Bank of Russia Issued Ordinance 'On Derivative Types'
OREANDA-NEWS. The Bank of Russia issued Ordinance No. 3565-U, dated 16 February 2015, 'On Derivative Types', registered with the Ministry of Justice of the Russian Federation on 27 March 2015 under No. 36575 (hereinafter, the Ordinance).
The Ordinance sets the following types of derivatives: option contract, futures contract, forward contract, and swap contract.
Besides, according to the Ordinance swap contract includes, inter alia, an agreement providing for an obligation of a party or parties to make periodic and (or) one-time cash payments depending on the occurrence of a credit event (credit default swap - CDS). Meanwhile, credit events are determined by the Ordinance through expanding the list of events defined as a derivative's underlying asset.
Besides, the Ordinance determines a contract in form of a derivative incorporating conditions of several types of derivatives stipulated by the Ordinance as a mixed contract.
The Ordinance becomes effective 10 days after the official publication in the Bank of Russia Bulletin.
Starting the day the Ordinance becomes effective, FFMS of Russia Order No. 10-13/pz-n, dated 4 March 2010, 'On Approval of the Regulation on Derivative Types', registered with the Ministry of Justice of the Russian Federation on 14 April 2010 under No. 16898 (Bulletin of Regulations of Federal Executive Authorities No. 17, dated 26 April 2010), becomes invalid.
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