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NSMA’s mission: development of the Russian financial market
and improvement of market conditions for participants’ activities.
The National Securities Market Association (NSMA) is a leading organization of professional participants of the Russian securities market. It was established in January 1996 and numbers about 250 members, mainly from credit organizations, located in 25 regions of 7 Federal districts. The NSMA is an associate member and represents the Russian participants of securities market in the International Capital Market Association (ICMA) and in the European Financial Markets Federation.
The NSMA is a trade association operating on a self-regulatory basis. Its mission is to encourage the economic growth in Russia by efficiently using the potential of the Russian securities market and improving its efficiency for the NSMA members, other professional participants and investors.
I. NSMA’s priorities
To carry out its mission NSMA is doing its best to succeed in:
- facilitating the increase in the number of financial instruments, raising the quality of the employed technologies to secure stable development and growth of the Russian securities market (including government and corporate securities, special types of securities, financing and refinancing tools, derivatives and structured products) for arranging more investments and capitalizing the national economy.
- expanding the business of NSMA’s members in the financial market and minimizing their expenses by taking advantages of joint and collective actions for meeting common goals of securities and financial markets.
- minimizing risks in professional activities and providing productive risk management system by continuing development of professional standards;
- increasing transparency of professional activities and securing rights of clients and investors;
- providing efficient “feedback and liaison system” between legislators, regulators and participants of the financial market;
- promoting opportunities and services of NSMA’s members among domestic and international investors, Russian and foreign business communities;
- facilitating efficient integration of Russian and international financial markets, providing an appropriate representation of the Russian participants, facilitating conditions for developing the International financial center in Russia.
II. History
1996 – 1998
- developing legislative and normative basis of the securities market and providing for favourable conditions for efficient operation of credit organizations;
- developing the first standards for professional activities in the Russian securities market;
- signing an agreement with the Bank of Russia on interaction in the securities market;
- participating in the development of new operations, tools and technologies of the market of government bonds and overall stock market;
- providing assistance to the members of the Association in overcoming the consequences of 1998 crisis.
1998 – 2002
- implementing and developing NSMA’s professional standards;
- elaboration of programs of securities market restoration and development, their approval with the RF Government authorities;
- participation in restructurization of government corporate bond and internal government currency loan bond markets, initiated by MINFIN of RF;
- participation in the development of legal framework for banks’ activities in the Russian securities market;
- elaboration of self-regulatory mechanisms of NSMA’s activity;
- development of corporate bond market concept; holding the first all-Russia conference of issuer-enterprises, etc.;
- accelerating the work with issuers via establishment of NSMA’s Issuers Council;
- getting licenses of the Federal Securities Commission of Russia and performing the SRO functions related to main types of financial activity;
- signing a General Agreement with the Bank of Russia on interaction in the area of control and financial reporting;
- participation in elaboration of the new legislation for regulating operations in the securities market, including Repos, fixed-term tools, etc.;
- participation in resuming issuance of bonds of the Bank of Russia, launching repo operations, expanding trades with Eurobonds, etc.
2003 – 2008
- developing jointly with the Board of Federations of RF the program of development of regional financial markets;
- signing agreements on interaction with the FFMS of Russia;
- adapting the Russia’s FFMS initiatives on risks reduction (internal control, internal reporting, new types of reports) to the operations of credit organizations;
- participating in preparation of the program “Government policy guidelines for banking system” (in the part of financial market);
- participating in development of legislative acts by the State Duma of RF on the new banking instruments, mortgage-backed securities, securitization, notes, etc.;
- elaboration of proposals on development of government securities market and interaction with MINFIN of RF in this field;
- establishment of NSMA’s Underwriters Club;
- calculating and publishing the National Bond Fixing Rate - MIRP (Moscow Interbank Reference Price), according to the Lombard list of the Bank of Russia, followed by its publication by international and domestic rating agencies;
- NSMA’s joining the ICMA’s membership, realizing jointly with ICMA the projects on editing and adapting the international standards to the Russian securities market, including repos, and promoting the best international practices relating to professional financial activities;
- creating conditions for development of securities lending market, translation and edition in the Russian language in 2007 of the brochure “An introduction to securities lending” by M. C. Faulkner.
2008 – Nowadays
- Preparation of the new legislation on the securities and taxation of repos and securities loans;
- participating in elaboration of “The strategy of development of financial market” as related to government securities market, refinancing system, etc.;
- signing the Agreement with Central Bank of RF on information exchange;
- developing the System of Accreditation of nationally recognized rating agencies; establishment of NSMA’s Committee on rating activity;
- developing and implementing into the market NSMA’s General Repurchase Agreement (GRA NSMA);
- realizing the projects on development of Eurobond stock market;
- standardization of underwriting procedures – development of NSMA’s General Underwriting Agreement;
- participating in settlement of bond defaults - establishment of the Commission on Investors Protection;
- cooperation with the Russian Repo Council on the issues of stabilization and overcome of crisis consequences; settlement of conflict situation in the repo market, etc.
III. NSMA – ICMA cooperation
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