Photo: Natalia Seliverstova / RIA Novosti
The Bank of Russia will not force the participants of currency trading to announce its intention to purchase large amounts of foreign currency. About the regulator said “the Russian newspaper”.
Previously, the Agency Reuters with reference to sources reported that the Central Bank is discussing with the major players in the currency market the creation of a “communication channel”, which will receive information about big client orders for the purchase of currency that could significantly affect the exchange rate.
The idea originated when representatives of the Bank of Russia at a meeting with market participants discussed the case of the HSBC trader, mark Johnson. He received two years in prison for the creation and use of schemes in which the trader has executed a series of transactions in the foreign exchange market in anticipation of customer orders to earn profits. This manipulation of price is called front-running.
In the minutes of the meeting indicated that participants noted “the need to establish a communication with the Bank of Russia for timely informing the regulator about big client orders for execution in the prevailing market conditions may significantly affect the price.”
As later specified in a press-service of the Bank of Russia, it was a discussion in the framework of specific case and it was not “on a similar proposal for our market”.
At the end of November, the Central Bank noticed that customers of Russian banks began buying large amounts of foreign currency for illegal purposes: for the supply of underground heat exchangers or money laundering. In its letter, the regulator warned banks about the dangers of such deals and has threatened action up to revocation of licenses.
Video, photo All from Russia.