The National Mercantile Exchange (NAMEX), which is part of the MICEX Group, has won the open tender, organized by Russia’s Ministry for Agriculture to select exchanges to conduct state purchase and commodity interventions with the aim of regulating the market of farm products, raw materials and food in 2006-2007.
The NAMEX has participated in state interventions in the grain market since 2002.
Accredited participants in the planned state interventions will obtain access to the unified trading system on exchange floors in Moscow (the National Mercantile Exchange), St.Petersburg (the St.Petersburg Currency Exchange), Rostov-on-Don (the Rostov Currency and Stock Exchange), Nizhny Novgorod (the Nizhny Novgorod Stock and Currency Exchange), Samara (the Samara Currency Interbank Exchange), Yekaterinburg (the Urals Regional Currency Exchange) and Novosibirsk (the Siberian Interbank Currency Exchange). Participants in trading will be able to enter their orders from their work places on exchange floors or via remote access centers, organized by regional exchanges in 16 Russian cities.
In state purchase and commodity interventions of 2006-2007, as in previous interventions, the exchange fee will be 0.5% of the value of the lot sold in exchange-based trading.
State purchase and commodity interventions are an important instrument of regulating the grain market. The use of exchange mechanisms to regulate the grain market promotes the development of modern grain market in Russia.
Background Information:
The National Mercantile Exchange was established in July 2002 for the purpose of organizing an exchange-based commodity market. The NAMEX stockholders are the Russian Grain Union, the Russian Sugar Producers Association, APK OGO, Razgulyai Grain Company, the Moscow Interbank Currency Exchange, the Nizhny Novgorod Stock and Currency Exchange, the Samara Currency Interbank Exchange, the Siberian Interbank Currency Exchange, the Urals Regional Currency Exchange, the St.Petersburg Currency Exchange, the Rostov Currency and Stock Exchange and other organizations. The NAMEX holds the license of the RF Federal Antimonopoly Service’s Commission for Commodity Exchanges to organize exchange-based trading in different commodities and standard contracts.
In 2002 - 2005 the NAMEX participated in organizing and holding exchange-based trading in the framework of state interventions in the grain market.
At present the NAMEX is launching exchange-based trading in the wheat futures, developed jointly with the Russian Grain Union. The NAMEX has its Section for Standard Contracts on grain crops, leguminous plants and industrial crops. The NAMEX plans to organize training in the practical aspects of trading in the exchange-based grain market.
When organizing the exchange-based commodity market, the NAMEX uses the infrastructure and the technologies of the MICEX Group, thus accelerating the implementation of projects and securing the reliable performance of the commodity market. The MICEX Group’s IT infrastructure is a highly reliable and well-protected soft- and hardware complex. To access trading, participants in the commodity market can use a specialized access system, which can work via dedicated telecom channels or via the Internet. Certified cryptographic security means are used to protect information and provide its authenticity.
