FAS, RUS RAILWAYS, SPIMEX SIGNED AN AGREEMENT ON COOPERATION OF EXCHANGE TRADE
In 2020, Russian Railways and SPIMEX plan to introduce an institution of commodity pool operator on the oil products market1
On 19 December 2019, the Federal Antimonopoly Service, “Russian Railways” OJSC and “St Petersburg International Mercantile Exchange” JSC concluded an Agreement on Cooperation. The documents is signed by Head of FAS Igor Artemiev; Oleg Belozyorov, General Director – Board Chairman, “Russian Railways” OJSC; and Alexei Rybnikov, President of “SPIMEX” JSC.
OBT technologies will increase transparency of exchange commodities supply chains from the buyers on the exchange to the end recipients, with clear tying of exchange contracts to the delivery.
Final pays for commodities transportation, over- or under-load in accord with the exchange contracts will be optimized; calculations and actual payments for excessive idle time of cars through the clearing system will be made automated. The document flow on executing exchange contracts also will be optimized.
“Exchange trade is on the central positions in the National Competition Development Plan. This is because exchange trade is an element of market demonopolization. Due to exchange trade, companies have guaranteed deliveries and get the goods faster. Exchange trade enables resolving a broadest range of issues – decrease gray turnover on some markets and increase pricing transparency. Improving exchange trade ultimately leads to establishing reliable market indicators and create preconditions for sustainable economic development”, commented Head of FAS Igor Artemiev.
“Our company highly values the signed Agreement. Connection between exchange trade and transport logistics enables considerably better transparency of the market of railway freight of the most essential commodities in Russia. “Russian Railways” OJSC is a SPIMEX shareholder and the signed document conforms to our corporate strategy towards enhancing market performance, implementing the international standards and state-of-the-art digital technologies”, said Oleg Belozyorov, General Director – Board Chairman, “Russian Railways” OJSC.
“Our collaboration will facilitate further improvement in exchange trade with railway delivery. This project means systemic, high-quality changes on the market of oil products, which increases transparency of executing exchange contracts and creates a completely new level of services offered by the exchange infrastructure to customers, added Alexei Rybnikov, President of “SPIMEX” JSC.
Background:
Cooperation between “Russian Railways”, the Federal Antimonopoly Service, and “St Petersburg International Mercantile Exchange” takes place under the Action Plan2.
1 The role and functions of CPO are specified in the Federal Law “On clearing, clearing activity and the central counteragent” of 7 February 2011
2 № 1697-r Order of the Government of the Russian Federation of 16 August 2018