Financial Markets: Increasing Complexity, Maintaining Stability

3–5 July 2019, ST. PETERSBURG


Programme


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4 July

11:50–13:00

Presidential Library,
Conference hall 3 (second floor)
Financial Market Professionals Session 3.1: New Requirements for Financial Market Specialists As of 1 July 2019, in accordance with Federal Law No. 238-FZ, dated 3 July 2016, ‘On Independent Qualification Assessment’, any qualification asses...
As of 1 July 2019, in accordance with Federal Law No. 238-FZ, dated 3 July 2016, ‘On Independent Qualification Assessment’, any qualification assessment procedures that are not outlined in this law will no longer apply. For the financial market, this means there is a need to revise the qualification requirements for financial market specialists, since the qualification exam for the financial market specialist certificate will no longer be in use. This roundtable will therefore focus on proposals for qualification requirements, as well as the details of these requirements (level of the degree, major subject, and the exact area of training).
Given the growing use of software and hardware in the securities market and the global trend of robotisation, the session will also cover regulatory adjustment issues for cases in which the role of a financial market specialist is performed not by a human, but by a programme.
Moderator
Konstantin Korischenko, Chairman of the Commission for Professional Qualifications in Risk Management and Financial Services, Council for Professional Qualifications in the Financial Market; Chairman of the Supervisory Board, Guild of Financial Analysts and Risk Managers
Speakers
Larisa Azimova, Vice President, Head of the Depositary Center, Gazprombank
Dmitry Firsov, CEO, Newton Broker
Matvey Gorbachev, Director, Midland Hunt
Olga Shishlyannikova, Deputy Director, Securities Market and Commodity Market Department, Bank of Russia

14:30–15:40

Presidential Library,
Conference hall 3 (second floor)
Financial Market Professionals Session 3.2: Competition for Retail Investors: Brokers and Trustees In a rapidly changing financial market, in which interest rates on bank deposits are becoming less attractive compared to the investment return off...
In a rapidly changing financial market, in which interest rates on bank deposits are becoming less attractive compared to the investment return offered by professional market participants, the retail investor’s attention is increasingly turning to the securities market. In these conditions, the battle for clients between financial intermediaries such as brokers and trustees has escalated.
This session will cover topical issues related to the development of the financial market, with regard to the advantages and risks of various models; serving the interests of investors when offering them investment products; and employing unfair competitive advantages.
For example, brokers’ statutory right to use their clients’ monetary assets in their own interest means that service fees are reduced, making brokerage more attractive to clients. However, this model comes with increased risks for investors. In addition, the population’s relatively low level of financial literacy is hindering the development of brokerage for a wider audience.
In this environment, highly qualified trustees, whose experience and skills allow them to determine the optimal investment strategy in accordance with the consumer’s appetite for risk, are an attractive proposition. However, trustees’ activities come with significant risks: trustees do not guarantee that anticipated rates of return will be reached, and cannot be held responsible if assets are lost in the pursuit of a particular strategy. Moreover, an additional barrier to the development of asset management in the retail sector is the low return offered by relatively small client portfolios, which forces trustees to set higher entry thresholds for retail investors.
Moderator
Catherine Golub, Project Coordinator, Forum Analytical Centre
Speakers
Ekaterina Andreeva, Vice President, Russian National Association of Securities Market Participants (NAUFOR)
Irina Krivosheeva, CEO, Alfa-Capital Management Company
Vladimir Potapov, CEO, VTB Capital Investments; Senior Vice President, VTB Bank
Larisa Selyutina, Director, Securities Market and Commodity Market Department, Bank of Russia

16:00–17:10

Presidential Library,
Conference hall 3 (second floor)
Financial Market Professionals Session 3.3: The Derivatives Market: On the Cusp of Change? During this session, participants will discuss existing regulation, the requirements of today’s financial market participants (including corporate ...
During this session, participants will discuss existing regulation, the requirements of today’s financial market participants (including corporate and institutional investors) and actions that need to be taken for the further development of the derivatives market.
Currently, spot trading holds the largest share of the commodity market. The development of a derivatives market is the logical transition from a spot market to an investment market, whereby derivatives move in correspondence to underlying assets, which is a crucial part of using hedging to manage financial risks. Currently, commodity derivatives are tied for the most part to foreign benchmarks, which do not always fairly reflect the value of Russian commodities.
This session will therefore focus on plans by Russian exchanges to develop derivative trading based on commodities (oil, petroleum products, agricultural products, etc.) targeting both domestic and foreign markets.
Derivatives traded on the Russian market based on other underlying assets, including standardised and other exchange derivatives, will also be discussed.
The discussion will cover pressing issues of regulating interest rate risk of a certain financial instrument, and the use of repo with CPC indicators as an indicator of a fast-developing product in the money market
Moderator
Igor Marich, Managing Director, FX, MM & Derivatives, Member of the Executive Board, Moscow Exchange
Speakers
Igor Golutvin, Head of Commodity Trading and Deputy Head of Global Commodities division, VTB Capital
Roman Lokhov, CEO, BCS Global Markets
Dmitry Popov, Head of Petroleum Product Sales, Lukoil
Olga Shishlyannikova, Deputy Director, Securities Market and Commodity Market Department, Bank of Russia
Alexander Zozulya, Co-Head of Trading, Global Markets Department, Sberbank

17:30–18:40

Presidential Library,
Conference hall 3 (second floor)
Financial Market Professionals Session 3.4: Identifying Optimal Levels of Regulation and Efficient Oversight in the Securities Market: Theory and Practice This session will cover key issues for professional market players, including managing regulatory burdens and interacting with the regulator during...
This session will cover key issues for professional market players, including managing regulatory burdens and interacting with the regulator during oversight activities.
In 2018, the Bank of Russia issued a concept covering proportional regulation and risk-based oversight for non-bank financial organisations (NFOs). It worked with self-regulatory organisations and market participants to draw up a roadmap to introduce the concept for securities market players. The implementation of this concept has meant that the Bank of Russia’s principles of and approach to oversight are changing.
Proportional oversight hinges upon the level of risk for organisations which come under scrutiny, as well as the nature and extent of consequences for such organisations if they fail to meet obligations to their customers, the industry, and the market as a whole. Accordingly, when performing regulatory measures, the Bank of Russia currently places an emphasis on a risk-based approach and ensuring a transition to proportional supervision by establishing uniform ways to determine oversight methods, depending on the size, significance, and the risk profile of organisations under scrutiny. At the same time, market participants claim that the supervisory procedures place a significant burden on financial institutions.
In this discussion between the professional community and the regulator, further steps to achieve optimal regulation and risk-based supervision of NFOs will be considered.
Moderator
Andrey Zorin, Government Relations Director, Otkritie Bank
Speakers
Tatyana Fedyashina, CEO, REGION Broker Company
Larisa Selyutina, Director, Securities Market and Commodity Market Department, Bank of Russia
Vladimir Yarovoy, Head of Global Markets and Managing Director of Global Markets Department, Sberbank
Kirill Zverev, Vice President, National Association of Securities Market Participants (NAUFOR)
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5 July

11:50–13:00

Presidential Library,
Conference hall 3 (second floor)
Financial Market Professionals Session 3.5: Investment Consulting: Initial Results Legislative changes that came into effect in December 2018 have helped shape regulation for a new sector of the financial market: investment consul...
Legislative changes that came into effect in December 2018 have helped shape regulation for a new sector of the financial market: investment consulting. Proposed topics for discussion during this session include the initial results of introducing the new legislation, along with required adjustments to the regulatory framework in light of established business practices. This will encompass an examination of a draft of the basic standard for investment consulting, which is designed to provide a detailed description of this kind of service. Another relevant issue – the launch of new products by market participants on the basis of the new legislation – will also be covered, as will changes to business models stemming from legislative developments. Taxation of investment advisers, including those who are self-employed and possibly also work in other fields, will also be an important area of discussion. The procedure and practice of accrediting automated consulting programmes will also be considered.
Moderator
Alexey Timofeev, President, Russian National Association of Securities Market Participants (NAUFOR)
Speakers
Vladimir Chistyukhin, Deputy Governor, Bank of Russia
Vladislav Kochetkov, President and Chairman of the Management Board, Finam Group
Vasily Zablotsky, President, Self-Regulatory Organisation ‘National Finance Association’
Mikhail Znamensky, Wealth Management Head, Citi Russia

14:30–15:40

Presidential Library,
Conference hall 3 (second floor)
Financial Market Professionals Session 3.6: The Role of Infrastructure in Building a Trusting Environment and Simplifying Investor Access to the Financial Market in the Era of Digitalisation Investment is vital for economic growth. One source of investment is household savings, and as such we need to increase public interest in the fina...
Investment is vital for economic growth. One source of investment is household savings, and as such we need to increase public interest in the financial markets and improve financial literacy, and, most importantly, create a trusting environment in the financial market.

This environment should minimise the risks of fraud and violation of investor rights, and also provide investors with modern online tools to access the market, up-to-date and verified information about the tools and assets owned by investors, and improve investment returns.

The roundtable participants will share their experience, vision and expectations regarding the role of the future post-trading infrastructure in creating a trusting environment, as well as the prospects of new digital technologies for investors in the Russian market.
Moderator
Eddie Astanin, Chairman of the Executive Board, National Settlement Depository
Special guests
Elena Chaikovskaya, Advisor to the First Deputy Governor Sergey Shvetsov, Bank of Russia
Maxim Getsman, Deputy Director General for Core Business, VTB Registrar
Maxim Grigoriev, Executive Partner, Gartner
Natalia Smirnova, Independent financial advisor

16:00–17:10

Presidential Library,
Conference hall 2 (first floor)
Financial Market Professionals Session 3.7: Fair Pricing on the Securities Market Fair pricing of securities, in line with a particular economy’s requirements, is essential for sustainable growth in a financial market.Given the e...
Fair pricing of securities, in line with a particular economy’s requirements, is essential for sustainable growth in a financial market.
Given the existing ill-founded practice of estimating the fair value of equities based on their stock prices, the notion of fair equity value in organised trading needs to be verified and validated by both the regulator and market participants.
What determines the confidence of the Bank of Russia and market participants in the price established in exchange trades? Who creates the price: professional analysts and traders, or retail investors?
What is the role of domestic investors as a source of fair pricing? Why is it that the fundamental value, exchange price, and fair value are not the same thing? How is fair value affected by factors such as access to insider information and external shocks of a political or non-market nature? Is it possible to define the criteria for market activity and liquidity, and determine quantitative values for them?
Speakers
Andrey Kuznetsov, Partner, KPMG
Anna Kuznetsova, Member of the Executive Board, Managing Director of Securities Market, Moscow Exchange
Anton Malkov, Managing Director, Corporate Finance, Sberbank CIB
Sergey Shvetsov, First Deputy Governor, Bank of Russia
Front row participant
Alexey Buzdalin, Head of the Working Group, NSD Price Center; Director, Center for Economic Analysis, Interfax Group