New financial instruments to be introduced in the currency market

Wednesday, 4 January 2023


From January 16, 2023, the following local legal acts approved by the BCSE Board (Minutes No. 74 as of December 23, 2022) come into force:

Changes to the BCSE Operational Regulations of the Trading Day for Transactions in Foreign Currency, approved by the BCSE Board (Minutes No. 74 as of  November 23, 2018);

Changes to the BCSE Clearing and Settlement Rules for On-Exchange Trading in Foreign Currency, approved by the BCSE Board (Minutes No. 74 dated November 23, 2018);

Conversion Rates for net claims (net liabilities) into Belarusian rubles and coefficients for adjusting the conversion rates for net claims (net liabilities);

Coefficients of individual clearing collateral for liabilities in Belarusian rubles and foreign currency for trade participants categories;

List of admitted transaction modes, settlement codes, directions of transactions, financial instruments for certain categories of trade participants.

These documents provide for the expansion of the list of financial instruments traded on the BCSE to ensure the settlements in national currencies for foreign trade operations with partner countries of the Republic of Belarus.

Key innovations include:

the possibility for transactions in the continuous double auction mode in financial instruments, where the lot currency and its associated currency is Tenge (trading in the currency pairs “Tenge – Belarusian Ruble”, “Russian Ruble – Tenge”, “Euro – Tenge”, “US Dollar – Tenge”);

the possibility for transactions in negotiated mode in financial instruments, where the lot currency is Armenian Dram, Azerbaijani Manat, Brazilian Real, UAE Dirham, Dong, Indian Rupee, Iranian Real, Pakistani Rupee, Rand, Som, Uzbek Sum;

supplementing the Temporary Regulations with information on the transactions time with new financial instruments;

adjustment of the procedure for changing the priority of currencies of the individual clearing collateral established by the Operational Regulations and necessary for the fulfillment of net obligations under trades (permitted only upon a written request of the clearing member);

empowering an unscrupulous clearing member to submit ensured orders within one hour from the opening of the trading session aimed at reducing not fulfilled net obligation in foreign currency.

The above documents with amendments are available on the BCSE official website: MAIN\MARKETS AND TRADING\CURRENCY MARKET\RULES section.