New Versions of Rules Came into Effect on MICEX Stock Exchange
OREANDA-NEWS. On 13 March 2009 was announced, that in accordance with the decision of the MICEX SE Directorate, the new versions of the Rules of trading in securities on the MICEX SE, the Rules of listing, admission to placement and trading in securities on the MICEX SE and the Rules of calculating the MICEX Index come into effect on 1 March 2009.
The new versions of the Rules of trading in securities on the MICEX SE, the Rules of listing, admission to placement and trading in securities on the MICEX SE and the Rules of calculating the MICEX Index were registered by the Federal Service for Financial Markets (FSFM) of Russia. The Exchange’s internal normative documents have been brought to conformity with the requirements of the order of the RF FSFM N08-52/pz-n “On making amendments to some orders of the Federal Service for Financial Markets of Russia” of 13.11.2008.
The new version of the Rules of trading in securities on the MICEX SE provides for the following procedure for the suspension of trading:
Trading will be suspended as a result of changes in the value of the MICEX Index value only in the mode of main trading in shares, subject to decrease or increase in the value of the MICEX Index against the value of the previous trading day’s closure:
- by 15%: for one hour (if this event occurred before 16:00, local time)
- by 25%: till the end of the current trading day.
Suspension of trading in a single security is provided only for the stocks included on the 1st and 2nd level “A” Quotation List, as well as stocks comprising the MICEX Index if the current price of the security decreases or increases against the value of the previous trading day’s closure:
- by 20%: for one hour (if this event occurred before 16:00, local time)
- by 30%: till the end of the current trading day.
The current price of the security is calculated not less often than once a minute during the trading day.
The Rules of trading provide for a new procedure for calculating the current prices and the closing prices of securities used for the purposes of suspension of trading. The new procedure satisfies the requirements of statutory acts of the RF FSFM.
Beginning from the date of implementation of the new version of the Rules of trading, the Rules of trading in securities on the MICEX Stock Exchange, approved by the Board of the MICEX SE on November 6, 2008, are rendered inoperative.
The new version of the Rules of listing, admission to placement and trading in securities on the MICEX SE:
specifies and expands certain requirements for issuers and securities when securities are included and maintained in Quotation lists of the MICEX SE.
The period of maintaining a security in “V” Quotation List of the MICEX SE is extended from 6 months to 1 year.
The rules of listing have been supplemented with the procedure for withdrawing corporate, municipal and sub-federal (regional) bonds from the Quotation lists of the MICEX SE as a result of the issuer’s failure to perform its obligations with regard to these bonds. The concepts of “default” and “technical default” have been introduced for issuers of bonds. The list of grounds for delisting has been supplemented with the issuer’s failure to perform its obligations with regard to bonds listed on the Stock Exchange. The new version of the Rules obligates issuers to inform the MICEX SE about the occurrence of default/technical default.
In accordance with the new version of the Rules, for bonds to be included on the first-level “A” Quotation List contains the issuer and/or its bond issue must have a credit rating received from one of rating agencies. The level of the rating and the list of rating agencies are determined by the Board of the MICEX SE. This requirement applies to issuers of corporate bonds, as well as issuers of sub-federal (regional) and municipal bonds.
In accordance with the new version of the Rules of calculating the MICEX Index, the MICEX Index will be used by the MICEX Stock Exchange to suspend trading in cases stipulated by the statutory acts of the RF FSFM. Thereupon, beginning from March 2, 2009, the MICEX SE terminates the calculation and publication of the Technical Index of Stocks (TECHIND), the Technical Index of Bonds (TECHINDBOND) and the Technical Index of Shares of Investment Funds (TECHINDSHARE).
In order to unify the timing of the revision of the compositions of all indices of stocks calculated by the MICEX SE, the new version of the Rules sets new dates of adoption and implementation of the composition of the MICEX Index. The composition of the MICEX Index will be adopted during the first 3 working days of April and October and implemented on April 25 and October 25 respectively.
The Rules of calculating the MICEX Index as approved by the Directorate of the MICEX SE on July 4, 2007, (Minutes N 64-1) and endorsed by the Board of the MICEX SE on July 6, 2007, (Minutes N 34) are rendered inoperative beginning from the date of implementation of the new version of the Rules takes effect.
The text of the new versions of Rules of trading in securities on the MICEX SE, the Rules of listing, admission to placement and trading in securities on the MICEX SE and the Rules of calculating the MICEX Index is available at: http://www.micex.ru/markets/stock/documents
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