ANATOLY GOLOMOLZIN: EXCHANGE TRADE INCREASES PERFORMANCE EFFICIENCY, REMOVES GRAY SCHEMES FROM THE MARKET AND MAKES THE ECONOMY HEALTHIER

On 24 July 2019 in Tyumen Deputy Head of FAS discussed with Tyumen regional Government, businessmen and experts the trends and specifics of exchange trade development in Tyumen and other regions in Russia and the current changes in this area   

Deputy Head of FASchaired a session of the Sub-Committee fro developing exchange trade with timber at FAS Exchange Committee during his working visit to Tyumen.

Opening the session he highlighted:

“Developing exchange trade is among the priorities of the state competition policy, it is formalized in the Presidential Order on the main directions of the state competition policy and the relevant National Competition Development Plan”.  

“Exchange trade has become a powerful tool for developing and increasing efficiency of the economy”, stated Deputy Head of FAS.

“Nowadays the physical market (predominantly, at SPIMEX) trades commodities for 1 trillion RUB every year. In some sectors, turnover reaches 20-25%from goods supplied to the market, in other sector it is less so far but we are working to expand trading and the tools used to trade commodities on the exchange. Trading on the derivatives market (predominantly – the Moscow Exchange), that can be used, particularly, for hedging the risks of price fluctuations, approaches 20 trillion RUB. Financial instruments based on commodities vase assets in the form of cash-settled and deliverable futures and options are developing”, explained Anatoly Golomolzin.

Deputy Head of FAS pointed out that Tyumen is one of the most important regions on the market of timber materials in the Urals Federal District and reminded that at the beginning of June 2019, during St Petersburg International Economic Forum, theGovernment had concluded an Agreement on Cooperation with SPIMEX for trade development. He emphasized good prospects for developing exchange trade in the region:

“Tyumen has significant potential in exchange trade, which helps develop various aspects of operations. Exchange trade makes pricing on oligopolistic markets more objective, enabling buyers to influence prices, and restoring the balance of interests with suppliers. This tool increases transparency of markets, bringing some of them from the gray. Use of on- and off-exchange quotations  allows to adequately define the basis for taxation and customs duties, enhancing efficiency of pumping up and spending budgetary funds”, said Deputy Head of FAS.

Anatoly Golomolzin continued: “Entering exchange trade increased first-sale prices from 2 to 5 and more times. It has not increased the prices for end consumers of timber products. Exchange trade rather pushed unproductive resellers from the market, whose profitability reaches hundreds of percents”.

“Exchange trade increases performance efficiency considerably, removes gray schemes form the market, and in general makes the economy healthier”, summed up Deputy Head of FAS.

The Sub-Committee made a decision to from an ongoing working group under the frame of executing the Agreement on Cooperation between FAS and the Tyumen regional Government to devise proposals on developing the market in the Urals Federal District.