Rus News Journal

Russian and World News

the fear Factor
Latest developments have shown that the Russian share market is extremely dangerous to the investor. It is possible to congratulate the state on it, which for ten years of existence of the market and has not thought up what to do to the client in case of occurrence of troubles at its broker.

the Stock market from the point of view of the investor happens is very boring. And at times it is a pity to me of colleagues - the TV reporters saying in planned reviews of a phrase on duty about 1,5 - percentage growth of quotations which ostensibly still should mean something in the macroeconomic plan. Actually all understand that these plus - a minus of 1,5 % mean nothing. At the same time in these stagnant the periods in the market occur at times surprising events. Language does not turn to name them dismantlings - so respectable and economically well-founded reasons stand up for participants of an event.
last week Federal Commission on Securities once again decided destiny of the largest stock exchange of the country of RTS and one of the largest brokers - the companies Alor - Invest . Non-observance of standards of Federal Commission on Securities and failure to meet requirements of the federal legislation was incriminated to both structures. The stock exchange, under the Federal Commission on Securities version, supplied the information on transactions in a wrong format, for what it was threatened with stay of the licence, variety not absolutely clear (in sense - not cleared for general public) charges on which basis the licence to it have suspended in February has been shown the company.
the Federal Commission on Securities verdict has appeared a little strange. RTS has received two months on elimination of infringements (plus by that month that already gave to it), though the commission and recognised that has already received documents on elimination of these infringements. Alor - Invest has first received the indulgence: to it have renewed all four licences: on management of actives, depozitarnuju, broker and dealer activity. However at once after that it has been decided to suspend licences for broker and dealer activity for month, as during the next check at Alor have found new infringement - a manipulation the prices.
it is formal state body actions are logical: we see infringement - it is stopped it. And, to tell the truth, within the limits of the given heading it would not be desirable to discuss at all, whether really were in actions of the company and a stock exchange of infringement and whether so they are serious to deserve stay of action of licences. Much more important another. The described stories have revealed the main line of our stock market: a devil-may-care attitude to investors.
it is valid, licence withdrawal from the broker or a stock exchange is first of all blow on clients. Imagine, for example, that the investor conducts active game, it has open positions on a number of papers, and here it is spoken: everything, the licence is suspended, finish work. I will underline that in the present state of affairs the Federal Commission on Securities has still arrived, as one familiar broker, " was expressed; on - bozheski - the decision on licence stay Alor has come into force in two days after acceptance so clients at least had time to close a position and to translate accounts. But it, of course, did not guarantee them from off-schedule losses from carrying out of similar operations. Therefore at once there was a question: and how interests of investors basically are considered at occurrence of similar situations? What to do by that who has suffered losses with whom to demand compensation? And by close examination of stories with Alor and RTS it has unexpectedly appeared, what there is nobody. Similar mechanisms neither in the legislation, nor in Federal Commission on Securities statutory acts are not worked.
strange the situation turns out. The state speaks to the private investor: Direct access on the market to you is closed, work through the professional participant as it all is able to do correctly and under the law, a guarantee of that is presence at it the licence. But time so logically and the state should bear responsibility for the activity on licensing, differently at the investor arises a question, what for all this difficult enough infrastructure of the market in general is necessary.
I will underline: under a word responsibility it is understood not that the state should be responsible for actions of each licensed professional participant, - break the law everybody can. But here to develop accurate system of compensatory measures for investors on a case of troubles at the broker or a stock exchange it is necessary. And it is desirable at level of the law or as a last resort the Federal Commission on Securities statutory act.
such system, naturally, is not obliged to guarantee to the investor of a full indemnification of losses. But everyone should know that it will receive in case of a crisis situation. It is possible to speak, for example, about lacks of the similar system operating in bank sector, but there it exists, and creditors know the rights. And if the Central Bank can enter acting administration into problem banks why Federal Commission on Securities not to do the same - introduction of acting administration before elimination of infringements at the broker could allow to avoid deprivation of the licence and to give the chance to clients to work easy.
while such mechanisms are not present, to work in the market simply terribly. As a case with Alor not individual - for last year two more large companies were that is called, on the verge . And the state instead of finishing this fear, seemingly, only forces it. I do not know, for what reasons, but one week ago at a forum of analysts of RTS for the first time for all time of its existence official censorship has been entered. On my supervision, statements, disloyal in relation to Federal Commission on Securities leave.
PETER RUSHAJLO