Rus News Journal

Yesterday became a purgatory for the market

Having rummaged in the exchange auctions by securities participants of the market used for rasshivki chains of non-payments in the market repo. The general director of stock exchange of the Moscow Interbank Stock Exchange ALEXEY RYBNIKOV is assured that the majority of transactions has been executed and today to stop trading session it is not necessary.
- the Stop of the basic auctions on one and a half day really was so is necessary?

- the Auctions have been suspended that to embroider the collected canopy of transactions repo which, since Monday, have entered into a stage of active default. On Monday the volume not executed repo has made nearby 7 mlrd rbl. On Tuesday this figure has grown and has made some tens mlrd rbl. On Wednesday to execution there were transactions in volume more than 100 mlrd rbl. Yesterday in the morning volume of transactions to execution exceeded 50 mlrd rbl. only for September, 18th. FSFR has made decision not to hold the auctions to damp an ardour of participants of stock market, to suspend automatic execution of feet - lossov, marzhin - kollov, not to admit reaction to an external negative.

- but the auctions in the market repo have been on Wednesday evening renewed...

- Evening session repo on Wednesday - our standard procedure in the event that in the morning they have been opened. The decision to open the market repo on Thursday was necessary to realise stabilisation decisions of the financial authorities, having provided granting of additional liquidity on stock market, to give the chance to participants to concentrate on execution of transactions and calculations, to embroider chains of non-payments.

- the auctions in the market repo passed yesterday under the usual scenario?

- They passed according to the scenario which has been developed as a result of a series of meetings in Bank of Russia and FSFR with participation of the basic counterparts on Wednesday. Through the State Banks and in an address mode on the market liquidity has arrived. Yesterday on 20. 30 Moscow time the volume of the executed and prolonged transactions repo has exceeded 350 mlrd rbl. the Most part of not executed transactions repo, the auctions existing at the moment of opening, has been executed. There was a part of transactions which stock exchanges by rules can be executed today. In my opinion, there is no necessity to establish today the special periods to close these transactions.

- as the mechanism started yesterday rasshivanija transactions repo works?

- For execution of transactions repo there should be money and actives. Liquidity addition in system, first of all, through the State Banks, has given the chance to execute obligations on a chain. Then following the results of day clearing session which definitively and reveals not executed obligations is spent.

- whether you can estimate approximately number of counterparts under not executed transactions?

- it is a lot of formally such counterparts, but the basic volume is concentrated in narrow quantity of counterparts - less than ten banks and the financial companies had serious problems with execution. Owing to that the problem has been localised in a small amount of the organisations, we could tochechno solve it.

- whether all counterparts can close now not executed obligations under transactions?

- Participants of the market give money on the security of actives. If someone from participants of the market as a result of the falling market remained without money, and all its papers zarepovany, anybody will not give money to it. In this sense yesterday became a purgatory for the market. Losses in this or that form, possibly, will incur many, but the basic is a number survived. I hope, it will be greatest possible. Anyway all of us have received a rigid lesson of risk - to management.

the Today`s situation has accurately shown that the central counterpart who would act as the party under the transaction or obligations for other participants of the market is necessary for the Russian market. Even if someone has not put something to the central counterpart or has not paid, the central counterpart will execute the obligations to the diligent participant. For example, in the European market at the expense of presence of the central counterpart even requirements of counterparts of gone bankrupt bank Lehman Brothers have been executed.

- whether repetition in the market of strong fluctuations, how on Tuesday and environment is possible today?

- In the conditions of such market to give predictions - business ungrateful. The state declared and could realise enough measures on liquidity maintenance. The most part of not executed transactions repo has been embroidered - now participants do not have necessity to sell a paper at any prices to carry out of obligations.