Bank of Russia increases key rate by 100 bp to 13.00% p.a.

The Bank of Russia Board of Directors decided to increase the key rate by 100 basis points to 13.00% per annum. Inflationary pressure in the Russian economy remains high. Significant proinflationary risks have crystallised, namely the domestic demand growth outpacing the output expansion capacity and the depreciation of the ruble in the summer months. Therefore, it is required to additionally tighten monetary conditions to limit the upward deviation of inflation from the target and return it to 4% in 2024. The return of inflation to the target and its further stabilisation close to 4% also implies that tight monetary conditions will be maintained in the economy for a long period.

Voting results on the size of the key rate in ACI Russia social networks

This time the range of opinions is very wide for a scheduled meeting. Various signals have been received since the last unscheduled one. The international community is more inclined to the fact that the rate will not be changed, the Russian one that there will be an increase.

DEALER'S FESTIVAL 2023

On August 17, 2023, the default of 1998 turned 25 years old! On this occasion, ACI Russia gathered more than 400 guests, friends and partners at the traditional meeting of the interbank and financial community – Dealer's Fest.

The program of the evening turned out to be very interesting and rich! Three musical groups of different styles and directions, a presentation of sculpture and own smell of the event, contests and prizes from leading dealers, karaoke and disco with hits of 1998 and 2008. Thank you for being with us on this significant date!

Bank of Russia increases key rate by 350 b.p. to 12.00% p.a.

The Bank of Russia Board of Directors decided to increase the key rate by 350 basis points to 12.00% per annum from 15 August 2023. The decision is aimed at limiting price stability risks.

The Bank of Russia Board of Directors will hold a meeting to discuss the level of the key rate

Both ACI members and a wider circle of market participants believe that at an extraordinary meeting of the Board of Directors of the Bank of Russia, the rate will be raised to around 10.0% per annum, while the professional circle is more restrained in its forecasts

Risk overview of financial markets

From August 1, 2023 to January 31, 2024 the Bank of Russia in addition to regular operations under the budget rule, will sell yuan worth 2.3 billion rubles daily. The "RISK REVIEW OF FINANCIAL MARKETS" for July 2023 has been published

ACI Russia has taken the initiative to hold the 25th anniversary of the Dealer's Day together with MMVA

A corresponding letter was sent to the President and the Council of the Moscow International Monetary Association to make this year's dealer holiday outstanding and unforgettable. "We believe that now, more than ever, all market participants need unity and holding a common dealer holiday would benefit the members of both our organizations," the letter says.

The full text can be found at the link below

And we are waiting for everyone on the Loft Boat on August 17 at 19:00. Details and registration are here

Bank of Russia increases key rate by 100 b.p. to 8.50% p.a.

On 21 July 2023, the Bank of Russia Board of Directors decided to increase the key rate by 100 basis points to 8.50% per annum. Current price growth rates, including a variety of underlying indicators, have exceeded 4% in annualised terms and are still on the rise. The increase in the domestic demand surpasses the capacity to expand production, including due to the limited availability of labour resources. This reinforces persistent inflationary pressure in the economy. Inflation expectations have risen. Domestic demand trends and the depreciation of the ruble since the beginning of 2023 significantly amplify proinflationary risks. The Bank of Russia's monetary policy will curtail inflation's upward deviation from the target and is aimed at bringing inflation back to 4% in 2024.

Bank of Russia key rate survey

Opinions have quite strongly split and divided, concentrating around a rate increase of 50 bps. Attention is drawn to the fact that the responses of the Russian professional part of the community are more inclined to the rate of 8.5%, while the international one to 8.0% at the meeting on Friday

DEALER'S FEST 2023. 25 YEARS OF DEFAULT!

On August 17, the financial community recalls the events of 1998, when Russia defaulted on the main types of government securities. On this date, a new era of the Russian financial market began. Those who "survived" received a harsh lesson in proper risk management, the importance of trust and the need for proper development of public finances. And in 2023 we are celebrating our 25th anniversary!

Venue: Loft Boat (Moscow)
Route: from the berth of the Northern River Station along the Moscow Canal and back
Time: Thursday, August 17th. At 19:30 the ship sails, do not be late!
At 24:00 we will return to the Northern River Station
There will be no stops along the trip

And don't forget to capture the good market mood!

Launch of the Global Cryptoasset Standards

We are pleased to inform you that, today, the Global Cryptoasset Standards have been launched by GBBC Digital Finance (GDF).

The Standards are a code of conduct for financial institutions engaging in intermediation activities such as brokerage, custody, and settlement of cryptoassets like bitcoin and Ethereum.

This document was inspired by global best practice industry standards and codes, such as the FX Global Code, and it offers robust industry best practices to ensure regulated firms meet the highest standards of conduct when handling cryptoassets.

ACI FMA, as a participating member of the Global Financial Institutions for Cryptoassets Working Group that took the leading role in the concept, development and implementation of these Standards, is extremely proud to have collaborated on these important guidelines for all Market Participants in the Cryptoasset Market.

How can a retail investor distinguish high-quality financial analytics from low-quality

The Association of Financial Analysts (AFA) and the National Financial Association (NFA) have jointly created a checklist for retail investors, which will help distinguish high-quality financial analytics from low-quality ones.

ACI Russia has prepared recommendations for the Code of trading participants on MOEX

ACI Russia, together with the Moscow Exchange working group on the Code of Conduct, has prepared recommendations to market participants to minimize currency exchange rate fluctuations.

The Code has a recommendation character. At the same time, taking into account the importance of the purpose of the Code, MOEX encourages Organizations to join the Code and strive to carry out their activities in the financial market in accordance with the principles of the Code. To join the Code, it is necessary to send a signed Declaration of Accession to the Code to the Department for Internal Control and Compliance of PJSC Moscow Exchange.

Bank of Russia keeps the key rate at 7.50% p.a.

The Bank of Russia Board of Directors decided to keep the key rate 7.50% per annum. Current price growth rates, including the stable indicators of inflation, continue to increase. Inflation expectations of households and businesses' price expectations remain high. Economic activity is rising faster than the Bank of Russia's April forecast assumed, which in large measure reflects a strong rebound in domestic demand. Accelerating fiscal spending, deteriorating terms of foreign trade and the situation in the labour market remain pro-inflationary risk drivers. The overall balance of inflation risks has tilted even more to the upside.

ACI Russia's сommunity voting on the key rate

This time we conducted a separate survey on the rate in the closed group ACI Russia, which consists only of members of the community, and in a broader public group.

In general, the prevailing professional opinion on both sides of the borders of the Russian Federation is that the RUB rate will be maintained at the current level.

It is noteworthy that the range of solutions offered by the public group is much wider and has less concentration on the current rate.

Moscow Exchange trading schedule in June 2023

Moscow Exchange announces the trading schedule for its markets in June 2023.

The Moscow Exchange Equity & Bond, Money, Derivatives, FX and Precious Metals Markets will be closed for trading and settlement on the holiday weekend of 12 June 2023.

ACI Russia Congress 2023

More than 120 members, friends and guests of the Association gathered at the ACI Russia evening event at the ART COURT Moscow Center Hotel.

During the Congress, ACI Russia President Evgeny Egorov and ACI Russia Vice President Dmitry Piskulov made a report on the work of the Association's Board and management for the year, and also presented ACI Russia's plans for future periods. According to the results of the voting of the members of the Association present, the work of the Council was recognized as satisfactory and unanimously supported by the delegates of the Congress.

The next presentation was an interview with Evgeny Egorov, President of ACI Russia, with Valery Lyakh, Director of the Bank of Russia's Department for Countering Misconduct. Evgeny tried to accumulate all the issues of concern to market participants, and the interview turned out to be lively and very relevant. They also touched upon the use of AI in financial markets and, in particular, in the work of the Bank of Russia itself.

Roman Loktionov, Director of OTC Derivatives at the MOEX, spoke in detail about the instruments of the SPFI market for Chinese yuan. The participants of the Congress also discussed the use of artificial intelligence in the financial market, future trends and forecasts, the most incredible developments until 2050. Panel moderator Pavel Pikulev (CEO EMCR.io ) invited leading analysts: Egor Susin (Gazprombank), Viktor Tunev (@Truevalue), Mikhail Vasiliev (Sovcombank), Valery Weisberg (IK Region), Anton Tabakh (Expert RA) to participate in the foresight game and speculate on the future of the economy, and everything humanity as a whole!

At the end of the official part, all the guests were waiting for a cocktail and irreplaceable communication on the sidelines, as well as gifts from the partner of ACI Russia Congress 2023 – the supplier of natural coffee LES COFFE. Sovcombank also pleased the guests of the Congress with original magazines with comics about financial markets.

ACI FMA Insights Nº 8

The 8th edition of ACI FMA Insights Newsletter has been launched and it's now available!

This new edition is dedicated to the ACI FMA Spring Meetings and the 31stACI FMA Croatia General Assembly and Financial Markets Conference 2023, which will take place in Zagreb from 16th to 19th May. Additional details and much more can be found in the column that Mario Kolinski, ACI Croatia President shared with us. Please also visit the Congress website for more details: https://acifma.hr/zg2023-en/

In this edition, you can also find the contribution of John K. Estrada, ACI FMA Chair of FX Committee, the detailed vision of Rui Correia, ACI FMA Executive Director and Chair of the Board of Education, on the importance of continuous training, certification, good practices and the numerous possibilities that the ELAC platform offers to financial market participants, as well as the joint welcome message from Stéphane Malrait, ACI FMA Chairman and Kim Winding Larsen, ACI FMA President.

The objective of the Newsletter is to bring news and updates from ACI FMA activity to all our global ACI members.

ACI FMA are longstanding proponents and influencers of ethical conduct and good market practices to all financial market professionals.

ACI Russia Congress 2023 - start of application acceptance!

We are pleased to announce that we are starting registration for the 19th Congress of Members and Friends of the Association - ACI Russia Congress 2023!

May 18, 2023 (Thursday) at the ART COURT Moscow Center Hotel we are waiting for you at 17:00.

ACI Russia has been holding general meetings of the organization annually since its foundation in 2004. This event is not just a formal event, but also a traditional meeting place for the Russian dealer community. The Association continues to focus on representing and protecting the interests of financial market specialists, promoting mutual understanding and education based on professional ethics, strengthening international relations, developing innovation and market initiatives, conducting a dialogue with the regulator and providing its professional expertise.

This year's program includes a report by the President of the Association Evgeny Egorov, a speech by a representative of the regulator, a discussion by leading analysts and experts and, of course, irreplaceable networking with colleagues and informal communication.

Bank of Russia keeps key rate at 7.50% p.a.

The Bank of Russia Board of Directors decided to keep the key rate at 7.50% per annum. Current rates of price growth have increased since late 2022 but remain moderate, including in the stable components of inflation. Inflation expectations of households are down. They nevertheless remain elevated, as do businesses' price expectations. Economic activity is rising faster than the February forecast of the Bank of Russia assumed. This reflects both an expansion in domestic demand and the ongoing processes of transformation of the Russian economy. Accelerating fiscal spending, deteriorating terms of foreign trade and the situation in the labour market continue to pose pro-inflation risks. The overall balance of inflation risks has remained essentially the same since the previous Board meeting.

A survey of ACI Russia experts before the decision of the Bank of Russia on the key rate

The consensus, in general, remains. The Bank of Russia, if it does not want to, will not make a surprise for the market. The bid will remain unchanged

Moscow Exchange trading schedule over May holidays

Moscow Exchange announces the trading schedule for its markets for public holidays in Russia in May 2023.

On 8 May, a public holiday, the markets will operate as follows:

• the Equity and Bond, Money, Deposit, Credit and Derivatives Markets will trade as usual;
• the FX and Precious Metals Markets will trade all instruments, except for spot transactions settled on the trade date (TODAY settlement) and overnight swaps;
• OTC transactions with the central counterparty (CCP) in the Standardised OTC Derivatives Market (SPFI) will be settled for all instruments, except for SPFI contracts involving obligations denominated in Russian roubles.

On 28 April, 2-5 and 10-12 May 2023, which are official working days, the Equity and Bond, Money, FX, Precious Metals, Derivatives and Standartised OTC Derivatives Markets will trade as usual.

On 29–30 April, 1 May, 6–7 May and 9 May 2023, all MOEX markets are closed.

Bank of Russia keeps key rate at 7.50% p.a.

The Bank of Russia Board of Directors decided to keep the key rate at 7.50% per annum. Current rates of price growth remain moderate, including in the stable components of inflation. Inflation expectations of households are down significantly but remain elevated, as do businesses' price expectations. High-frequency data suggest that a recovery in business and consumer activity is ongoing. Accelerating fiscal spending, deteriorating terms of foreign trade and the situation in the labour market continue to pose pro-inflation risks. The overall balance of inflation risks has remained essentially the same since the previous Board meeting.

Experts are unanimous on the eve of the decision on the key rate of the Bank of Russia

According to the survey results, an ideal picture turns out: according to all analysts, the Bank of Russia will definitely leave the rate unchanged. At the same time, if some participants were in the place of the Board of the Bank of Russia, then one person would raise it by 50 bps, and one person would lower it by the same 50 bps. We are waiting for a decision tomorrow

Bank of Russia establishes International Settlements Department

A new structural unit — the International Settlements Department — has been created at the Bank of Russia on 15 February 2023.

The Department will deal with issues that have become especially relevant in view of Russia sanctions. These issues include the development of correspondent relations between Russian banks and their counterparties from friendly countries, transition to settlements in national currencies, as well as the expansion of opportunities for cross-border transactions.

The new department is headed by Mikhail Kovrigin, the former director of the Financial Market Strategy Department.

In addition, a decision was made to establish from 15 February 2023 the Department for Cooperation with International Organisations on the basis of the International Cooperation Department, which, in turn, will be abolished before 1 September 2023.

Bank of Russia keeps key rate at 7.50% p.a.

The Bank of Russia Board of Directors decided to keep the key rate at 7.50% per annum. Current price growth rates are increasing, remaining moderate in terms of sustainable components. Inflation expectations of households and businesses edged down but remain elevated. Economic activity trends evolve better than the Bank of Russia's October forecast. Although households' consumer behaviour is still cautious, there appear signs of recovery in consumer activity. Accelerating fiscal spending, deteriorating terms of foreign trade and situation in the labour market intensify pro-inflation risks.

Bank of Russia key rate - a survey of experts

This time, there is 100% market confidence in keeping the rate at the current level, although if some participants were in the place of the Central Bank, they would take a step towards lowering it

Moscow Exchange trading schedule in February 2023

Moscow Exchange announces the trading schedule for its markets over the February 2023 public holiday period.
23 February 2023 is a non-trading day on all MOEX markets.

On Friday, 24 February 2023, the markets will operate as follows:

• The Equity and Bond, Deposit and Credit and Derivatives Markets will trade as usual;
• The FX and Precious Metals Markets will trade all instruments, except for spot transactions settled on the trade date (TODAY settlement) and overnight swaps; and
• OTC transactions with the central counterparty (CCP) in the Standardised OTC Derivatives Market (SPFI) will be settled for all instruments, except for SPFI contracts involving obligations denominated in Russian roubles.

ACI FMA Spring Meetings: Zagreb, 16-18 May

As announced, ACI FMA is pleased to confirm that the 2023 Spring Meetings will be held in Zagreb, from 16th to 18th May.

For the first time, ACI Croatia will be welcoming the ACI FMA community and hosting the ACI Spring Meetings, which will be followed by the ACI FMA Croatia Annual Assembly and Financial Markets Conference, on the 19th of May.

Save the Date and join us in Croatia! We are currently working on the Agenda and will be updating this topic regularly. Please stay tuned.

Discover the preliminary programme below

The implementation of the projects INTERBANK and DIPLOMACY has begun

In the context of the termination of correspondent and counterparty relations of Russian commercial banks, including those that have not been sanctioned, with banks of unfriendly countries, the implementation of the projects "Interbank" and "Diplomacy" has begun to facilitate the establishment of new correspondent, counterparty, social and cultural relations of the community of specialists of the Russian financial market with the relevant communities of neutral countries.

The main objectives of the projects are to develop contacts with national organizations of the International Association of Financial Market Specialists ACI Financial Markets Association (ACI FMA) and the diplomatic services of the respective countries, the organization of negotiations on the establishment of direct interbank correspondent relations in national currencies, primarily with banks in China and the UAE.

According to the procedure published by the Ministry of Finance of the Russian Federation, on 13 January 2023, the Bank of Russia will resume FX buy (sell) operations in the domestic FX market as part of the Ministry's fiscal rule mechanism.

These operations will be performed in the Moscow Exchange FX Market for CNYRUB_TOM instrument.

In order to minimise the impact of the above operations on the exchange rate dynamics, the Bank of Russia will buy (sell) foreign currency in the market evenly throughout every trading day of the month.

The Bank of Russia's approaches to its monetary policy will remain unchanged under the fiscal rule mechanism. The Bank of Russia retains the option to conduct operations in the FX market to maintain financial stability.

Happy New Year from ACI Russia

Dear friends!

We wish you a happy New Year and hope that we will all be able to realize our own plans, hopes and dreams!

In the outgoing year, we were able to continue working on important projects of ACI Russia: education, weekly analytical broadcasts "Pro Markets", clarification of the methodology for calculating official rates for the Bank of Russia, additional translation of the FX Global Code, to preserve and strengthen the efficient team of the management and members of the Association.

We will dream of prosperity, hope for peace and plan to hold a Congress, a Dealer's Festival and the eFX Summit in 2023! And make every effort to increase the value of our community of professionals for each of you!

May the upcoming holidays be a time of peace and personal happiness. See you again in 2023!


Vice President of ACI Russia Dmitry Piskulov
President of ACI Russia Evgeny Egorov

The final Council of ACI Russia was held this year. It approved the schedule of the Association's traditional events for 2023. Add dates to your calendar so you don't miss it!

We had ACI Russia & Friends New Year party 2023

At a festive New Year's party on Monday, December 19, 2022 at the Mandarin Combustible bar, the regional public organization of financial market professionals ACI Russia summed up the results of the year and announced the winner of the Bank of Russia's key rate forecast contest for 2022.

More than 130 guests – members and friends of ACI Russia were gathered by the Mandarin Bar. The traditional greeting of Father Frost, the string quartet of classical music "Gloria", the performance of the soloist of the group "Flight School" with original songs with guitar, professional company and pleasant communication – ACI Russia thanks everyone for their support in 2022!

The President of the Association Evgeny Egorov personally noted one of the leaders of the regular ACI Russia forecast contest on the decision on the key rate of the Bank of Russia – Nikolay Panyukov (Centrocredit Bank), as well as the most active participants in the weekly PRO MARKETS – ACI RUSSIA calls - Egor Susin (Gazprombank) and Viktor Tunev (Ingosstrakh Investments).

ACI Russia was founded in 2004, is affiliated with the international ACI FMA and currently unites more than 400 people who are professional participants in the financial market, acts as an independent expert platform of the currency and money market and organizer of events. The news feed, survey results and information about past and future events can be found on the website www.acirussia.org or in the social networks of the Association.

The Bank of Russia keeps the key rate at 7.50% p.a.

On 16 December 2022, the Bank of Russia Board of Directors decided to keep the key rate at 7.50% per annum. Current consumer prices are growing at a moderate rate, and consumer demand is subdued. Inflation expectations of households and businesses, essentially unchanged, remain elevated. At the same time, pro-inflation risks are up and prevail over disinflationary risks. This comes as a result of rising inflation pressures from the labour market, worsening foreign trade conditions and a softer fiscal stance.

ACI Russia Council was held online

On Thursday, December 8, the next ACI Russia Council was held. You can find the minutes at the link below

The final survey on the Central Bank rate this year

Market participants are absolutely unanimous that the Bank of Russia will leave the rate unchanged. If they made the decision themselves, it would, on average, be slightly lowered

The New Version of the Global Precious Metals Code has been Launched

Important news for all Market Participants in the Precious Metals Market

As previously announced, the London Bullion Market Association (LBMA) has been working with industry stakeholders, such as ACI FMA, in the revision of the Global Precious Metals Code that was initially launched in May 2017 (for that purpose, two Public Consultations were launched in Q3 and Q4 2022).

Today, the LBMA publicly announced the launch of the updated version of this Code, and there is no doubt that such a document continues to reflect important guidelines that set out the minimum standards and best practices expected from Market Participants in the Precious Metals Market.

ACI FMA FX Options Course Available in ELAC

Important addition to our suite of educational products. ACI FMA would like to let you know that our new FX Options Course is now available in our E-Learning, Attestation and Certification Portal (ELAC).

We believe that this is an appropriate complement to the current educational offering from ACI FMA, so all ELAC users will now be able to benefit from the ACI FMA FX Options Course for free, as part of their current ELAC subscription and until further notice, with ACI FMA reserving the right to potentially change these conditions in the future.

This Course aims to enhance the knowledge and competence of all individual market participants to FX Options, a unique derivative product which is extremely relevant for the foreign exchange market and traded by a diversified number of market professionals working in the global financial markets.

ACI Russia & Friends New Year party 2023

ACI Russia thanks you for your support in 2022 and invites you to gather on the eve of the New Year 2023 in the bar "Mandarin Combustible"!

Registration for the event is open to ACI Russia members who have paid the membership fee for 2022, friends of ACI Russia by special invitations (we will send you a promo code).

The members of the ACI Russia Board will choose the most active participant in the regular ACI Russia voting on the rate of the Central Bank of the Russian Federation, who most accurately predicted its size in front of each Board of Directors of the Bank of Russia throughout the year. Participate and vote! You still have a chance to become a winner

Date of the event: December 19,18:30
Venue: Mandarin Combustible (Moscow, Maly Cherkassky lane 2)

ACI FMA has a new member since November 16th

Please welcome ACI FMA Palestine! It is with great satisfaction that ACI FMA would like to announce that on November 16th, at our ACI FMA Council meeting held in Paris, ACI FMA Palestine was unanimously voted and accepted as the newest member of ACI FMA.

Evolution of digital asset market in Russia: public consultation report

The Bank of Russia proposes to discuss the possibility of circulating digital assets at exchange trading, harmonising approaches to their taxation with traditional financial instruments, conditions for acquiring digital assets by individual institutional investors, establishing the accounting procedure for such investments, as well as opening the domestic market for foreign issuers from friendly countries. These and other initiatives are included in the regulator's report for public consultation.

Monetary Policy Guidelines for 2023–2025

The Bank of Russia has published the Main Directions of the unified state monetary policy for 2023 and the period 2024 and 2025.

In this strategic document, the Bank of Russia explains its approaches to monetary policy in the changed economic conditions, and also presents basic and alternative scenarios for the development of the economy for the next three years.

Global Diversity Awareness Month Series

As part of the Global Diversity Awareness Month Series, we invite you to click and access the third and last interview.

To conclude our celebration and support of Global Diversity Awareness Month, ACI UK and ACI FMA are delighted to share the third in its series of interviews, recorded with prominent female leaders in the financial markets, discussing diversity in our industry in 2022.

In this third conversation, ACI UK Executive Committee and ACI FMA FX Committee member Sam Horowitz sat down with Ozgun Unal, Executive Director and Head of eFX Distribution UK at UBS to talk about "Being a Supportive Partner for Diversity and Inclusion within the Markets Community".

Moscow Exchange launches trading in Kyrgyz som and Tajik somoni

MOEX continues to develop tools in national currencies and plans to start trading in the currency pairs "Kyrgyz som – Russian ruble" (KGS/RUB) and "Tajik somoni – Russian ruble" (TJS/RUB) from October 31, 2022.

The Bank of Russia keeps the key rate at 7.50% p.a.

On 28 October 2022, the Bank of Russia Board of Directors decided to keep the key rate at 7.50% per annum. Current growth rates of consumer prices as a whole remain low, contributing to a further slowdown in annual inflation. Inflation expectations of households and businesses are high and have slightly grown relative to the summer months. The updated forecast assumes inflation for the end of 2022 to total 12.0–13.0% and takes into account the preponed indexation of utility prices among other factors. The Bank of Russia assesses that the partial mobilisation will serve as a deterrent to consumer demand and inflation over the horizon of coming months. However, its subsequent effects will be pro-inflationary as it adds to supply-side restrictions.

On the eve of the decision on the rate

Most market participants believe that the Bank of Russia will leave the key rate unchanged and the range for decisions is quite narrow. Attention is drawn to the fact that if they made the decision themselves, they would be more inclined to lower the rate

Global Diversity Awareness Month Series

As part of the Global Diversity Awareness Month Series, ACI FMA is please to announce that the second conversation is now available.

To continue our celebration and support of Global Diversity Awareness Month, ACI UK and ACI FMA are delighted to share the second in its series of interviews, recorded with prominent female leaders in the financial markets, discussing diversity in our industry in 2022.

In this second conversation, ACI UK Vice President Katharine Leaman sat down with Klaudia Gorczyca, CEO and Founder of Dialogue Age, to talk about Inclusivity and Equal Opportunities in the Financial Markets.

Please take some time to view the inspiring and interesting dialogue of this noteworthy contribution.

Our sincere thanks to Klaudia for kindly sharing her views and insights and allowing us to share them with you.

2022 ACI World Congress

The 60th ACI World Congress will take place in Paris at the Palais Brongniart on Thursday 17th November 2022 in partnership with The Full FX.

This year's theme is Defining The Future of Financial Markets and we are planning a fantastic lineup of speakers.

Updates on this event will be posted regularly on www.acifma.com

Global Diversity Awareness Month Series

ACI FMA celebrates Global Diversity Awareness Month with special conversations.

To celebrate and support Global Diversity Awareness Month, ACI FMA and ACI UK are delighted to share a series of interviews recorded with prominent female leaders in the financial markets to discuss diversity in our industry in 2022.

As a global financial markets association, ACI FMA recognize that today, more than arguably at any time, supporting market participants to adhere to principles of ethical conduct means a focus not solely on enhancing best market practice but also on being an advocate for the sorts of cultural change we need to see.

For our first conversation ACI UK Committee Member Noel Singh sat down with Jasmin Fellner-Bozdag, Director, Head of eFX Sales EMEA at BNY Mellon to explore diversity, equal opportunities and how the employment landscape has changed in the banking industry.

It's a fascinating and important discussion. We hope you enjoy and our deepest thanks to Jasmin for so kindly sharing her thoughts and insights with us and allowing us to share them with you and your ACI members.

The Global Precious Metals Code is under review

ACI FMA has decided to show its strong appreciation to the London Bullion Market Association (LBMA) for leading the current review of the Global Precious Metals Code, as well as for allowing ACI FMA to provide feedback to the Initial and Final Public Consultations included in that review.

Moscow Exchange trading schedule 2023 holidays

Moscow Exchange announces the trading schedule for its market for 2023 public holidays.

On 3-6 January, 24 February, 8 May and 6 November 2023, the FX, Precious Metals, Equity and Bond, Deposit, Credit, Derivatives and OTC Standardised Derivatives Markets will be open.

On the above dates, the FX and Precious Metals Markets will trade all instruments, except spot transactions settled on the trade date ("today" settlement) and overnight swap transactions.

On official public holidays on 1-2 January, 7 January, 23 February, 8 March, 1 May, 9 May, 12 June and 4 November 2023, all Moscow Exchange markets will be closed.

On all other days in 2023, the markets will operate as usual.

Bank of Russia develops additional procedures for setting official foreign exchange rates

The Bank of Russia has developed additional procedures for setting official exchange rates of foreign currencies against the ruble to reflect the situation in the markets more accurately. Exchange rates will be set based on data from extra alternative sources such as bank reporting and OTC platforms.

The Bank of Russia has prepared a draft ordinance on making appropriate amendments to the procedure for calculating and publishing official foreign exchange rates.

Review of the Global Precious Metals Code

The Global Precious Metals Code is currently being reviewed by the LBMA.
In August 2022, ACI FMA has launched a temporary Working Group with the objective of collecting feedback from our members on the proposed review of the Global Precious Metals Code which has been undertaken by the London Bullion Market Association ("LBMA").

On the procedure for trading the British pound

Since October 3, 2022, trading in the British pound has been suspended on the foreign exchange market of the Moscow Exchange. The restrictions will affect spot and swap instruments for the British pound – Russian ruble (GBPRUB) and British pound- US dollar (GBPUSD) currency pairs in exchange and over-the-counter modes.

Bank of Russia cuts key rate by 50 bp to 7.50% p.a.

Bank of Russia Board of Directors decided to cut the key rate by 50 basis points to 7.50% per annum. Current consumer price growth rates remain low, contributing to a further slowdown in annual inflation. This is due to both the influence of a set of one-off factors and subdued consumer demand. Developments in business activity are better than the Bank of Russia expected in July. However, the external environment for the Russian economy remains challenging, invariably putting significant constrains on economic activity. Inflation expectations of households and price expectations of businesses remain elevated.

Rate forecasts

The market is waiting for a rate cut of 50 basis points to 7.50%, a third of those who voted believe that in the current situation it is possible to act more proactively and reduce the rate to 7.00% per annum.

Settlement period: international transactions with cryptocurrencies can be launched in 2023

International transactions with cryptocurrencies may begin as early as next year. This was told to Izvestia by the Director of the Financial Stability Department of the Ministry of Finance Ivan Chebeskov, the information was confirmed by the Head of the State Duma Committee on the financial market Anatoly Aksakov. According to him, the business itself will choose which cryptocurrency to trade in, and the MOEX and SPB Exchange could conduct operations.

Moscow Exchange to add trading hours

Moscow Exchange plans to resume after-hours trading on the Equity & Bond Market, as well as pre-market trading on the Derivatives and FX Markets on 12 September 2022. This will mean trading will run for 12 hours on the FX Market, 14 hours on the Equity and Bond Markets and 15 hours on the Derivatives Market.

Results of the ACI Russia Council on 24 of August

The next Council of the Association was held in online format (Telegram messenger), at which new members of ACI Russia were accepted. However, the Council decided to abandon the ACI Russia eFX Summit this autumn due to the tense sanctions situation in the world and the absence of foreign participants.

Dealer's Festival 2022 on August, 17

On August 17, 2022, ACI Russia gathered about 300 guests on the Loft Boat at the traditional holiday of the interbank and financial community – Dealer's Fest, dedicated to the Dealer's Day - memories of the default of the Russian Federation in 1998, which determined the development of the market for many years.

Bank of Russia cuts key rate by 150 bp to 8.00% p.a.

The Bank of Russia Board of Directors decided to cut the key rate by 150 basis points to 8.00% per annum. Current consumer price growth rates remain low, contributing to a further slowdown in annual inflation. This is due to both the influence of a set of one-off factors and the subdued consumer demand. Inflation expectations of households and businesses have significantly decreased, reaching the levels of spring 2021. The decline in business activity is slower than the Bank of Russia expected in June. However, the external environment for the Russian economy remains challenging and continues to significantly constrain economic activity.

Waiting for the Central Bank's decision on the rate

The experts expressed their opinion. Most votes were given to the decision to lower the rate by 50 bp. Attention is drawn to the fact that analysts believe that the Central Bank will act more cautiously than they would have acted themselves, being in its place

ACI Russia has sent an official request from its members to the Bank of Russia

ACI Russia, at the request of professional market participants, sent an official letter to the Bank of Russia with a request to clarify the procedure for carrying out certain operations between subsidiary banks-residents of the Russian Federation and parent Head offices – residents of states that carry out unfriendly actions against the Russian Federation. The text of the letter can be found in more detail on the ACI Russia website

GFXC to Continue Work Programme: Reminds Slow Re-Adopters of FX Global Code

The Global Foreign Exchange Committee met in person for the first time since the pandemic hit on June 27-28 and agreed the work programme for the next two years, including a survey of market participants to gauge their reaction to the revised FX Global Code, published in July 2021. During the meeting, the Swiss National Bank's Andréa Maechler, chair of the GFXC, warned that the committee expects those firms yet to renew their Statement of Commitment to the revised Code to "do so shortly"

Bank of Russia cuts key rate by 150 bp to 9.50% p.a.

On 10 June 2022, the Bank of Russia Board of Directors decided to cut the key rate by 150 basis points to 9.50% per annum. The external environment for the Russian economy remains challenging and significantly constrains economic activity. At the same time, inflation is slowing faster and the decline in economic activity is of a smaller magnitude than the Bank of Russia expected in April. Recent data suggest that price growth rates in May and early June have been low. This comes as a result of ruble exchange rate movements and the tailing-off of the surge in consumer demand in the context of a marked decline in inflation expectations of households and businesses.

Moving forward, in its key rate decision-making the Bank of Russia will take into account actual and expected inflation dynamics relative to the target and economic transformation processes, as well as risks posed by domestic and external conditions and the reaction of financial markets. The Bank of Russia will consider the necessity of key rate reduction at its upcoming meetings. According to the Bank of Russia's forecast, given the current monetary policy stance, annual inflation will total 14.0–17.0% in 2022, decline to 5.0–7.0% in 2023 and return to 4% in 2024.

ACI Russia conducted a survey of the professional community on the eve of the vote on the key rate

Most analysts and market participants predict a reduction in the key rate on Friday by 100 b.p. to 10% per annum. The Russian segment is more aggressive in forecasts for rate cuts than the international one

Moscow Exchange trading schedule over June 2022 holidays

Moscow Exchange announces the trading schedule for its markets for June 2022.
On 11-13 June, the Moscow Exchange Equity & Bond, Money, Derivatives, FX and Precious Metals Markets will be closed for trading and settlement of trades due to a holiday weekend.

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A meeting of the updated ACI Russia Council was held under the leadership of the new President

The ACI Russia Council held its first meeting in the updated composition in hybrid format. On the agenda questions about the admission of new members of the Association, the organization Council work with new staff, connection with the regulator, making an event plan for ACI Russia until the end of this year and so on were raised.

Bank of Russia cuts key rate by 300 bp to 11.00% p.a.

The Bank of Russia Board of Directors decided to cut the key rate by 300 basis points to 11.00% per annum effective from 27 May 2022. The latest weekly data point to a significant slowdown in the current price growth rates. Inflationary pressure eases on the back of the ruble exchange rate dynamics as well as the noticeable decline in inflation expectations of households and businesses. In April annual inflation reached 17.8%, however, based on the estimate as of 20 May, it slowed down to 17.5%, decreasing faster than in the Bank of Russia's April forecast.

Funds continue to flow into fixed-term ruble deposits while lending activity remains weak. This limits proinflationary risks and makes it necessary to ease monetary conditions.

External conditions for the Russian economy are still challenging, considerably constraining economic activity. Financial stability risks decreased somewhat, enabling a relaxation of some capital control measures.

Moving forward, in its key rate decision-making the Bank of Russia will take into account actual and expected inflation dynamics relative to the target and economic transformation processes, as well as risks posed by domestic and external conditions and the reaction of financial markets, and holds open the prospect of key rate reduction at its upcoming meetings. According to the Bank of Russia's forecast, given the monetary policy stance, annual inflation will decrease to 5.0–7.0% in 2023 and return to 4% in 2024.

The Bank of Russia Board of Directors will hold its next rate review meeting on 10 June 2022. The Board decision press release is to be published at 13:30 Moscow time.

ACI Russia conducted a survey of experts before the extraordinary meeting of The Bank of Russia Board of Directors on the rate

The voting results of ACI Russia members show a wide range of possible decisions of the Central Bank, but, in any case, an emergency meeting seems unlikely to be convened for a slight rate cut

The voting results to the governing bodies of the Association have been aproved

The current Council of ACI Russia approved the results of voting on the election of the President of the Association and members of the Council for 2022-2024

Gaining 70.69% of the votes in FAVOR, Evgeny Egorov (Alfa-Bank) was elected as President of the Association, Dmitry Piskulov (MOEX) was elected as Vice-President of the Association for the next two years,.

According to the results of the vote of 113 members, 15 people were included in the Council of the Association for the term up to 2024:

Vladimir Borisov, OTP Bank
Kirill Vychuzhanin, Alfa-Bank
Alexey Evdokimov, NT Progress
Evgeny Egorov, Alfa-Bank
Aliya Zubkova, Otkritie
Konstantin Zyryanov, Tolyattikhimbank
Veronika Kapranova, Bank of Russia
Alexander Kiryanov, DELTA
Vladimir Kozinets, Rolf
Mikhail Nazarov, Sovcombank
Mikhail Petushkov, Unicreditbank
Dmitry Piskulov, MOEX
Anna Senina, Refinitiv
Andrey Sumin, Sberbank
Vladimir Yarovoy, MOEX

The plans of the updated management bodies of ACI Russia – The Financial Markets Association - continue to unite the community of financial market professionals, provide a platform for discussions on the topics of market development, its regulation and removal of restrictions, provide an information platform for analysts and opinion leaders.

In the next 2 weeks, it is planned to hold a meeting of the Council in a new composition and approve the action plan and goals of the Association by the end of the year.

The ACI Russia Congress 2022 was held in an online format in Zoom

Speakers at the Congress were: Sergey Romanchuk, President of ACI Russia, Head of Trading, Metallinvestbank; Dmitry Piskulov, Vice President of ACI Russia, Director, International Projects, MOEX; Pavel Pikulev, Chief Strategist for macro, FX & rates, Treasury, Sberbank; Viktor Tunev, Chief Analyst, Ingosstrakh Investments Management Company; Dmitry Polevoy, Director for investments, Loco-Invest. Evgeny Egorov, Head of Algorithmic Trading, Alfa-Bank, was elected the host of the Congress.

Sergey Romanchuk briefly spoke about the work carried out by the association over the past year, fulfilling its mission – uniting professional market participants based on commitment to common values: ethical professional code, improving the level of education and professionalism, open unifying communication. The work was organized along several lines: organizing events, working with the regulator through the The Moscow FX Joint Standing Committee of the SRO NFA, participation in the Global Foreign Exchange Committee. The peak of this work was to be the holding of the ACI FMA Global Congress in Moscow in the fall of 2022, but due to new external conditions, its holding in the Russian Federation was canceled.

Dmitry Piskulov spoke about the successful work with the Bank of Russia on changing the methodology for calculating the official ruble exchange rate and educational projects.

In the second panel, Vladimir Yarovoy shared how the MOEX is coping with current challenges and shared plans to launch new products and services and answered questions from Evgeny Egorov and the participants of the Congress.

The panel on macroeconomics, moderated by Konstantin Zyryanov, ACI Russia Board Member, Chairman of the Management Board, Tolyattikhimbank, assessed the current economic situation and made some forecasts for the future.

At the end of the Congress, they were given the opportunity to submit their candidacies to the ACI Russia Council for the next two years (its number was determined at 15 people), as well as to the posts of President and Vice President, where Evgeny Egorov (Alfa-Bank)/Dmitry Piskulov (MOEX) and Alexey Evdokimov (NTPro) /Mikhail Petushkov (Unicreditbank) were nominated. After the Congress, the procedure of electronic absentee voting on the nominated candidates was launched, the results of which will be summed up on May 25, 2022 by the election (counting) commission, which included Sergey Romanchuk (Metallinvestbank) and Andrey Skabelin (MOEX), who did not submit their candidacies to the governing bodies of the association for a new term.