Bridging the gap

Russia is finally set to introduce standardised documentation for derivatives instruments, which should help create the legal certainty participants view as critical to market growth. Mikhail Loktionov and Laila Vildanova look at the mechanics of the documentation

While the Russian derivatives market has been in existence for more than a decade, the enforcement of contracts has been clouded in uncertainty. In particular, since the country's financial crisis in 1998, Russian courts have treated certain derivatives instruments as gambling contracts, which do not benefit from judicial protection.

This lack of clarity on contract enforcement has hindered the growth of the Russian derivatives market and the ability of a wide range of participants to manage