OREANDA-NEWS. February 04, 2011. Shareholders of MICEX signed non-binding Letter of intent to acquire controlling interest of OJSC RTS. The Letter was signed with RTS Stock Exchange shareholders owning together over 50% of the company’s share capital. 

According to the Letter the legal and business terms of the deal  must be developed by 15 April.

The deal is expected to be concluded by the end of the first half of 2011. In order to conclude the deal it will be necessary to conclude some specific corporate procedures in addition to satisfying the requirements of the Federal Antimonopoly Service and other regulatory agencies. The merger of technology services is expected to be completed during 2011-2012.

In accordance with the terms of the Letter 35 per cent of the consideration for RTS will be paid in cash and 65 per cent will be paid in shares of CJSC ‘MICEX’. MICEX Group will invite other RTS Stock Exchange shareholders to join the Letter of intent on these terms.

The merger of the two largest Russian bourses will facilitate the establishing of a powerful, integrated financial market infrastructure, professionally managed and run according to up-to-date principles of interaction between all market participants. This step will become a key element in establishing Moscow as an international financial center.

‘This letter will launch the process of merging Russia’s two leading bourses based on the market evaluation of both companies.  Integration of platforms, technologies and professional potential of  our companies  will allow us to create a strong trading venue in Moscow in the near future with the prospect of becoming one of the most rapidly developing exchanges in the world. In signing the letter we are confident that the merger will bring additional value for the shareholders of MICEX and RTS Stock Exchange as well as having a positive impact on the Russian market, due to the substantial growth of overall liquidity levels’,  said Ruben Aganbegyan,  the MICEX President.

Roman Goryunov, Chief Executive Officer of OJSC RTS, believes that signing of the letter represents a considerable step forward in creating integrated powerful exchange infrastructure. ‘The pooling of best practices accumulated by both organizations will result in large synergy effects and strengthen the standing of Russia on the international markets. The dynamic and effective management team, state-of-the-art trading technologies, services and instruments and highly effective  risk-management systems will become the foundation for Russia’s success on the global financial market’.

The MICEX Group is an integrated exchange structure that provides electronic trade organization, clearing and settlements on trades, and depository and information services based on a single technological platform. The Group includes ZAO MICEX, the ZAO MICEX Stock Exchange, the National Mercantile Exchange, the MICEX Settlement House, the National Depository Center, the National Clearing Center, ZAO MICEX – Information Technologies, regional exchange and settlement centers. These organizations serve over 1,700 participants in the on-exchange market, including leading Russian banks and brokerages located in Moscow and other large financial and industrial centers of Russia. In June 2010 PFTS Stock Exchange (Ukraine) joined MICEX Group.

At the moment a number of key segments of the financial market operate within the framework of the MICEX Group: the foreign exchange, the government bonds market, the equities market, the corporate and regional bonds market, the derivatives market and the commodities market.

RTS Group is an integrated trading and settlement complex  providing the full range of qualitative and reliable exchange services. The Group consists of OJSC "Russian Trading System" Stock Exchange,  RTS Clearing Center, RTS Settlement Chamber, CJSC "Depository Clearing Company, RTS Tender. The Group includes also subsidiaries such as the Ukrainian Exchange, Eurasian Trade System Commodity Exchange JSC in Kazakhstan and  RTS Exchange Europe Ltd in London.

RTS provides a wide range of opportunities to both Russian and foreign investors, professional institutions and their clients for trading in shares, bonds, futures and options contracts on shares and bonds of Russian companies, RTS Index, RTS Standard Index, oil, gold, silver, platinum, palladium, copper and sugar.

OJSC RTS is an organizer of trading on FORTS, the derivatives market of RTS, being among the TOP-10 global derivatives exchanges, and on RTS Standard equities market with settlement on T+4 and partial advance depositing of assets.