On Mar. 31, 2025, RUS CB issued updated guide establishing criteria for a significant deviation in the price of securities, derivative financial instruments and forex.
The guidance enters into force on May 12, 2025 and from the date of entry into force invalidates recommendations 7-MR on significant foreign currency price variations.
On Jun. 8, RUS CB issued guide on foreign currency price variations.
RUS CB issued guidelines on criteria for major price variation for foreign currency.
Guidance
The criteria should be used to identify transactions with a significant deviation in price of foreign currency, transactions that have signs of manipulating the forex market.
It is recommended for companies to define change in prices for foreign currency as change in prices for financial instruments related to foreign currency transactions.
Also, establish price bands to limit rates of bids for foreign currency in trade.
Transactions with significant deviation in forex prices include: transactions at borders of price corridor, bids for purchase/sale of forex at the boundaries of the price corridor.
It also, establishes procedure to calculate boundaries of the risk assessment range for establishing the price corridor using exponential weighting and volatility assessment.
Also, the calculation of upper and lower limits of the risk assessment range and determine the preliminary value of collateral based on volatility and other factors.
Effectiveness
The methodological are effective from Jun. 9, 2023.
Mar. 2025 Update
On Mar. 31, 2025, RUS CB issued updated guide establishing criteria for a significant deviation in the price of securities, derivative financial instruments and forex.
The guidance enters into force on May 12, 2025 and from the date of entry into force invalidates recommendations 7-MR on significant foreign currency price variations.
