MICEX Announced New Versions of Rules of Securities Trading
OREANDA-NEWS. November 29, 2012. On November 22, 2012 the FFMS of the Russian Federation registered the new versions of the Rules of Securities Trading and the Rules for Admission to Trading of the Closed Joint-Stock Company "MICEX Stock Exchange" that had been approved by the MICEX Stock Exchange Directorate on November 26, 2012. The new versions of the Rules will take effect on December 4, 2012.
According to the new version of the Rules of Securities Trading:
It will be possible to execute transactions with partial collateral within such trading modes as "Repo with the CCP: off order book orders" and "Repo with the CCP: order book orders".
With regard to the development of the T+2 settlement cycle, the Rules will provide with special trading modes to execute transactions with partial collateral, i.e. " Main trading mode T+" and "Negotiated trades with the CCP”. The modes specified ought to become available for the trading participants in 2013. "Main trading mode T+" is an equivalent of “Main trading mode” and is designed for executing trades with partial collateral and T+2 settlement.
A new period, "Closing auction", which shall replace the current post-trading auction in the future, is added to the Main trading mode. The procedure of the Closing auction is expected to encourage big institutional investors including non-residents to execute transactions in this period and it will let to determine the representative closing price of a security.
It will be possible to perform deliveries under the FORTS derivatives market futures contracts on RF government bonds (OFZ) by executing trades within the trading mode "Settlement of derivatives contracts". The proposed procedure of delivery on futures contracts will let drawing foreign banks to the futures market and will result in the considerable increase of Russian banks and investment companies" trading volumes.
Some amendments to the procedure of trade suspension and resuming trades while a technical outage or a force majeure on the markets of the Moscow Exchange Group occurs are introduced in order to unify the recovery actions.
According to the new version of the Rules of Admission to Trading:
Some additional requirements are provided for trading participants to be admitted to trading within the trading modes of the Main Market sector where transactions with partial collateral are executed. A trading participant will be admitted to trading within the modes mentioned above, if it meets the requirements set by the Clearing organization.
The provisions are worked out introducing trading participants of type A and type B. The Exchange imposes the same requirements on these participants and sets special procedures for rendering services on trade execution (conclusion) to them. In accordance with the laws and regulations of the Russian Federation, “Trading participants of type A” shall refer to the trading participants being general agents for OFZ placement, buy back and exchange. All other trading participants shall apply to “Trading participants of type B”.
The procedure for taking subscription fees is modified. According to the new provision, a quarterly follow-up subscription fee shall not be paid by a trading participant which was excluded from the list of trading participants in the quarter. The provision shall come into force on January 9, 2013.
The provisions concerning accreditation of trading participants" representatives are updated. In particular, it is stated that the Exchange shall provide credentials only to traders. The other representatives of a trading participant (analysts and inspectors) ought to act under an ID which will be allowed not for an individual, but for a trading participant.
The recommendations and proposals of the CJSC MICEX Stock Exchange Council regarding the Section of the current version of the Rules which deals with information disclosure and applying sanctions against the trading participants that violate laws and regulations of the Russian Federation are considered.
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