ANNA MIROCHINENKO: OFF-EXCHANGE DEAL REGISTRATION IS GETTING MOMENTUM

Head of FAS Department for Control over Agro-Industrial Complex took part in a meeting in Volgograd on developing exchange trade

On 25 July 2018, during a working visit to Volgograd, Head of FAS Department for Control over Agro-Industrial Complex Anna Mirochinenko took part in a meeting on “Grain Exchange Trade” organized by the Agriculture Committee of the Volgograd region.

Anna Mirochinenko discussed specifics of registering off-exchange deals.

Under No. 618 Order of the President of Russia "On the main directions of the state policy towards developing competition" of 21.12.2017, developing exchange trade is one of the fundamental principles of the state policy towards developing competition in the Russian Federation.

The expected outcome of the National Competition Development Plan in the agro-industrial sector is increasing marketability of the main types of agricultural products, expanding geography of supplies and the range of agricultural goods sold through the exchange.

According to the speaker, it is exchange mechanisms that establish price indicators reflecting the actual market trends, expand sales channels and simplify search for counteragents, encourage more investments and create additional mechanisms for reducing price risks. Furthermore, the price formed at the exchange cannot be recognized monopolistically high.

Anna Mirochinenko discussed in detail the procedure for registering contracts and informed about administrative liability specified in the Code on Administrative Violations for breaching the procedure for submitting information about off-exchange contracts and informed about executing No. 623 Decree of the Russian Government.

“As of July 2018 1945 of-exchange contracts have been registered at MOEX (around 3.8 million tons of grain for over 33 billion RUB), registration of some deals is not allowed because the forms were not filled in correctly.  It shows that registration of off-exchange deals is getting momentum. Deal registration will enable to form another price index reflecting the actual situation on the grain market”, stated Head of FAS Department for Control over Agro-Industrial Complex.

The speaker also said that the powers to consider cases on administrative violations under Part 6 Article 14.24 of the Code on Administrative Violations are assigned to FAS and its regional Offices (Article 23.48 of the Code on Administrative Violations).

“We do not compel to fine as many market players as possible. Rather than fines, our goal is to enable deal registration process”, summed up Anna Mirochinenko.