Developing small wholesale exchange trading with oil products will have a positive effect upon the state of competition

Over 100 representatives of regional companies – fuel consumers and oil products suppliers took part in a workshop on exchange trading with oil products in the small wholesale segment

On 8 June 2017, Ufa hosted an educational workshop on developing small wholesale exchange trade with oil products. Attendees included over 100 representatives of regional fuel consumers and oil products suppliers from the Republic of Bashkortostan, the Orenburg region and other subjects of the Russian Federation.

The experts were Deputy Head of FAS Department for Control over Financial Market, Alexander Razin; specialists from SPIMEX – an Exchange that is involved in the project on small wholesale trade with motor fuel,  and “Rosneft” NK” PJSC.

A lot of attention at the event was paid to improving this segment of exchange trade in terms of advancing competitive environment.

“Developing exchange trade with commodities and derivatives, the base asset for which are commodities, is very important for FAS, and it’s no accident that these tasks are set at the highest level, and particularly, are included in the National Competition Plan”, Alexander Razin.

He pointed out that today one can consider the exchange market of large wholesale sales of oil products established, taking into account sufficient liquidity for reliable price indicators. At the same time, the small wholesale segment of the oil product market still is not transparent and it is difficult to analyze it.

“Evidently, the market needs a reliable indicator for the small wholesale segment, which, in its turn, is impossible without achieving liquidity at on-exchange trading. We believe it necessary to expand the range of exchange trading participants in this segment involving both new producers and consumers. Increasing the number of participants and fixing simple, transparent access to the goods, in our opinion, will have a positive effect upon the state of competition”, emphasized Alexander Razin.

It was also pointed out that all members of the Exchange Committee – FAS, the Federal Tax Service and the Bank of Russia are coordinating 2017 Action Plan to develop small wholesale exchange trading with oil products (motor fuel) with a list of measures, executing which will enable to form representative price indicators for this market in the near future.