|This article is outdated. (January 2012)|
|Type||Stock exchange, Futures exchange, FX exchange|
|Founded||19 December 2011|
|Key people||Alexander Afanasiev (CEO)|
|Market cap||RUB 134,417|
|Indices||MICEX Index, RTS Index|
Moscow Exchange (Russian: ОАО Московская Биржа; latinization: OAO Moskovskaya Birzha) is the largest exchange group in Russia, operating trading markets in equities, bonds, derivatives, the foreign exchange market, money markets and precious metals. The Moscow Exchange Group also operates Russia’s central securities depository (National Settlement Depository) and the country’s largest clearing service provider (National Clearing Centre). The exchange was established in December 2011 by merging the Moscow Interbank Currency Exchange (MICEX) and the Russian Trading System.
Moscow Exchange was established on 19 December 2011 by merging the two largest Moscow-based exchanges, the Moscow Interbank Currency Exchange (MICEX) and the Russian Trading System (RTS), hence the name "Moscow Exchange MICEX-RTS". Both organisations had been formed in the 1990s and were the leading Russian exchanges for two decades with their MICEX Index and the RTS Index. The merger created a single entity and advanced Russia's plans to turn Moscow into an international financial centre. The exchange rebranded in July 2012.
The exchange completed its Initial Public Offering (IPO) on 15 February 2013, raising 15 billion rubles (approximately $500 million). The IPO, at the time the largest ever held exclusively in Moscow, was more than twice oversubscribed and drew demand from institutional investors globally. The Exchange’s shares were included in the MSCI Russia Index as of 26 November 2013. In July 2014 the Central Bank of Russia, the largest shareholder of the exchange, completed the public sale of shares representing nearly 12% of the exchange. A Russian federal law requires the Central Bank to fully sell its stake in the exchange by 1 January 2016.
The Executive Board consists of 5 members:
- CEO Alexander Afanasiev (*1962), Chairman of the MICEX FX Market Council in 2005-2012, co-chairs the National Foreign Exchange Association and National Securities Market Association
- Deputy CEO as of October 2012 Andrey Shemetov (*18 July 1974), former CEO of the brokerage firm Aton,
- Chief Information Officer (CIO) Sergei Poliakoff, a 20-year veteran of the securities industry who joined Moscow Exchange October 2012,
- Chief Financial Officer (CFO) Evgeny Fetisov (*1975), since February 2013 , a seasoned financial professional formerly of Citibank, McKinsey & Co. and Da Vinci Capital Partners.
- Chief Operating Officer Dmitry Shcheglov (*1975), a veteran of Moscow Exchange and its predecessor MICEX.
Since 2014, the Supervisory Board consists of 15 instead of 19 members previously. Alexei Kudrin, a former Russian Deputy Prime Minister and Finance Minister was elected Chairman of the Moscow Exchange Supervisory Board in June 2014.
For 2014-2015 the Board consists of the following members
- Chairman Alexei Kudrin, former Finance Minister and Deputy Prime Minister of Russia,
- Alexander Afanasiev, CEO of Moscow Exchange,
- Sergey Lykov, Deputy Chairman of Vnesheconombank,
- Andrey Golikov, a Board Member at National Clearing Centre,
- Nicola Beattie, founder and head of Market Structure Partners, a UK based consultancy,
- Mikhail Bratanov, Head of Société Générale Securities Services Russia, head of Depository Department of its subsidiary Rosbank,
- Sean Glodek, Director of the Russian Direct Investment Fund
- Valery Goreglyad, Chief Auditor of the Bank of Russia,
- Yuriy Denisov, National Research University – Higher School of Economics, Institute for Statistical Studies and Economics of Knowledge,
- Bella Zlatkis, Deputy Chairman of the Management Board at Sberbank, former Deputy Finance Minister of Russia,
- Anatoly Karachinsky, Co-founder and Chairman of the Board at IBS Group (a leading IT services provider in Central and Eastern Europe),
- Yuan Wang, former Chief Economist at China Development Bank,
- Rainer Riess, Interim Director General of the Federation of European Securities Exchanges (FESE),
- Kirill Shershun, First Deputy Chairman of the Executive Board at CentroCredit Bank Moscow, and
- Sergey Kozlov, Senior Vice President at VTB-24.
Moscow Exchange’s shares are publicly traded under the ticker MOEX. As of November 2014 the largest shareholders of the Exchange were the Central Bank of Russia (11.75%), Sberbank (9.9%), Vneshekonbank (8.4%), European Bank for Reconstruction and Development (EBRD) (6.1%) and Shengdong Investment Corporation (5.6%).
Equity & Bond Market
The Equity & Bond Market is a key platform for Russian businesses to raise capital and for domestic and international investors to access equity and debt investment opportunities. The marketplace is the main trading venue for Russian stocks as well as government, municipal, and corporate bonds. In 2013-2014, 16 companies placed stock via Moscow Exchange, raising a total of approximately RUB 200 bln. On the fixed income side, more than 400 bond issues were placed, raising more than RUB 3.4 trln for issuers.
Moscow Exchange ranks among the world's top 20 exchanges by total capitalization of stocks traded, including shares of many of Russia’s largest companies including Gazprom, Sberbank, Rosneft, Lukoil and VTB .
Most global investment banks began to provide their clients with DMA to the Russian market in 2013. As a result of regulatory changes, the international central securities depositories Euroclear and Clearstream now offer settlement services for Russian stocks and bonds.
In addition to attracting international investors to trade on its platform, Moscow Exchange is focused on further developing the domestic investor base. Recent changes to the regulation of pension funds, together with changes to the listing rules, allow more assets of non-state pension funds to be invested into the market. Other legislative changes incentivise retail investors through reduced taxation to invest into stocks and bonds.
Foreign Exchange and Money market
Moscow Exchange's FX and Money Market is a key element of the Russian financial system. The Bank of Russia uses the Exchange's infrastructure to implement monetary policy and provide liquidity to the market through repo transactions and FX swap transactions. For its domestic and international clients, including banks and corporates, Moscow Exchange offers a range of products to manage liquidity and FX exposure. It is the centre of pricing for RUB and offers many RUB currency pairs, all with tight spreads based on a transparent order book.
FX Market All transactions (spot and swap) on the FX market are centrally cleared by National Clearing Centre. In September 2014, average daily trading volume across all currency pairs was USD 22.4 bln.
While RUB/USD and RUB/EUR remain the most traded currency pairs, Moscow Exchange also actively promotes trading in other currencies. In particular the RUB/CNY pair has been well received by the market and trading in the GBP and HKD were launched in late 2014.
Moscow Exchange is one of the 10 largest exchange platforms for derivatives trading globally. The Derivatives Market facilitates trading of options contracts on, as well as futures contracts on indices, shares of both Russian and foreign companies, currency pairs, precious metals, energy and agricultural products.
Futures on the RTS Index ranked sixth among the world's most actively traded derivatives on stock market indices according to data from the Futures Industry Association as of June 2014. Futures contracts on the U.S. dollar-Russian ruble are ranked first in global liquidity, according to the Futures Industry Association.
As of October 2014, 58 types of futures and 18 types of options are traded on the Exchange.
Precious metals trading
Moscow Exchange introduced spot trading in gold and silver in 2013. It has postponed a launch of trade in platinum and palladium by end of October or early November 2014 in order to do additional testing of the trading and clearing system.
National Mercantile Exchange is Russia’s platform for spot grain trading, as well as in deliverable futures on agricultural products. Since 2002, National Mercantile Exchange has been the platform by which the Russian state executes interventions in the grain market.
Post-trade services, subsidiaries
Moscow Exchange subsidiary National Settlement Depository (NSD) was granted status as Russia’s Central Securities Depository in 2012. Subsequently Euroclear and Clearstream opened accounts with the NSD, allowing international investors access to Russian bonds and equities. Another Moscow Exchange subsidiary, National Clearing Centre (NCC), is Russia’s largest clearing center and is the Central Counterparty (CCP) across all Moscow Exchange markets.
- Russian Trading System (RTS) Stock Exchange historic, merged 2011
- Moscow Interbank Currency Exchange historic, merged 2011
- Moscow International Business Center, a commercial district in Moscow
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