ANATOLY GOLOMOLZIN: DEVELOPING EXCHANGE TRADE IN RUSSIA IS A FAS PRIORITY

On 3 July 2019 FAS Presidium emphasized the importance of this area and the need to reflect in detail the results of such work in 2018 annual competition report

FAS discussed with SPIMEX and MOEX development of exchange trade in Russia. Deputy Head of FAS Anatoly Golomolzin reminded that exchange trade development is an important measure listed in the Order of the President of Russia “On the main directions for developing competition”.

“It is a systemic measure; it concerns competition development in a lot of markets, first of all, commodities, as well as financial ones. It effects various applications, for instance, increasing pricing transparency. Price indicators, regularly published by the exchange can be used by companies in doing business as well as the authorities to perform their functions. Based on exchange trading, both national and EAEU markets are developing”, said Deputy Head of FAS.

He pointed out that it is exchange trade that is the key tool to build up common EAEU markets and the key market pricing tool on the markets of oil, gas and electric power.

Anatoly Golomolzin added that on-exchange trade facilitates market pricing on oligopolistic markets, enabling consumers to influence pricing.

“On–exchange trade helps put markets to order. For instance, sale prices on eh exchange in timber industry are 2 - 5 and more times higher than in the off-exchange segment. Consumers do not pay more but on-exchange trade excludes resale chains and, accordingly, gray markets increases efficiency of taxation and budgetary spending”, concluded Deputy Head of FAS.

He explained that with development of on-exchange trade, it becomes possible to form Russian benchmarks of world prices for the main export markets, and develop markets of derivative financial instruments on their basis, attracting foreign markets liquidity to Russia.

“It will give an addition capital floating between financial and good sectors and facilitate development of one of the world financial centre in Russia”, underlined Anatoly Golomolzin.

“To fulfill the Presidential Order, First Deputy Chairman of the Government approved the Action Plan on systemic development of on-exchange trade, establishing market prices for the key groups of goods, attracting economic entities in the on-exchange trading”, pointed out Deputy Head of FAS.

“On-exchange trade development is a system-wide measure that facilitates competition and sustainable economic development. That is why a decision is made to put a special emphasis on this area in the theme of the year”in the FAS report”,summed up Anatoly Golomolzin.