Constructing a Global Web of Stock Exchange Interconnections
Expanding Horizons with International Exchanges
Let's talk about the future of foreign exchanges, where things are looking pretty exciting! We're gazing at a possible surge to 15-20 foreign exchanges joining the party. Surprisingly, there's no global association dedicated to commodity exchanges, but you'll find a bunch of associations mixing stock, currency, and other markets.
Our main goal in creating this intrigue is to establish "links" - bridge connections between exchanges and countries, ensuring full technical compatibility and continuous communication and trading channels for export-import operations. Picture this: Chinese brokers registering on the St. Petersburg Exchange, and vice versa. That's how we create a shared exchange trading space.
Next up, settling payments and governmental positions on quota-regulated goods. When quotas don't exist, we simply cook up a plan. The objective is to weave a global web of exchange bridges in a friendly Russian environment. Nobody's ever formulated this task, but we're taking the first steps, starting with the Brics countries (Brazil, Russia, India, China, South Africa). Four out of the seven exchanges that have signed the agreement are major Global South and Brics countries. The world's waiting to see what happens next with Brazil, South Africa, Egypt, and other countries stepping up to bat.
Buzz among International Partners
Partners are chomping at the bit, listening with great interest! Nobody's tried something like this on a global scale before. Plus, at the summit in Kazan dedicated to the Brics format, they adopted a declaration supporting the initiative of President Vladimir Putin to create the Brics exchange. Inspired by this, we developed the concept of a global web of exchange bridges, with Brics playing a significant role. We're definitely looking at OPEC+, Brics+, and our neighbors - the EAEU and EAEU+.
Out with the Old, In with the New
How are the international currencies lining up in settlements? No worries, we've tested the waters with systems linked to yuan-ruble calculations and can handle it just fine. We're setting our sights on the currencies of the UAE and Qatar, along with other countries. With a little help from the banks, we believe we've got this covered!
Navigating Challenges
Where do market participants stand on exchange trading? Let's dive into their arguments and offer some reassurance. The main reasons for resistance revolve around fear of the unknown and skepticism about the impact on existing systems.
For those familiar with commodity markets, like the oil products market, it's a case of stepping out of the comfort zone. Remember the 1990s and early 2000s? Gray exports, transfer pricing, and turf wars plagued the industry. Exchange trading, however, brought a significant shift, leading to the establishment of clear regulations and transparent pricing. Sure, there was initial resistance, but as companies adapted, their interest grew, leading to a more efficient market.
Transfer pricing is still a problem in the mid-2020s. Tax inspectors fight this, but when exchange and mandatory trading come into play, it's game over. The exchange ensures a fixed VAT price, making it impossible to reduce. This is crucial for the state's national security interest, ensuring the fulfillment of its social functions related to taxes.
Market-Based Pricing
Is it right and possible to make the exchange index the basis for the tax base? Absolutely, that's the goal of both the market and the state. The exchange exists to provide transparency, openness, a safe haven, and market-based pricing. On the other hand, for the state, the exchange Price Index offers a clear and unbiased view that helps regulators avoid tax evasion.
Regulators' Response
Regulators are on board, but the process isn't light-speed since it involves transforming the world and fostering transparency. We have two proposals in the pipeline: one drawn up by lawmakers, but prepared by the Ministry of Finance, the Central Bank, and FAS, focusing on obligatory trading volume for taxation and transparency; the second, amendments to the Tax Code.
Business Reactions
Business reactions are mixed. Those familiar with the exchange are cool, calm, and collected, while businesses resistant to change express concern about being stripped of their profits. However, a transparent exchange provides a balance between tax fairness and a fair return for businesses, providing a safer, more efficient market for all players.
With promises of a brighter future, we must brace for the inevitable opposition. As we've seen in the past, there will be resistance, especially from companies profiting from the current system. But transparency and openness always win in the end!
Stay tuned for more updates on exchange trading and the future of global finance!
- Amidst the global finance landscape, the goal is to create a network of exchange bridges, linking various industries such as stock, currency, and commodity markets, including the business of international commodity exchanges.
- As the new exchange bridges between countries are established, there will be a need for efficient payment settlements, involving not just the yuan and ruble, but also currencies from other influential financial markets, like those in the UAE and Qatar.
