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ACI Russia – The Financial Markets Association
Annual report 2015 by Sergey Romanchuk, President
Sergey Romanchuk, 11th ACI Russia General Assembly, 21 May 2015, Moscow
We are the Association of Choice for Wholesale Financial Markets
Participants
ETHICAL CONDUCT
Gain institutional or career value from The Model Code
The Model Code encapsulates the best possible practice of Code of Conduct in the financial
markets industry - including the latest market developments, best practice and technical advice
for practitioners.
EDUCATION
Learn more about our Education Services and Certification
ACI qualifications act as a licence to deal in many countries, providing evidence to interested
parties of importance placed on highest standards of practice and ethical conduct.
ACI MEMBERS’ NETWORK
Join a worldwide professional and multi-faceted expert team
ACI members are proud to represent individual responsibility and to connect with people from
around the world who also want to be informed and follow the best possibly practice in our
industry.
Sergey Romanchuk, 11th ACI Russia General Assembly, 21 May 2015, Moscow
Working Groups
• ACIFXC Working Group
• Derivatives Working Group
• EURIBOR
• Market & Liquidity Working Group
• Regulatory Working Group
Sergey Romanchuk, 11th ACI Russia General Assembly, 21 May 2015, Moscow
ACIFXC Working Group ( ACI FX Committee)
ACIFXC MISSION STATEMENT
•
To inclusively represent the entire professional FX Market, including in the
membership of ACI all Professional Market Participants (PMP’s), who, based on
the principle of personal integrity, will individually uphold the values of the Model
Code.
•
The committee to be focused on and comprised of FX Experts who will support
both the Executive Board and Regional ACI’s and ensure that the views of the
professional FX community are heard at the highest levels, in co-operation with
other associations that have an FX voice when applicable.
•
The ACIFXC to work in concert with regulators and other FXC’s to promote a
common global, orderly and transparent FX market and to lobby on regulatory
issues as required. To recommend best practices and changes to the Model
Code as and when necessary from a professional FX market perspective.
•
The ACIFXC will fully represent current and future trading styles and execution
choices available to the FX markets professional participants and will actively
facilitate the development of Regional Foreign Exchange Markets and their
integration into the global marketplace.
Sergey Romanchuk, 11th ACI Russia General Assembly, 21 May 2015, Moscow
Cases and Challenges
MANIPULATION
•
For manipulating the LIBOR rate of 12 banks paid $ 6.5 billion fines
•
Six major banks have been fined more than $4bn as regulators punished them for their role
in a foreign exchange rate-rigging scandal that once again called into question the integrity
of global financial markets.
•
RBS May Face Extra £2.6 Billion in FX Misconduct Charges
•
BNY Mellon Prepares for $598m Legal Hit.
•
A number of major banks are now under fire in a US court for allegedly manipulating the FX
markets on futures exchanges, including CME and the Intercontinental Exchange (ICE)
Futures US.
Sergey Romanchuk, 11th ACI Russia General Assembly, 21 May 2015, Moscow
ACI Media Publications & Press Releases
•
March 2015 ACI Response to ESMA Addendum-Consultation-Paper-MiFID-IIMiFIR
•
January 2015 FEMR Consultation Response - ACI Response
•
October 2014 Public Comment on Consultation Report on Risk Mitigation Standards for
Non-centrally Cleared OTC Derivatives
•
12 August 2014 Official Feedback to FSB Benchmark Consultative Document
•
27 March 2014 Appointment of Marshall Bailey as ACI President Delegated
•
24 March 2014 ACI White Paper - The Potential impact of New Regulation on End Users in
the FX Market
Sergey Romanchuk, 11th ACI Russia General Assembly, 21 May 2015, Moscow
ACI most important actions
MODEL CODE 2015 LAUNCHED AT WORD CONGRESS
The Model Code places a renewed focus on education and ensuring individuals are educated
on the appropriate ethical standards and behavior expected of them by their employers and the
market.
The update is part of ACIFMA’s continued response to the industry being hit by scandals of FX
manipulation and Libor.
ACI’s Committee for Professionalism, chaired by David Woolcock, reviewed and approved The
Model Code 2015, adding in new procedures and practices around prime brokerage, last look,
aggregation, high frequency trading, dark pools and algos.
It also offers advice on best practice during times of extreme market volatility such as that
which followed the removal of the 1.20 EUR/CHF floor on January 15.
The CFP also revamped various sections of the Code as a result of changes in the regulatory
world and the Fair and Effective Markets Review (FEMR).
Sergey Romanchuk, 11th ACI Russia General Assembly, 21 May 2015, Moscow
ACI most important actions
ACI LAUNCHES ELAC
In tandem with the release of The Model Code 2015, ACI – the Financial Markets Association
has launched a new e-Learning Annual Certification (ELAC) Portal, which is intended to help
reduce conduct risk for banks and help them align their internal processes and training with the
wider regulatory environment.
Marshall Bailey, president of ACI FMA, says: “Regulators are rightly stepping up efforts to
tackle trader misbehavior and place ethics at the heart of their market reforms. There is a clear
and urgent need to reform the culture and conduct of the financial services sector, and ACI’s
Model Code and ELAC Portal set the benchmark for industry best practice across the fixed
income, currencies and commodities in order to achieve this.”
As well as enabling members to self certify through an online exam, the ELAC Portal is
interactive. Members can seek expert advice by posting questions and creating new trading
scenarios when dealing with grey areas of The Model Code. The CFP will assess the scenarios
and provide feedback, as well as determine whether they should be added to a future update to
the Code.
Sergey Romanchuk, 11th ACI Russia General Assembly, 21 May 2015, Moscow
ACI LAUNCHES ELAC
Sergey Romanchuk, 11th ACI Russia General Assembly, 21 May 2015, Moscow
ACI LAUNCHES ELAC
Sergey Romanchuk, 11th ACI Russia General Assembly, 21 May 2015, Moscow
ACI LAUNCHES ELAC
Sergey Romanchuk, 11th ACI Russia General Assembly, 21 May 2015, Moscow
ACI LAUNCHES ELAC
Sergey Romanchuk, 11th ACI Russia General Assembly, 21 May 2015, Moscow
ACI LAUNCHES ELAC
Sergey Romanchuk, 11th ACI Russia General Assembly, 21 May 2015, Moscow
ACI LAUNCHES ELAC
Sergey Romanchuk, 11th ACI Russia General Assembly, 21 May 2015, Moscow
ACI LAUNCHES ELAC
Sergey Romanchuk, 11th ACI Russia General Assembly, 21 May 2015, Moscow
ACI LAUNCHES ELAC
Sergey Romanchuk, 11th ACI Russia General Assembly, 21 May 2015, Moscow
ACI LAUNCHES ELAC
Sergey Romanchuk, 11th ACI Russia General Assembly, 21 May 2015, Moscow
ACI LAUNCHES ELAC
Sergey Romanchuk, 11th ACI Russia General Assembly, 21 May 2015, Moscow
ACI LAUNCHES ELAC
Sergey Romanchuk, 11th ACI Russia General Assembly, 21 May 2015, Moscow
ACI LAUNCHES ELAC
Sergey Romanchuk, 11th ACI Russia General Assembly, 21 May 2015, Moscow
ACI LAUNCHES ELAC
Sergey Romanchuk, 11th ACI Russia General Assembly, 21 May 2015, Moscow
ACI LAUNCHES ELAC
Sergey Romanchuk, 11th ACI Russia General Assembly, 21 May 2015, Moscow
ACI LAUNCHES ELAC
Sign up for 2 years just for 125 EUR till 31st of May 2015
instead of 1650 EUR if your are ACI Russia member!
Sergey Romanchuk, 11th ACI Russia General Assembly, 21 May 2015, Moscow
ACI Future
THE GLOBAL PREAMBULE
“Codes of Best Market Practice and Shared Global Principles”, which advises on personal
conduct, confidentiality and market conduct, and policies for execution practices was jointly
approved by eight foreign exchange committees (FXCs) that have been working together on
the document since their meeting in Sydney last April.
The FX committees involved in the work are the Australian Foreign Exchange Committee,
Canadian Foreign Exchange Committee, the European Central Bank’s Foreign Exchange
Contact Group, the Hong Kong Treasury Markets Association, the UK Foreign Exchange Joint
Standing Committee, the New York Foreign Exchange Committee, the Singapore Foreign
Exchange Market Committee, and the Tokyo Foreign Exchange Market Committee.
UNIFIED SINGLE GLOBAL MODEL CODE
The Bank for International Settlements has set up a working group with the aim of establishing
a single global code of conduct in the foreign exchange markets. ACI – The Financial Markets
Association, which has a long history of calling for a single global code of conduct and best
practice across the FX markets, also welcomes the initiative.
“We believe that there needs to be a renewed focus on codes of conduct, as well as continued
education. The only way to tackle market misbehavior is to go down the ethical and conduct
route and get to a heart of the culture that possibly built up within the industry and change it,”
David Woolcock, chair of the Committee for Professionalism (CFP), tells Profit & Loss.
Sergey Romanchuk, 11th ACI Russia General Assembly, 21 May 2015, Moscow
Russian fx market issues 2014-2015.
LAW MAKERS INITIATIVES
MOSCOW, December 29- Russian President Vladimir Putin signed a law regulating the retail
forex market. According to the law, forex dealers are recognized categories of professional
participants of the financial market.
MOSCOW, February 16 - RIA Novosti. Member of the Economic Committee of the Federation
Council, Senator Eugene Tarlo is going for two weeks to the State Duma a bill on the tax on
foreign exchange transactions. "The amount of tax to be about 1% of the transaction, it will
apply to all buyers and sellers of foreign currency and prevent speculations”.
BANK OF RUSSIA INITIATIVES
MOSCOW, March 16 – RBC. The Bank of Russia is considering the introduction of auctions of
discrete - time limitation of trading - in the currency market, told reporters the first deputy
chairman Dmitry Tulin on the sidelines of the banking forum. The regulator is studying the
possibility of influence of auctions in currency trading, discusses the technical implementation
of the Moscow Stock Exchange, he said. The idea is to come up with a mechanism that would
allow smooth sharp fluctuations of currency in small amounts.
Sergey Romanchuk, 11th ACI Russia General Assembly, 21 May 2015, Moscow
ACI Russia Plans and Ideas
RUSSIAN (MOSCOW) FX COMMITTEE
Under the auspices of the Bank of Russia, in the main part as a forum for banks and brokers to
discuss issues of common concern to the different participants in the foreign exchange market.
The Committee could include senior staff from many of the major banks operating in the foreign
exchange market in Moscow, as well as from exchanges and brokers, corporate users of the
foreign exchange market and representatives from the ACI, NFA (NSMA), NAUFOR, ARB, ARB
Rossiya, the Association of Corporate Treasurers.
One of the main responsibilities of the Committee would be to update and maintain voluntary
code of good market practice initially established by NFEA and based on The ACI Model Code.
EDUCATION
With new ACI Russia Head of Education - Dmitry Piskulov, ACI Russia will boost educational
programs in cooperation with leading Russian financial universities.
ELAC SIGN UP
Take 2 years for 125 EUR till 31st of May 2015 instead of 1650 EUR if your are ACI Russia
member!
Sergey Romanchuk, 11th ACI Russia General Assembly, 21 May 2015, Moscow