The NAUFOR standard will allow association members deal in foreign securities in the interests of non-qualified investors.

In July, amendments were passed to simplify access for foreign securities to the Russian market. Foreign securities may made eligible for public trading in Russia by the local exchange without issuer agreement, if certain criteria are met.

For instance, a broker or asset manager who buys foreign securities for non-qualified clients, must be member of a self-regulated organization (SRO) compliant with foreign securities risks notification standards.

Launching foreign share trading on Russian exchanges has been a hot topic with the investment community in recent months, when demand for major foreign company shares soared among Russian retail investors in a highly volatile market.

Foreign companies have had the option to access Russian shares through Russian Depositary Receipts, however this has seldom happened – with the exception of Russia-based UC Rusal and QIWI.

This time, the idea is to give foreign companies access to exchange trading. The share must be listed on one of the foreign exchanges approved by the CB. If share are not on the Russian exchange lists, trading does not require issuer agreement. Foreign law must not limit access to shares for Russian nationals.

Financial markets megaregulator, Trading infrastructure, Project Group №1