OREANDA-NEWS. August 1, 2012. The Committee on fixed income securities of CJSC MICEX Stock Exchange (member of Moscow Exchange Group) held a meeting. The main topics for discussion were Exchange"s initiatives for developing the fixed income market and enhancing its transparency as well as the listing reformation.

The Committee members discussed the main ideas of developing listing on the Exchange aimed at optimization of the quotation list structure and elaboration of effective criteria for inclusion and maintenance of securities to be listed.  The Exchange was advised to take into account ratings of issuers and certain bonds issues given by both international and Russian rating agencies. It was also recommended to include specific features of the fixed income market (early redemption of some bonds in the issue, amortization) while evaluating the issue volume and other parameters of bond issues.

In addition, the meeting participants considered results of trading during public holidays in Russia and advised that the Exchange should not open trading on holidays.

Issues related to development of market making and algorithmic trading on the fixed income market and introduction of the book orders for direct orders were also discussed at the meeting. The Committee members recommended the Exchange to take into account interpersonal style for interaction on the bond secondary market with its operations based on "recognizability" of quotes maintained by certain participants of the market, and to elaborate the introduction of order book for direct orders.

The Committee also advised the Exchange to separate the trading volume of the Russian Federation government bonds which were transferred to MICEX Stock Exchange from the Moscow Exchange Government Securities Market in March this year, to other ratings of trading members activity and exclude these figures from the current bond ratings.  Furthermore, it was suggested that ratings of the trading modes "Bonds: main trading mode" and "Bonds: negotiated trades mode" should be aggregated. In this connection, during August 2012, trading members will receive an offer to send a letter to the Exchange with their consent to take part in the above-mentioned ratings that will allow launching the ratings publication from September 2012.

The participants of the meeting also discussed technologies related to the “on-exchange book-building”, i.e. collection of unsecured orders for placing deferred interest bonds as alternative to collection of orders through bids by facsimile and MS Office order book. The mechanism for implementation of the project in the software environment of the Exchange elaborated by the Exchange on the Committee"s initiative in 2011 was approved by the Committee.