Expanded meeting of the Coordinating Council Financial & Banking Association of Euro-Asian Cooperation (FBA EAC)
July 5, 2016 in Moscow at the headquarters of the Financial & Banking Association of Euro-Asian Cooperation held an enlarged meeting of the Coordinating Council.
The main agenda was the approval issue of “pilot project”, “Organization of the financial settlement of export-import operations with the use of Commodity Exchange mechanisms in the emerging common economic space EAEC”.
The project was presented by president of FBA EAC Bakhytbek Baiseitov. He reminded the participants of the meeting that the activities of FBA EAC aims at finding and creating real existing financial instruments that allow its members to effectively carry out its business, investing and financing activities in the current market conditions. And he explained the essence of the proposed scheme of interaction of representatives of the real sector of economy of the countries of the Eurasian Economic Union.
The mediator in this interaction acts Mercantile Exchange. Exchange Clearing House, established on the basis of a particular bank, allowing for one trading day to carry out calculations between participants of stock exchange transactions with the clearing in major world currencies and currencies of countries participating in the Eurasian Economic Union, SCO, BRICS. Exchange allows you to conduct transactions without any restrictions on the jurisdictions of participants and types of commodities. Calculations are carried out on behalf of the “Clearing Participant” on the conditions prescribed in the agreements concluded with the Exchange. All bids are opened, the information is updated daily in the on-line mode on the Exchange’s website. There is conducted trading statistics that allows accounting volatility of commodity nomenclatures and form for long periods of the procurement plan. On the Exchange forms “Demand” and “The Proposal” by economic entities of countries of the Eurasian Economic Union, SCO, BRICS, as well as open access to the derivatives market.
The advantages of this system of clearing settlements is that it allows bidders located in different jurisdictions use the mechanism of the Clearing House of the Exchange without using SWIFT international payment system, which is especially important in the current conditions of sanctions and counter-sanctions.
Today, the project involves members of the Association: Universal Commodity Exchange Eurasian Cooperation (e.g. Astana, Republic of Kazakhstan and Bank CenterCredit (Kazakhstan).
General Director of Financial & Banking Association of Euro-Asian Cooperation (FBA EAC) Oleg Berezovoy reminded the participants of the meeting that the Association was originally conceived as a club of business representatives from the creative approach to business.
FBAEAC- a platform for experimentation, finding the best forms of doing business. From the idea to its realization in this case, it took less than six months. We have all the possibilities to implement all the initiatives of the Association.
This post is also available in Russian: Расширенное заседание Координационного совета Финансово-банковской ассоциации ЕвроАзиатского сотрудничества