MOSCOW, March 21 (RAPSI) – The Central Bank of Russia has identified market transactions corresponding to the trading scheme known as "switch," made in violation of Russian legislation.

According to the Bank, “switch” scheme suggests transfer of finances from one entity to another through intermediary following series of trading transactions. Prices and costs at each stage of these series are more or less the same. This allows parties to compensate intermediary for its costs and pay it a fee for its services.

The Central Bank believes that “switch” sales may be classified as market manipulation and presumes that this scheme may be used to circumvent the law, conceal conflict of interest and engage in frauds. The Bank reminded the traders that there is a special procedure for transactions that are carried out by prior agreement.