Goals and objectives of the Exchange

“It is necessary to continue work on improving exchange mechanisms in the trade in oil, oil products and gas ... With the development of exchange trading, it is necessary to form independent national price indicators for the main types of fuel and energy products”
President of the Russian Federation V.V. Putin
Speech at a meeting of the Presidential Commission
on issues of the development strategy of the fuel and energy complex and environmental safety
October 27, 2015

The primary goal of SPIMEX is to create a regulated commodity market and a transparent mechanism of ensuring fair prices for the key commodities produced in the Russian Federation and the EAEU countries.

Implementation of the National Competition Development Plan of the Russian Federation

As the leader of exchange trading in the commodity markets of Russia, the SPIMEX is the main instrument for implementation of the “National Plan on the Development of Competition in the Russian Federation for 2018-2020” approved by Executive Order of the President of the Russian Federation of December 21, 2017 No. 618. The National Plan provides as one of the key objectives the systematic development of organized (exchange) trading in various commodity markets.

SPIMEX acts as a conductor of the national policy aimed at promoting competition and democratizing access to commodities and producers.

Fair pricing — enhancing market transparency

Exchange trading is conducted as a double-sided anonymous auction, where the seller and the buyer do not see each other and can not agree on the price. The deal is made automatically when conditions in opposite anonymous orders are matched. This special organization of exchange trading makes it possible to determine the fair market value of commodities.

The Exchange plays an important socio-economic role by increasing transparency and competitiveness of each of the industries involved in organized trading. The growth in exchange trading volumes also stimulates development of the physical infrastructure of the market, consolidated warehouses and transport hubs.

Formation of generally recognized price indicators

Formation of internal price indices officially recognized by the federal executive authorities (the Ministry of Energy of Russia, the Federal Antimonopoly Service of Russia, the Federal Tax Service of Russia, the Federal State Statistics Service) as a price indicator and the use of such indices in making long-term contracts and as underlying assets for derivative financial instruments is one of the main objectives of SPIMEX.

SPIMEX forms price indicators and develops exchange trading in furtherance of the Orders of the President of the Russian Federation and Decrees of the Government of the Russian Federation. The Exchange has agreements to increase information transparency of the market and provide price indicators in place with the Federal Antimonopoly Service, the Ministry of Economic Development and the Ministry of Energy of the Russian Federation.

Provision by the Exchange of objective information on market prices for traded commodities is important for market participants as well, allowing them to assess the current state of the industry and its development trends.

Ensuring efficient trading

As an independent and the largest trading platform on the commodity market, SPIMEX focuses on providing reliable and effective trading and settlement and clearing services for sellers and buyers of the commodity market and creating equal and fair trading conditions for trading participants:

  • protection of interests of market participants through clear and fair rules for conducting open and public trading, where the rights of buyers and sellers are equally protected;
  • improvement of mechanisms ensuring settlement of transactions through stringent requirements to the financial condition of trading participants and organization of the clearing and settlement system;
  • development of the derivatives market and other, higher forms and instruments of exchange trading significantly expanding opportunities of trading participants in terms of pricing, risk management, hedging;
  • optimization and reduction of costs of participants due to simplified and universal (as compared to the OTC market) procedures for closure of deals made and automated settlement mechanisms.

SPIMEX is implementing a set of measures to increase the number of trading participants, both producers and consumers. These measures are designed to ensure increase in trading liquidity and increased value of exchange services due to the network effect of interaction of market participants.

The Exchange is constantly expanding the range of commodities traded, the number of delivery bases, developing exchange instruments in new industries, offering new opportunities for buying small lots for small and medium-sized businesses, and providing free training for trading participants.

Development of export trading

The Exchange is implementing its goals aimed at introducing new pricing mechanisms and a new price benchmark for the Russian energy exports. SPIMEX is working on the development of organized trading in oil and refined products, including export sales of Urals oil by the Russian oil companies through electronic auctions. The resulting price indicator is expected to be used for development of the export oil futures market.

Another important contribution to protecting national economic interests in the field of international trade is the Exchange’s project for export timber trading development, which aims to increase pricing transparency in this market and streamline the export of Russian timber.