Speeches at Moscow Legal Week V

Leading Researcher of the Institute Maxim Bashkatov and Senior Researcher Alexander Nadmitov, on November 26 made presentations at the roundtable "Strategy of Development of the Banking System at Present" at the conference "National Development Strategy and Objectives of Russian Legal Science".

he conference was organised as one of the events of the Fifth Moscow Legal Week (24 November to 3 December 2015), devoted to the 25th anniversary of the adoption of the declaration of state sovereignty of Russia. It was co-hosted by the Law Faculty of the Lomonosov Moscow State University, the Kutafin Moscow State Law University (MSAL), the Moscow branch of the Russian public organisation "Association of Russian Lawyers" (RAL) with the participation of a number of different organisations and authorities.

In his report Maxim considered the legal design of the individual clearing provision, a special mechanism to ensure the fulfillment of obligations of parties to derivatives transactions. He described in detail the structure which is used in foreign law for the execution of margin payments to clearing members in the derivatives market, and also criticised the substance of Article 23 of the Law on clearing, which sets the rather contradictory regulation of so-called “individual clearing provision”. In addition, he discussed the legal nature of the clearing provision recommended by the International Association for Swaps and Derivatives (ISDA) within the standard documentation for derivative transactions (CSA, Credit support Annex).

Alexander Nadmitov devoted his speech to the Institute of the Central Counterparty, which is designed to optimise the legal regulation of the turnover of OTC derivatives. He told the audience about the pros and cons of the introduction in national legislation of this institution, and also reviewed the provisions of the current bill proposed by the Central Bank of the Russian Federation.