On the 18th of December 2006 there was held a presentation of the Russian Repo
Council established by SRO NSMA with support of the Central bank of RF and MICEX
in the frame of jointly realizing project “Repo development in Russia”. As of
today the major results of the project are introduction of Repo operations into
the Russian legislation and elaboration of a taxation regime to facilitate the
In 2006 on the basis of the project prepared by SRO NSMA the Ministry of Finance
of RF released the Methodical recommendations on Repo taxation, and in December
2006 the Association completed a two-year work dedicated to developing a General
Master Repo Agreement. The agreement was made basing on General Master Repo
Agreement of ICMA (GMRA) and adapted to the practices of the Russian market and
the Russian legislative and normative base. The agreement was elaborated and
signed by the largest Russian financial organizations – Sberbank, Vneshtorgbank,
Gazprombank and is currently offered to market participants as a standard
contract for a forming system of refinancing.
During presentation NSMA President Konstantin Volkov expressed gratitude to the
main curators of this work – Alexey Obozintsev (Deputy Chairman of Gazprombank),
Alexander Altunin (Head of Stock Operations Department of the Bank of Russia),
Alexey Akinshin, without them this work would not have taken place.
Russian Repo Council was introduced by the Chairman Alexey Akinshin: “There are
some barriers, which do not allow such a very interesting tool as Repo to be
actively implemented into the Russian practice – first of all, it is lack of
clear and acceptable rules of the game to be approved legally” – he said.
“Besides, it is necessary to create a system of efficient, fast and quality
promotion of the agreement in the market. For that it was decided to establish a
structure that would help this basic product to cover to the maximum the whole
market, because everything that has been done so far is a first stage of
practical work on self-organizing this segment of the Russian market. In turn,
the Russian Repo Council will form a Register of Russian Repo dealers. For
organizations, active on this market it means they will get a quality mark, a
proven reputation of a serious partner for Russian and foreign financial
Sergey Shvetsov, Head of Financial Operations Department of the Bank of Russia
characterized interrelation between initiators of the process as follows:
“Speaking about working out and application of the NSMA Repo agreement, the Bank
of Russia acts not from a regulator’s position, whilst as a partner who is
interested in applying this agreement. The refinancing system of the Bank of
Russia should deliver stable interest rates and Repos are called on to provide
its efficiency”. S.A. Shvetsov described the current refinancing system as a
two-level one, in which the liquidity can attract only a small number of
organizations. Later on this liquidity should be redistributed among other
credit organizations, as well as among organizations of non-financing sector.
And exactly here the Repo agreement, which was introduced to the market by NSMA,
would appear to be very needed.
Alexey Khavin, Vice-president of Gazprombank reported about work on the
agreement and possibilities of its use by the participants. Yakov Mirkin, Board
Chairman of Investment Company “Eurofinance”, Head of Securities and Financial
Engineering Chair of the Financial Academy under RF Government highly evaluated
the agreement as a serious step towards overcoming fragmentariness of the
Russian financial market and reducing costs of the participants, as well as
towards unification of the Russian structure of the market with international
Denis Garikov, Deputy Head of MICEX Stock Market Department reported about
increase of Repos in the stock exchange, including due to joint work with NSMA,
as well as about possibilities of usage of Repo agreement by MICEX participants.
Maria Kudryavtseva, NSMA expert reported on, what benefits can be derived from
usage of the Agreement for minimizing different types of risks in Repo
"Availability of such Standard in the market is a great success, and activities of the Russian Repo Council will contribute greatly to further development of the Russian Repo market” – said Alexey Akinshin.