SELF-REGULATORY ORGANIZATION “NATIONAL FINANCE ASSOCIATION” SUMMARY
National Finance Association (NFA) is a leading professional association, established in 1996 by majorbanks and market government bonds investment companies, with Ministry of Finance and CentralBank of Russia assistance. Currently, it includes about 300 Russian securities market participants from 28 regions from 9 Federal districts in Russia. Their operations make up more than about 80% ofRussian financial market.
SRO NFA actively collaborates with Bank of Russia which functions as a megaregulator of the Russianfinancial market. NFA has a maximum number of licenses (permits) which gives unlimited membershipopportunities for all professional market participant categories. It effectively implements all SROfunctions including development and implementation of professional activity standards, professionalparticipants’ licensing (assistance in preparing necessary documentation, it’s expertise, legal supportetc.), professional report collection, ratings (rankings) presentation based on financial reports monitoring,domestic database documentation upgrading (in terms of regulatory innovations), professionalactivity controlling, professional expertise, employee appraisal, employee training, etc.
Among NFA current major projects are: integrated project of REPO market and refinancing systemdevelopment (legislation system, contractual basis, conducting operations technologies, methodologysupport, accounting, taxation, etc.), development of derivatives financial instrument market (DFi),upgrading of market infrastructure as well as new financial instruments (series emission, concessionbonds, bank certificates, mortgage assets, price and pricing (including Pricing Centre), trust management,improvement and unification of financial/stock market legal and regulatory framework, streamliningregulatory system and regulatory costs reduction, etc.
Since March, 2005 NFA has been calculating and publishing fixings of Russian market bonds – MIRP(Moscow Interbank Reference Price), which are published by credible Russian and International agencies,such as Bloomberg, Reuters, CBonds.
Since 2009 in collaboration with NSD and CBR, NFA has been actively developing its Pricing center(daily price calculations of more than 1500 bonds and DFi, stocks and UIT).
After finalization of merger between the National Foreign Exchange Association (NFEA) and NFA inApril 2015, SRO NFA also supervises the foreign exchange market, futures market, and calculatesMosPrime, RUONIA, ROISFIX, NFEA FX SWAP, RUREPO indices. The first OTC financial benchmarkMosPrimeRate has been accredited by Bank of Russia. Also Bank of Russia has accredited theSelf-regulatory organization National Finance Association (SRO NFA) as an Administrator of thisfinancial benchmark.
One of priorities of the NFA’s work is harmonization of Russian and International financial marketconditions, providing and improving Russian financial market participants operating conditions,adapting national legislative-regulatory framework to the International system, and sharing the bestinternational financial instruments and practice.
In terms of International relations NFA highlights long-term and effective collaboration with InternationalCapital Market Association (ICMA). Since 2003 NFA has been ICMA associate memberas well as representative of Russian financial market. NFA and ICMA are running a number of jointprojects aimed at developing of REPO transactions (with the assistance of established by NFA RussianREPO Council, and ICMA Russian and CIS Regional committee) and they are also co-hosting arange of international events (including annual International REPO-FORUM and annual InternationalConference on Russian derivatives market), seminars, etc.
Since 2006 SRO NFA has been a member of European Financial Markets Federation.