OREANDA-NEWS. August 9, 2010. On September 7, 2010 RTS Stock Exchange launches an unparalleled technology for concluding REPO trades with a Central counterparty in anonymous trading mode on RTS Standard. The principle of this technology is based on the order-driven market with settlement of the first part of the REPO trade on the day of concluding a trade (T+0) and the second part of the REPO trade on the day following the trade conclusion (T+1).

The launch of anonymous REPO will give more opportunities for risk-free distribution and raising of cash funds and securities:

there is no need to set limits for counteragents;

fair (market) rates formation;

Central counterparty guarantee of obligations fulfillment.

Vadim Fedeev, Deputy Director, Stock market department, comments: "Anonymous REPO is a significant step forward in the REPO market development in Russia. For this type of trades the main trade terms depend only on the market situation and not on the "quality" of a counteragent. Thus market participants will enjoy reduced time and for concluding trades as well as risk minimization even at high volatility levels".

All securities traded on RTS Standard will be admitted to trading in anonymous REPO trading mode. The experience of 2008-2009 proved high demand for the non-anonymous REPO market as a tool for regulating liquidity levels. However, time-consuming procedures in assessing trade counteragents and procedures for setting their limits greatly reduced the effectiveness of transactions of this kind. Anonymous REPO does not involve any of those and has great potential for developing the system of liquidity management by the Russian and foreign companies.

On September 3, 2010 the terms for trades concluded on RTS Standard also change. Settlement shall take place at 5:00pm MSK on T+4 day.

The change in the time for obligations fulfillment gives market participants an opportunity to deposit assets on the settlement day, i.e. raise additional profit from distributing cash funds and securities, which, undoubtedly, makes RTS Standard even more attractive for a wider range of market participants.

In case of delivery, the size of trading participants’ obligations shall be determined basing on the settlement price as of intraday clearing session on T+4 day.

RTS Standard sets a totally new standard for equity trading in Russia. It will facilitate building up the liquidity of the Russian securities market, curb counterparties’ risks and boost development of the infrastructure. It aims to attract substantial international investor interest into the local equity market due to the applied global standards of trading.

RTS Standard offers CCP trading in anonymous order book without full advance depositing of assets and with settlement on T+4. The market hours are from 10.30 am to 11.50 pm MSK. The range of instruments includes top 22 liquid stocks of Russian issuers. RTS Standard also offers portfolio margining with trades made on FORTS, RTS’s derivatives section, which makes trading in all the instruments possible using a single, consolidated cash position.