OREANDA-NEWS. According to the RTS Public Relations Department, in September 2007, the main indicator of the Russian stock market RTS Index is 12 years old.

On September 1, 1995, “Russian Trading System” Stock Exchange began calculating RTS Index, which for the last years has taken the leading role of the main index of the Russian stock market. RTS Index reflects the processes, which take place on the stock market and the development of the country economics as a whole, because the index constituent list includes shares of the companies, which are most important for the financial development.

RTS Index was acknowledged by the leading international rating agencies and investment companies and banks as the most correct indicator of the stock market.

RTS index is used by the leading analysts and politicians in order to describe the situation in the Russian economics. At present RTS Index is valuable not only for the investors as a source of information. It has acquired a status of one of the most important financial instruments. On the basis of the RTS Index the managing companies, leading investment banks are actively creating new financial products, and RTS Index is the most liquid instrument on the Russian stock market. For 12 years RTS Index has beat many records. The index starting point in 1995 was 100 points. In 1999 RTS Index grew by 197.42% from 58.93 points to 175.26,illustrating the growth of the Russian financial market and economics in whole. The historical maximum of RTS Index was reached on July 23, 2007, when RTS Index value at closure made up 2091.26 points. Thus, we can state that since 1995 Russian financial market has grown almost 21 times more.

To calculate an index the total market capitalization of constituent stocks is divided by the total market capitalization of these stocks at the initial date and then multiplied by the initial value of the index. Market capitalization is calculated based on current stock prices, number of shares outstanding and free-float factor.

RTS Index and RTS-2 Index differ in list of stocks used to calculate the index. Both of them are calculated in real-time mode.

The RTS Index is calculated based on 50 most liquid and capitalized stocks picked by the RTS Information Committee experts. The constituent list is being reviewed every three months. The RTS Index serves as the underlying value for the futures contracts in FORTS (Futures and Options on RTS). The RTS-2 Index is calculated based on Second-tier stocks.

On September 17, 2007, the methodology of calculating indices will be modified with the purpose of improving the quality of indices management and reflecting the market situation at best. These modifications in the RTS Index methodology were developed with the help of analysts of the international leading index provider Standard & Poor's. Standard & Poor’s is RTS' partner in distributing and promoting the family of RTS indices, representative of Standard & Poor’s Index Service is also on the RTS Information committee and performs the duties of a consultant.