Artemyev said.

An important step in this direction will be taken at SPIEF. A cooperation agreement will be signed by SPIMEX, the Belarusian Universal Commodity Exchange (BUCE), the Eurasian Trading System (ETS) Commodity Exchange (Kazakhstan), the Uzbek Commodity and Raw Materials Exchange (UzRTSB) and the Kyrgyz Stock Exchange in the presence of representatives of EAEU state governments, the President of SPIMEX said.

"Its essence is that the exchanges of the EAEU countries will begin to publish their indices and price indicators on the SPIMEX SPX platform. Therefore, we will get cross-country- though not indicators yet - but at least benchmarks. We will see the differences across countries, for example, in the price of diesel. This information will tell the buyer and seller a lot and will become an important guide," he said.

As for what these countries can trade with each other, he said, "A single exchange is a rather complicated story, and at this stage there is no need for one to appear. However, it is necessary to conduct joint trading, create a single interface, and simplify mutual trading in general as a way to unite our entire exchange space. In this regard, we see the MOEX as a partner with its commodity segments. Regarding potential exchange goods, the President of Russia has given instructions to prepare proposals for trading in agricultural products. World hunger is a pressing issue, and solving it is the right thing to start with."

"And then - the unification of exchange trading within BRICS. Here, of course, it all depends on the wills of the presidents of the BRICS member countries or other states who decide to join our single exchange trading, as their decisions to join will be required. SPIMEX can become one of the organizers of this process," Artemyev said.