Commodity Futures Trading Commission US announced that it has fined VTB and its London division "VTB Capital" in the $ 5 million for the conduct of "fictitious and non-competitive" trades on futures RUR / USD on the Chicago Mercantile Exchange.

From December 2010 to June 2013, VTB and "VTB Capital" have concluded with each other to exchange approximately 100 such transactions in the $ 36 billion, indicating the regulator. According to him, VTB translated into a London investment bank foreign exchange risk at more favorable prices than it could receive from third parties. VTB could not at competitive prices to hedge foreign exchange risk through swaps on the OTC market - the bank is registered in Russia, therefore to its counterparties used increased requirements, namely capital adequacy, indicates the regulator. Therefore, VTB endured currency risk on its London "daughter", which is hedged through swaps with international banks at favorable prices.

VTB representative confirms. The main objective of the described transactions with VTB, "VTB Capital" - hedging risks arising from the conclusion of derivative transactions with corporateVTB Group customers. This is a major Russian companies, so the need for hedging occurred mainly in VTB, he continues, and the state bank "covered by its access to the market through the" VTB Capital. " This London "daughter" of "historically had access to cheaper derivatives market as part of English law." It provides "acceptable credit risk management mechanisms for a derivative properties such as close-out netting of obligations," explained the representative of the State Bank cheapness.

Canadian washing off

In December 2014 the regulator has fined the Royal Bank of Canada for $ 35 million. The regulator decided that the bank "laundered hundreds of millions of dollars" through trade in futures on stocks. In fact, the bank to evade taxes: he traded with affiliated entities, and in the statements of the group profit for the transaction is balanced by the same loss.

"The bank has a large open position, which carries a market risk. It needs to be cut, but not always, this can be done quickly and effectively in Russia ", - says CEOUK "Sputnik. Asset Management "Alexander Losev. Meaning trade between affiliates just to the excessive risk transfer outside - on the very group that the risk no longer exists. "This is a normal market practice - so do US and European banks in Moscow or London" - surprised Losev decision of the American regulator.

VTB was the victim of unfair practice of one of the foreign banks (see. Incision), said a representative of the State Bank. "Transactions, which came under the Commission's investigation, carried out by the rules of the exchange and any claims not caused until recently. But about a year ago, the Commission has filed a lawsuit against one of Western banks, imputing his serious accusations during the transaction. Most likely, this precedent has forced the Commission to reconsider the practice of the commission of such transactions on the stock exchange and a ban on targeted operations within the same group, "- he said, adding that the ban affected all banks operating in the United States.

"VTB Capital" held meetings in New York, Kansas and Washington, and the Commission concluded, hthe "Bank acted completely within the framework of existing at the time of market practices", he continues: "However, due to the revision of the rules of trading on the Stock Exchange Commission decided not to recognize the correct work of the group on some previous deals." VTB fined the minimum amount possible, since collaborated with the Commission and carried out according to the rules of trading transactions.
Request for the regulator and the Chicago Mercantile Exchange remained unanswered.

Transactions between VTB and "VTB Capital" held "in the frankly favorable terms", making it London's "daughter" got an advantage over other companies operating on the Chicago Stock Exchange, adds managing partner of Chicago Law Office of Fedor Kozlov & Associates Fyodor Kozlov, a similar model targeted transactions within the group contributes to the violation of equal conditions of competition and contrary to the provisions of the law the Dodd - Frank, adopted in 2010