Regulator to draft prudential measures for stock market participants by fall
MOSCOW. April 4 (Interfax) - The Federal Financial Markets Service (FFMS) plans to draft prudential supervision measures for professional stock market participants by the fall, FFMS Chairman Dmitry Pankin said at the Exchange Forum 2013 on Thursday.
"I would not demonize the process of creating a single regulator. The issue is that financial market regulation and supervision really does need to be changed and a whole range of changes are required," he said.
A current problem for the exchange is that the regulation and supervision focus is on following "a certain set of rules," such as did the professional participant hand in their report on time, are they located at the place of registration, do they comply with anti-laundering regulations.
The situation is considerably worse with regard risk assessment, he said. "It is here that regulators need to focus in the near future. This is an inevitable path that regulation and supervision must evolve on regardless of whether it is as part of the Central Bank or outside it," Pankin said.
The banking market has to a large extent built a system of risk-oriented supervision and the same needs to be done on the non-bank market.
FFMS held a meeting Wednesday with market participants on prudential supervision, he said. "We plan to issue draft instructions to establish risk to capital ratio standards for different categories of professional participants," he said, adding that these instructions should be adopted in the fall.
The standards for professional participants will be similar to those for banks, Pankin said. "The idea is to introduce standards for the ratio of capital to risk that a professional participant may take on, such as the ratio of capital and risk for one counteragent," he said.
Standards will be adopted for management companies also, he added. "The next step is non-government pension funds and insurance companies," he said.
Pankin said there are no plans to draft standards for registrars and exchanges.
The service plans to launch prudential supervision measures next year. There will be a transition period during which not all standards will be observed.
There are still many questions concerning these standards, including their quantitative indicators, risk assessment and so on.
