FAS and the Ministry of Agriculture are devising the requirements for exchange trading with sugar

On 18 January 2016 representatives of the Federal Antimonopoly Service (FAS Russia and“Moscow Exchange” PJSC, the “Union of Russian Sugar Producers” Non-Profit Organization as well as market participants discussed some practical issues of launching exchange trading with sugar.

The discussion covered clearance and keeping commodity accounts for sugar operations along with the plans on liquidity support of the new market. Representatives of the largest agricultural holdings shared their expectations about launching exchange trading and evaluated the first experience of accrediting a warehouse for exchange trade.

Head of FAS Department for Control over Chemical Industry and Agro-Industrial Complex, Anna Mirochinenko, drew participants’ attention to the need to introduce changes to the regulations on exchange trading in the part of adding sugar to the list of goods, on which information is presented on concluded off-exchange transactions as well as on observing criteria of regularity and evenness of distributing the traded goods across trading sessions and trading liquidity support. FAS and the Ministry of Agriculture are drafting a Decree of the Government of the Russian Federation, which will outline the relevant requirements.

“Exchange sugar trading will be important for establishing objective price indicators on the market, which will encourage efficient decisions by both market participants and the regulators”, said Anna Mirochinenko.