Prospects of Commodity Trade Development in SES

The final part of this report presents the results of research undertaken jointly by the Eurasian Development Bank (EDB) and the International Association of Exchanges of the CIS (IAE CIS) on commodity market regulation in Russia, Kazakhstan, Belarus and Ukraine. Research has shown that regulation of commodity exchanges in Russia, Kazakhstan and Belarus is hindering interexchange cooperation on organised commodity markets. It is now time, research suggests, to define and adopt priorities for the development of an organised interstate commodity exchange. This will require a more detailed analysis of the problems that affect such cooperation; it also calls for the development of a long-term strategy to create a competitive interstate commodity market. It is clear that the differences in legislation regulating organised commodity markets and trading activity are a serious stumbling block to interexchange cooperation. As already mentioned, the regulation of organised commodity markets lags far behind that of the stock markets or the banking sector. Legislation needs to be drafted which takes into account fully the specific characteristics of an organised commodities market