During this session, participants will discuss existing regulation, the requirements of todays 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