Overview

On 30 July 2010 one of the most anticipated and contentious laws of the last decade, Federal Law 'On Counteracting the Abuse of Inside Information and Market Manipulation and Amendment of Certain Legislative Acts of the Russian Federation' No. 224-FZ (the Law), was officially published.

Due to significant lobbying pressure against the adoption of the law on insider trading, nearly 10 years has passed between the first introduction of a bill on insider trading to the enactment of the Law. President Medvedev’s direct intervention in 2008 in support of a government plan to make Moscow an international financial centre was instrumental for the final passage of the Law in 2010.

The Law outlaws certain uses of inside information when trading in financial instruments, currencies and commodities in organized markets. However, the Law does not apply to the operations of the Bank of Russia relating to state monetary and credit policy or in support of the Rouble exchange rate or to the public debt management operations of state and municipal authorities.

The Law’s adoption is another step in bringing Russian financial services legislation in line with that of the world’s major financial centres. The Law increases transparency in Russian financial markets and aims to level the playing field for all market participants.

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