05 February 2003 15:35
RUSSIA: SECURITIES COMMISSION THREATENS STOCK EXCHANGE OVER VIOLATIONS
The Federal Securities Commission (FKTsB) has threatened to withdraw the RTS Stock Exchange's license for a
failure to distinguish between directed and nondirected orders in calculating volume, "Kommersant" reported on
30 January. (A "directed" order applies to a specific exchange participant, whereas a "nondirected"
order is open to all exchange participants.) A 1 July 2002 resolution stipulates that directed orders are to be
distinguished from nondirected orders in calculating stock-exchange volume. The RTS failed to do so in its report for
the fourth quarter of 2002. The FKTsB's actions struck some brokers as extreme. In the "classic market"
structure adopted by the RTS, distinguishing directed from nondirected orders can be "quite difficult,"
"Vedomosti" reported on 30 January. While brokers suggested regulators were making a mountain out of a
molehill, the FKTsB gave every indication of being deadly serious. FKTsB member Pavel Ivanov told "Vremya
novostei" on 30 January, "If the exchange president can't convince us that everything's on the up
and up, the FKTsB will examine the option of revoking their license." For their part, RTS representatives promised
to make every effort to work with regulators and fix the problem by the FKTsB's 5 February deadline. DK Copyright
(c) 2003. RFE/RL, Inc. Reprinted with the permission of Radio Free Europe/Radio Liberty
[AIW [Asia Africa Intelligence Wire]] |
RUSSIA IN FACTS
