Thursday, February 5

Market Regulation and Practice: Restoring Confidence

The credit crunch and global market sell-off in autumn 2008 hit Russia particularly hard, exposing severe strains in the functioning of the country’s financial markets. Domestic and international investors were confused by an apparent lack of coordination between the main exchanges, the RTS and MICEX, and the regulator. Many investors argued that frequent market halts exacerbated price declines and forced trading in Russian stocks offshore. Russia significantly underperformed its emerging market peers, evoking comparisons with the 1998 crisis despite Russia’s high growth rates, huge reserves and the government’s willingness to make a significant part of these reserves available to the financial sector and wider economy.

What lessons have been learned and what can international best practice teach Russia? Does the upheaval of recent months now present an opportunity to streamline and strengthen a market and regulatory structure that has developed since the early to mid-1990s?

Peter Derby, Chairman, CreditStar

Roman Goryunov, Chief Executive Officer, RTS Stock Exchange
Peter Elam Hakansson, Chairman of the Board of Directors, East Capital Asset Management
Rainer Riess, Member of the Management Board, Frankfurt Stock Exchange, Managing Director Cash Market Development, Deutsche Borse
Alexei Rybnikov, Chief Executive Officer, MICEX Stock Exchange
Benn Steil, Director of International Economics, Council of Foreign Relations
Alexey Timofeyev, Chairman, NAUFOR