RTS Released 2009 Review

OREANDA-NEWS. January 19, 2010. In 2009 the total trading volume across all RTS markets rose by 5.59% to reach USD799.3 billion compared to 2008 figures. The RTS Index, the main benchmark of the Russian stock market, posted a 128.6% increase for the year and closed at 1,444.61 points on December 31, 2009, outperforming in terms of growth rate global indices such as Bovespa, India BSE 30 and the Shanghai Composite that went up by 83%, 81% and  80% respectively.

One of the key developments of 2009 was the launch of RTS Standard, a new cash equities market of RTS, where 22 top liquid Russian stocks  trade without 100% advance depositing of assets with settlement on T+4 from 10:30 am to 11:50 pm MSK. Eight months after the project went live the average daily trading volume almost tripled to reach USD341.9 million.

Thanks to the dynamic development of the new spot market in November 2009, 17 stocks which traded on RTS Standard were included into the RTS Index basket. The updated methodology of its calculation allows the RTS Index to be calculated, not only during the main trading session but also during the evening trading hours until 11:50 pm MSK. This enables the Russian securities market to be analysed when global financial markets are open and also effective derivatives trading from 7:00 pm to 11:50 pm MSK.

During 2009 RTS continued to actively develop FORTS, its futures and options market.

In February 2009 futures contracts on EUR/USD and EUR/RUB exchange rates were introduced. These FX instruments entered the TOP-5 most liquid contracts on FORTS, as soon as trading began. In September 2009, Futures and Options World (FOW), one of the leading industry magazines covering derivatives exchanges, awarded the new FX contracts for "best innovation in product design 2009 – Eastern Europe".

In April 2009 the existing precious metals products line (futures and options on gold and silver) was completed with contracts on platinum and palladium.

Throughout 2009, FORTS continued to reinforce its position among the global derivatives exchanges. In accordance with the rankings published by the Futures Industry Association (FIA), one of the world’s major independent associations of derivatives exchanges, FORTS is rated 9th among the TOP-10 derivatives markets worldwide in terms of trading volume measured in contracts, based on Q1 results.

The RTS Index futures was recognized as the most liquid instrument of the Russian financial market. FIA put it in its global TOP-10 most widely traded index contracts above such popular contracts as the Kospi 200 futures trading on the Korea Exchange and DAX option contract trading on Eurex. FORTS USD/RUB and EUR/USD FX contracts also performed well ending up in 10th and 13th positions respectively.

The Brent futures contract won the ‘Best New Instrument Promotion Project’ at the 8th Elite of the Securities Market competition held by NAUFOR, the national association of participants of the securities market. In addition, FIA ranked it 17th among the TOP-20 leading energy contracts.

On March 26, 2009 trading began on the Ukrainian Exchange within RTS’s international projects programme. On April 27, 2009 the Ukrainian Exchange launched the UX Index made up from local stocks. For the period from March to December 2009, the total trading volume on the Ukrainian Exchange reached USD643 million. Currently, over 30% of local stock trading takes place on the Ukrainian Exchange.

On March 30, 2009 the Eurasian Trading System went live. By the end of the year the total volume of trading in agricultural commodities amounted to USD199 million worth of 1.5 million tons, which makes up 9% of the total agricultural production in 2009. In September a derivatives section was opened on the Eurasian Trading System, where deliverable futures contracts on agricultural commodities now trade. The Eurasian Trading System has plans to expand its derivatives offering in 2010 by adding contracts on oil products and precious metals.

Indices

In 2009, the RTS Index grew by 128.6% to close at 1,444.61 points on December 31, 2009. The minimum value of 498.20 points was demonstrated on January 23, 2009 and the maximum value of 1,486.62 points was shown on November 18, 2009.

The ruble-denominated RTS Index added 133.8% over the year ending up at 9,761.04 points. The slight difference is due to the USD/RUB exchange rate fluctuations – the dollar appreciated by 3% against the ruble in 2009.

The second tier stocks Index, RTS-2 Index, added 160.36% during the last year to reach 1,427.28 points. The RTS-2 Index’s low of 432.04 points was seen on February 5, 2009, and the high of 1,431.01 points was registered on December 28, 2009.

The largest growth in 2009 was shown by the consumer & retail sector, with the RTS Consumer & Retail Index gaining 230.8%, while the oil & gas sector demonstrated the smallest but still significant increase, with the RTS Oil & Gas Index going up by 93.4%.

In 2009 the trading volume on all markets of the RTS Stock Exchange totaled USD 799.3 billion dollars, which is a 5.6% increase on the previous year.

RTS Index*

* - trading session’s closing value

** - initial value as of 01.09.95

RTS Indices Family

Trading volume on RTS Stock Exchange, million USD

Average daily trading volume and number of trades on the Stock Market of
RTS Stock Exchange