MICEX-RTS Group Released Review of 2011

OREANDA-NEWS. January 16, 2012. Year 2011 became a milestone in the history of the Russian stock market. In February 2011 MICEX and RTS Stock Exchanges announced their intention to merge. In September the merger of the MICEX and the RTS was approved by the Federal Antimonopoly Service of the Russian Federation, аnd in December 19, 2011 Russia’s two major exchanges became a single company named OJSC MICEX-RTS.

Currently OJSC MICEX-RTS is the largest Russian trading venue in terms of trading volume and number of clients that plays a key role in developing the financial sector in Russia. The Exchange provides a transparent process for determining fair market values of Russian assets with a full range of trading and post trading services. The whole Exchange infrastructure is available for market participants to enable them to trade in stocks, bonds, currencies, mutual funds units, commodities and futures and option on all categories of assets.

By the end of the year, total trading volume on all MICEX-RTS markets reached USD10.1 trillion or RUB297.9 trillion.  In particular, securities market trading volume amounted to USD1.05 trillion or RUB30.7 trillion, the derivatives market value traded was USD1.9 trillion or RUB56.8 trillion, the currency and money market trading volume was USD7.1 trillion or RUB210.4 trillion and the commodities market trading volume was USD259 million or RUB7.6 billion.

The MICEX-RTS Group ranked among the top 20 largest global exchanges in terms of securities market trading volume and among the top 10 largest global futures and options trading venues in terms of derivatives market trading volume.  In 2011 total number of trades across all MICEX-RTS markets exceeded 358.5 million. At the end of the year, the aggregated capitalization value of all stocks traded in MICEX-RTS totaled USD800 billion.

According to the last year results, the Exchange was the number one trading venue by volumes traded in all segments of the stock market not only in Russia and former Soviet countries, but also among the East European countries.

From mid 2011, all participants of the Russian stock market gained an opportunity to access all the exchange services through a single entry point. Such the opportunity allows them to cut their costs and raise incomes. 

In 2011 a huge number of activities was done to integrate working processes of the two exchanges, including: the synchronization of the opening hours for the securities, derivatives and currency  markets; launching trading in the first joint instrument, i.e. futures and options on the MICEX Index, launching calculation of the RTS Index and the RTS Indices family based on the USD/RUB exchange rate generated on the MICEX currency market. In addition, the main principles for the integration of the securities and derivatives markets, the MICEX and RTS indices were developed and introduced.  A combined list of securities admitted to trading was formed.  All stocks traded in MICEX-RTS were admitted to be settled via the DCC-NSD interdepository link.

In 2011, according to business weekly magazine "KOMPANIYA", the MICEX and RTS merger was awarded "Deal of the year".

In 2012 the integrated exchange MICEX–RTS will have to work hard to build the efficient trading and settlement infrastructure.  This includes the launch of the T+n trading mode on the securities market, selection of a technological platform that will allow introducing a single account for trading on the spot and derivatives markets. The existing indices will be transformed into a single family of indices with uniform rules and single calculation bases. One of the milestones in the 2012 integration process will become a merger between National Settlement Depository (NSD), Depository Clearing Company (DCC) and RTS Settlement Chamber.

The MICEX-RTS integrated exchange will facilitate the implementation of state-of-the-art technologies on the Exchange, establishment of the single trading platform that will allow investing in all categories of Russian assets as well as a substantial improvement of the interaction process between the integrated exchange business units and market participants.

The integration will help traders to cut expenses on position management, make the risk-management system transparent and lay down the foundations for the development of a center of liquidity in Russia.

"Last year results demonstrate a substantial positive impact of the Russia’s two largest bourses merger on operating performance", said Ruben Aganbegyan, President and Chief Executive Officer of MICEX-RTS. "Today, we realize that we have the huge potential to become the international financial center and join the ranks of leading global exchanges".

2011 MICEX-RTS Highlights