Moscow Exchange

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Moscow Exchange
Moscow Exchange Logo.svg
Moscow Exhacnge main building.jpg
TypeStock exchange, Futures exchange, FX exchange
LocationMoscow, Russia
Founded19 December 2011; 10 years ago (2011-12-19)
OwnerPublic company
Key peopleYury Denisov (CEO)
CurrencyRussian ruble
No. of listings219[1]
Market capUS$ $698.21 billion[2]
IndicesMOEX Russia Index, RTS Index
Websitemoex.com/en/

The Moscow Exchange (MOEX; Russian: Московская биржа, tr. Moskovskaya birzha, IPA: [mɐˈskofskəjə ˈbʲirʐə]) is the largest exchange in Russia, operating trading markets in equities, bonds, derivatives, the foreign exchange market, money markets and precious metals. The Moscow Exchange also operated Russia's central securities depository, the National Settlement Depository, and the country's largest clearing service provider, the National Clearing Centre.[3]

Trading at the exchange was suspended on 24 February 2022 following Russia's invasion of Ukraine. Trading remained suspended until 21 March, and was only then opened for state bonds.[4]

History[edit]

Moscow Exchange was established on 19 December 2011 by merging the two largest Moscow-based exchanges, the Moscow Interbank Currency Exchange (MICEX) and the Russian Trading System, hence the name "Moscow Exchange MICEX-RTS".[5] Both organisations had been formed in the 1990s and were the leading Russian exchanges for two decades with their MICEX Index and the RTS Index. The merger created a single entity[5] and advanced Russia's plans to turn Moscow into an international financial centre.[6]

The exchange completed its initial public offering on 15 February 2013, raising 15 billion rubles (approximately $500 million).[7] The offering, at the time the largest ever held exclusively in Moscow, was more than twice oversubscribed and drew demand from institutional investors globally. The exchange's shares were included in the MSCI Russia Index in November 2013.[8] In July 2014 the Central Bank of Russia, the largest shareholder of the exchange, completed the public sale of shares representing nearly 12% of the exchange.[9] A Russian federal law requires[needs update] the Central Bank to fully sell its stake in the exchange by 1 January 2016.[10] In October 2018, Moscow Exchange launched the trading of deliverable gold futures on its Derivatives Market.[11] Gold are delivered through precious metals market spot section.[11]

Suspension of trading due to the Ukraine crisis[edit]

On 24 February 2022, following the start of a full-scale invasion of Ukraine by Russia, the Moscow Exchange suspended trading until further notice.[12] On 27 February, TASS reported that foreign clients are banned from selling any securities, effective immediately.[13][14]

On 4 March, it was announced that the exchange had been suspended from the World Federation of Exchanges.[15][16] On 18 March it was announced that trading in OFZ bonds should be resumed on 21 March.[4] On 23 March, it was announced that trading of 33 ruble securities would resume on 24 March for residents of Russia, with foreign investors being restricted to repo deals and deals with derivative instruments. It was also announced that the act of short selling would be banned.[17] It remains unclear, if and when the exchange will return to regular operation.

Management[edit]

The Executive Board consists of five members:

  • Yury Denisov,[18] chief executive officer since 2019 and a past supervisory board member[19]
  • Andrey Selyuk, chief financial officer since 2022[20]
  • Andrey Burilov, chief information officer since 2020,[21]
  • Igor Marich, Managing Director of Sales & Business Development and a 20-year veteran of Moscow Exchange[22]
  • Dmitry Shcheglov, chief operating officer, a veteran of Moscow Exchange and its predecessor MICEX.

For 2020-2021 the board consists of the following members:[23]

  • Oleg Vyugin (chairman), a respected economist and former head of the Russian financial markets regulator[24]
  • Andrey Golikov, board member at National Clearing Centre
  • Maria Gordon, a former emerging market portfolio manager at Goldman Sachs and PIMCO
  • Valery Goreglyad, chief auditor of the Bank of Russia
  • Bella Zlatkis, deputy chairman of the management board at Sberbank and former deputy finance minister of Russia
  • Vadim Kulik, deputy president of VTB Bank[25]
  • Maxim Krasnykh, global chief operating officer at Gett[26]
  • Paul Bodart, former chief executive officer of BNY Mellon Europe[27]
  • Ramon Adarraga, former executive chairman of Bolsas y Mercados Españoles Market Data[28]
  • Alexander Izosimov, former chief executive officer of Vympelcom
  • Oskar Hartmann, co-founder of Fast Lane Ventures and a board member of Alfa-Bank[29]

Shareholders[edit]

Moscow Exchange's shares are publicly traded under the ticker MOEX. As of December 2021 approximately 63% of shares were in the free float, while the following held blocks of shares: Central Bank of Russia (11.75%),[30] Sberbank (9.9%), Vnesheconombank (8.4%), European Bank for Reconstruction and Development (6.1%) and US asset management firm Capital Research and Management Company,[31] which manages more than $1.3 trillion globally in retirement assets.[32] In total, US investors own 36.8% of the shares of Moscow Exchange and UK investors own 10.1%.[33] Additionally, 360,000 Russian retail investors own MOEX shares.[34]

Trading markets[edit]

Equity & Bond Market[edit]

The Equity & Bond Market is a key platform for Russian businesses to raise capital and for domestic and international investors to access equity and debt investment opportunities. The marketplace is the main trading venue for Russian stocks as well as government, municipal, and corporate bonds. In 2013–2014, 16 companies placed stock via Moscow Exchange, raising a total of approximately RUB 200 bln. On the fixed income side, more than 400 bond issues were placed, raising more than RUB 3.4 trillion for issuers.

Moscow Exchange includes shares of many of Russia's largest companies including Gazprom, Sberbank, Rosneft, Lukoil and VTB.[35]

Most global investment banks began to provide their clients with DMA to the Russian market in 2013.[36] As a result of regulatory changes, the international central securities depositories Euroclear and Clearstream now offer settlement services for Russian stocks and bonds.[37]

In addition to attracting international investors to trade on its platform, Moscow Exchange is focused on further developing the domestic investor base. The number of individuals with brokerage accounts on Moscow Exchange has reached 17 million as of January 2022, which represents 11% of Russia’s population.[38]

Foreign Exchange and Money market[edit]

Moscow Exchange's FX and Money Market is a key element of the Russian financial system. The Bank of Russia uses the Exchange's infrastructure to implement monetary policy and provide liquidity to the market through repo transactions and FX swap transactions. For its domestic and international clients, including banks and corporates, Moscow Exchange offers a range of products to manage liquidity and FX exposure. It is the centre of pricing for RUB and offers many RUB currency pairs, all with tight spreads based on a transparent order book.[39]

FX Market All transactions (spot and swap) on the FX market are centrally cleared by National Clearing Centre. In September 2014, average daily trading volume across all currency pairs was US$22.4 bln.[40]

While RUB/USD and RUB/EUR remain the most traded currency pairs, Moscow Exchange also actively promotes trading in other currencies. In particular the RUB/CNY pair has been well received by the market[41] and trading in the GBP and HKD were launched in late 2014.[42]

Derivatives market[edit]

Moscow Exchange is one of the 10 largest exchange platforms for derivatives trading globally.[43] The Derivatives Market facilitates trading of options contracts on, as well as futures contracts on indices, shares of both Russian and foreign companies, currency pairs, precious metals, energy and agricultural products.[44]

Futures on the RTS Index ranked sixth among the world's most actively traded derivatives on stock market indices according to data from the Futures Industry Association as of June 2014. Futures contracts on the U.S. dollar-Russian ruble are ranked first in global liquidity, according to the Futures Industry Association.[45]

As of October 2014, 58 types of futures and 18 types of options are traded on the Exchange.[46]

Commodities markets[edit]

Precious metals trading[edit]

Moscow Exchange introduced spot trading in gold and silver in 2013. It has postponed a launch of trade in platinum and palladium by end of October or early November 2014 in order to do additional testing of the trading and clearing system.[47]

Grain trading[edit]

National Mercantile Exchange is Russia's platform for spot grain trading, as well as in deliverable futures on agricultural products. Since 2002, National Mercantile Exchange has been the platform by which the Russian state executes interventions in the grain market.[48]

Post-trade services, subsidiaries[edit]

Moscow Exchange subsidiary National Settlement Depository (NSD) was granted status as Russia's Central Securities Depository in 2012. Subsequently, Euroclear and Clearstream opened accounts with the NSD, allowing international investors access to Russian bonds and equities.[49] Another Moscow Exchange subsidiary, National Clearing Centre (NCC), is Russia's largest clearing center and is the Central Counterparty (CCP) across all Moscow Exchange markets.

See also[edit]

References[edit]

  1. ^ "Instruments". Moscow Exchange. Retrieved 26 August 2017.
  2. ^ "tradinghours". tradinghours.com. Retrieved 20 April 2020.
  3. ^ "Moscow Exchange". Moscow Exchange.
  4. ^ a b "Moscow Exchange To Resume Trading Of Government Bonds On Monday". the deep dive. 19 March 2022. Retrieved 19 March 2022.
  5. ^ a b "Micex and RTS merger creates Russian Exchange powerhouse". newswire.ca. 19 December 2011.
  6. ^ "Russia's Micex and RTS set to complete merger". Financial Times.
  7. ^ "Themes of the week - Moscow Exchange". Kommersant. 18 February 2013.
  8. ^ "LSR Group, Inter RAO, TMK Tumble on MSCI Deletion: Moscow Mover, Ksenia Galouchko". 8 November 2013.
  9. ^ "Russian Stocks Stagnate, but Moscow Exchange Shares Soar". Institutional Investor. 9 July 2014.
  10. ^ "Russian central bank decides to sell Moscow Exchange shares". Reuters. 1 July 2014. Retrieved 27 August 2014.
  11. ^ a b "Moscow Exchange launches gold futures with physical delivery". LeapRate. 10 October 2018. Retrieved 11 October 2018.
  12. ^ "Moscow Stock Exchange Suspends Trading After Russia Attacks Ukraine". Wall Street Journal. 24 February 2022. Retrieved 27 February 2022.
  13. ^ BNO News [@BNONews] (27 February 2022). "BREAKING: Russia bans foreign clients from selling their securities, effective immediately - TASS" (Tweet). Retrieved 27 February 2022 – via Twitter.
  14. ^ "Russian c.bank orders block on foreign clients' bids to sell Russian securities - document". Reuters. 27 February 2022. Retrieved 27 February 2022.
  15. ^ "Moscow Exchange Suspended From Global Trade Group". Wall Street Journal. 4 March 2022. Retrieved 4 March 2022.
  16. ^ "Russian Stock Market Suspended From World Federation of Exchanges". Newsweek. 4 March 2022. Retrieved 4 March 2022.
  17. ^ Reuters (23 March 2022). "Foreigners banned from selling Russian stocks as market set for limited reopening". Reuters. Retrieved 23 March 2022.
  18. ^ "Management- Moscow Exchange". Moscow Exchange. Retrieved 4 March 2014.
  19. ^ "Moscow Exchange names new CEO to oversee growth plans". Reuters. 16 April 2019. Retrieved 9 June 2020.
  20. ^ "BRIEF-Moscow Exchange names Andrey Selyuk new CFO". Reuters. 9 December 2021. Retrieved 25 January 2022.
  21. ^ "MOEX Appoints Andrey Burilov as Chief Information Officer | Finance Magnates". Finance Magnates | Financial and business news. 1 June 2020. Retrieved 9 June 2020.
  22. ^ "Moscow Exchange - Igor Marich, Managing Director of Money and FX Markets, Moscow Exchange". Moscow Exchange. Retrieved 9 June 2020.
  23. ^ "Moscow Exchange". Moscow Exchange. Retrieved 10 June 2020.
  24. ^ "BRIEF-Moscow Exchange: Oleg Vyugin Named Chairman of the Supervisory Board". Reuters. 26 April 2018. Retrieved 10 June 2020.
  25. ^ "Vadim Kulik elected Deputy President and Chairman of VTB Bank". www.vtb.com. Retrieved 10 June 2020.
  26. ^ "Moscow Exchange - Maxim Krasnykh". Moscow Exchange. Retrieved 10 June 2020.
  27. ^ "Wim Hautekiet to Succeed Paul Bodart as CEO of BNY Mellon Europe - Global Custodian – The Leading quarterly magazine covering the international securities services industry". www.globalcustodian.com. Retrieved 10 June 2020.
  28. ^ "BME Reorganizes Data, IT Divisions". WatersTechnology.com. 17 January 2017. Retrieved 10 June 2020.
  29. ^ "Oskar Hartmann". Alfa Bank. Retrieved 10 June 2020.
  30. ^ "On OJSC Moscow Exchange shares selling price". Bank of Russia. 2 July 2014.
  31. ^ "Shareholder Structure". moex.com. Retrieved 26 January 2022.
  32. ^ "Employer-Sponsored Retirement Plans". capitalgroup.com. Retrieved 26 January 2022.
  33. ^ "Shareholder Structure". moex.com. Retrieved 26 January 2022.
  34. ^ "moex.com". moex.com. Retrieved 26 January 2022.
  35. ^ "Constituents — Moscow Exchange | Indices". web.archive.org. 20 March 2017. Retrieved 6 October 2021.
  36. ^ "Global banks battle Russian brokers for equties trading". Financial News. 5 September 2013.
  37. ^ "Russia Stocks Erase Gain on Poroshenko Warning as Sistema slides". Bloomberg. 18 September 2014.
  38. ^ "Moscow Exchange". Moscow Exchange.
  39. ^ "About the FX Market". Moscow Exchange.
  40. ^ "Moscow Exchange September Forex turnover jumps 10% MoM and 28.1% YoY". Leap Rate. 10 January 2014.
  41. ^ "Chinese yuan trading volume up 60% in September on Moscow Exchange". Financial. 4 October 2014.
  42. ^ "Archived copy". Archived from the original on 17 February 2015. Retrieved 17 February 2015.{{cite web}}: CS1 maint: archived copy as title (link)
  43. ^ "World Federation of Exchanges - Monthly Reports". Archived from the original on 17 August 2014.
  44. ^ "Futures Market Instruments".
  45. ^ "Trading Volume". Futures Industry. 16 September 2014.
  46. ^ "Moscow Exchange". Moscow Exchange.
  47. ^ "Moscow Exchange launches trading in precious metals". Moscow Exchange. 21 October 2013.
  48. ^ "National Mercantile Exchange". Archived from the original on 12 December 2013. Retrieved 6 December 2013.
  49. ^ "Project "South Stream" cannot be stopped, said the head of Gazprom Invest". Business-Tass. 3 December 2013.

External links[edit]

Coordinates: 55°45′19″N 37°36′22″E / 55.75528°N 37.60611°E / 55.75528; 37.60611

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