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Mutual admission to placement and circulation of securities to promote exchange trade in Union countries

Mutual admission to placement and circulation of securities to promote exchange trade in Union countries


Members of the Advisory Committee on Financial Markets have considered draft Agreement on mutual admission to placing and circulating securities in on-exchange trading in the Eurasian Economic Union States as well as forming and functioning of the EAEU common financial market. The meeting chaired by Timur Zhaksylykov, EEC Minister in charge of Economy and Financial Policy, was held via videoconferencing at the headquarters of the Eurasian Economic Commission in Moscow. 


"The Agreement is aimed at ensuring free placement and circulation of equity securities in the exchange space of the Union States, ensuring mutual admission of securities from the list classified by the exchange as the highest category quotation list to on-exchange trading in other EAEU Member States,"  Timur Zhaksylykov noted. 


The Agreement will enable the Union countries’ issuers to enter any EAEU stock exchange market whereby they will have extensible access to investment resources, which will reduce funding costs for the issuers. "Therefore, without leaving its exchange market the broker provides all its interested clients with access to new investment items and the top-quality securities of the Union countries’ issuers without additional costs," Timur Zhaksylykov stressed.


It is planned to continue working on the draft Agreement taking into account the comments provided by the Union States’ authorized authorities.


The meeting attendees have also reviewed draft technical specification for studying optimum approaches to harmonizing requirements for securities prospectuses.


The Advisory Committee’s members have discussed the issue of deepening cooperation between the EEC and the Eurasian Group on combating money laundering and financing of terrorism (EAG). Challenges and threats arising in the world due to developing new technologies and the need for protecting economic systems of the Member States and the Union as a whole set new tasks before the EAEU in the sphere of combating money laundering and financing of terrorism. The Advisory Committee has supported the proposal to conclude a memorandum on deepening interaction with the EAG. 


The Russian side (the Central Bank) has presented the experience of organizing a digitized channel for selling financial products - the Marketplace system. The main project advantages include easing the situation with financial accessibility by removing geographical restrictions and providing remote access to a wide range of financial products. The product line will include bank deposits, government and corporate bonds, mutual fund units, third-party only vehicle insurance and mortgage loans. The product line can be expanded in the long term with credit, insurance, investment and other financial products. 


As advised by the Bank of Russia, the meeting attendees have discussed the need to amend the Treaty on the EAEU in terms of classifying leasing as a financial service. 


The meeting has also considered proposals to remove restrictions on the establishment and activities of entities providing mandatory bank deposit guarantees from the national lists of the Republic of Armenia and the Kyrgyz Republic as well as other issues.