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Moscow Exchange of MICEX-RTS

Company

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Group of MICEX-RTS - the organizer of biddings in the currency, share, urgent and monetary markets of Russia.

Owners:
Central Bank of Russian Federation - 11,77%
Sberbank - 9,99%
Vnesheconombank - 8,4%
EBRD - 6%
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Assets

Assets

+ Moscow Exchange (MICEX-RTS)
+ EBRD

The Moscow Exchange group is multifunction stock exchange on the stock trading, bonds, derivative instruments, currency, instruments of the money market and goods:

  • renders to the clients a full stroke of trade and post-trading services
  • offers information products and technology services
  • actively promotes development of the Russian financial market, its infrastructure, improvement of technologies of trade

Assets

The group of MICEX-RTS is the largest exchange in Russia, the CIS countries, Central and Eastern Europe. MICEX-RTS has electronic trade, clearing, settlement and depository systems conforming to the modern international standards.

The largest stock exchanges of Europe on capitalization, 2019
The largest stock exchanges of Europe on capitalization, 2019

1. The Pan-European Euronext exchange – $3.379 trillion market capitalization

2. The London Stock Exchange of London Stock Exchange – $3.272

3. The German stock exchange Deutsche Borse – $1.738 trillion

For the beginning of 2011 using global networks of data transmission more than 1700 remote jobs at offices of the banks, broker companies and other financial institutions which are in more than 100 Russian cities and abroad are connected to the MICEX exchange. Over 300 broker systems allowing to service investors via remote terminals using Internet technologies are connected to the shopping complex of MICEX.

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IT infrastructure of the Moscow Exchange

The Moscow Exchange — one of the most complex exchanges in the world, including in terms of technology processes and system developments.

Development of information systems of exchange 2013-2018

Development of a trade and clearing complex

Operational indicators of the MOEX trading systems
In September, 2016 stress testing is held, one of the purposes of which is operational testing of the TKS complex with DPC DataSpace as the basic (Is more detailed about the project here).


At the Moscow Exchange in parallel there are five main markets constructed on three trade and clearing systems

In more detail about a system you look

History

2019

Brokers begin to trade in assets in the systems. The exchange loses profit

The Moscow Exchange in 2020 will lose at least 10% of profit. The Moscow exchange finally lost control over cash flows - brokers became so big that can already trade in the majority of financial instruments in themselves.

In the internal documents Exchange "internalization of sell-side by players" calls this threat and appropriates it the maximum level of danger. According to the estimates of management, some (read "all the largest") players will increase internalization level from 40% to 60% only for 2020.

It means that in 2020 the Moscow exchange can lose a third of income in the most profitable segments - the stock trading, bonds and currency. Brokers can be understood too: on decrease in rates and the general fall of profit in the sector it is necessary to optimize all cash flows and to get rid of intermediaries everywhere where it is possible.

Yury Denisov replaces Alexander Afanasyev at the head of the exchange

In April, 2019 the supervisory board of the Moscow Exchange made the decision ahead of schedule to stop powers of the head of the exchange Alexander Afanasyev in communication by "early accomplishment of the tasks provided by the current strategy". As the successor the supervisory board offered one of the members, Yury Denisov (also heads the supervisory board of National Clearing Centre entering into group of the exchange). He should be confirmed to the new post after approval of the Central Bank.

Alexander Afanasyev held the chair of the head of the exchange seven years, on March 23, 2018 he was re-elected for two years. As Alexey Kudrin then heading the supervisory board of the exchange (now the post is held by Oleg Vjugin) explained, powers prolonged for completion of strategy implementation of 2015-2020.

But according to mister Afanasyev, "strategy is implemented this year, i.e. ahead of schedule". Now development of new five years' strategy which will be provided "to the coming months" is completed. Rotation of top management in five-seven years — the accepted corporate practice of the public companies, Alexander Afanasyev adds, calling a present situation "optimal" for delegation of power to Yury Denisov.

The Central Bank said that "are satisfied with seven years' activity of the exchange" under the leadership of mister Afanasyev. The decision of the supervisory board of the exchange not to postpone acceptance of new strategy and formation of new management team for its implementation in the Central Bank is called "logical". There support appointment of mister Denisov, noting, however, that "formal reconciliation procedures still ahead".

Yury Denisov was a part of the supervisory board of the exchange nine years (with a break in 2012). In different years he headed the commission on risk management, the Ethics Commission and exchange practice, the commission on audit, was a member of the commission on strategic planning, the commission on appointments and remunerations and the commission on the budget. Started a career future new head of the exchange in VEB, long worked in Evrofinance bank and VTB where directed work of treasury, management committee as assets and liabilities and also was a member of credit committees.

Sources of Kommersant both among large bidders, and among close to the exchange claim that change can be connected with a position of the Bank of Russia, in particular the first deputy chairman of the Central Bank Sergey Shvetsov[1].

In opened it it was shown when in October, 2018 mister Shvetsov on the sidelines of the forum Finopolis 2018 said that the Moscow Exchange suspended listing for the Russian issuers who fell under the most tough sanctions from the American Ministry of Finance. The exchange, strangely enough, did not confirm and did not refute the statement of the representative of the regulator. And Alexander Afanasyev was forced to make very careful statement that at the platform "there is no obligation to accept all papers in listing". According to one of top managers of large investment company, "the possible conflict can be connected with the idea of the management of the Central Bank to create section of sanctions assets in what the Moscow Exchange as the public company, is hardly interested".

As the president of the Moscow International Currency Association (MICA) Alexey Mamontov explains, the specifics of the Moscow Exchange consist that it is controlled one shareholder — the Bank of Russia which at the same time is also the market regulator. At the same time solutions are defined often and one person representing this shareholder. According to mister Mamontov, so was also in the 1990s and when the exchange was headed by Alexander Zakharov, and the first deputy chairman of the Central Bank Andrey Kozlov was her curator. And when at the beginning of the 2000th years Alexander Potemkin came to the exchange, the deputy chairman of the Central Bank Konstantin Korishchenko was a curator of the exchange. And after mister Korishchenko headed the exchange, the first deputy chairman of the Central Bank Sergey Shvetsov began to supervise its activity.

At the same time, according to mister Mamontov, there are also objective reasons of replacement of the leadership. According to him, in activity of marketplace "the cheerfulness charge is lost" which she received after accession of the RTS exchange. After creation of institutes of central depository, the central counterparty and some other it actually turned into the share monopolist whose development slowed down. For stimulation of further development as the head of MMVA considers, the core shareholder in such conditions needed the person, "from which it is possible to require which had no baggage of success".

2018: Dividends at the end of year 17.5 billion rub

The exchange remains rather effective enterprise even in difficult economic conditions. Since 2011 its net profit grew three times, though decreases in the last three years. Also the exchange continues to pay high dividends. In particular, at the end of 2018 the supervisory board suggests to pay 17.5 billion rubles, i.e. 89% of net profit.

2016: The Chinese company leaves the capital of the Moscow Exchange

The Chinese fund Chengdong Investment decided to sell the share in the Moscow Exchange, reported in February, 2016 to Reuters. The fund possessed a minority 5.2 percent stake in the Russian marketplace.

The transaction is estimated at 10.6 billion rubles, the Chinese company sells in total 119.1 million shares. Goldman Sachs acts as the organizer of the transaction.

The transaction passes according to the scheme of the accelerated bukbilding, the price for an action will be 89 rub.

According to the most Moscow Exchange, for December 31 of Chengdong Investment owned 5.58% of stocks (127 million 95.5 thousand securities). At that time it was the fifth in value packet in the exchange after the Central Bank of the Russian Federation (11.77%), Sberbank of Russia (9.99%), VEB (8.4%) and the EBRD (6%).

2012: Unicredit sells a part of a packet in the exchange

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After this transaction of RDIF about 2.7%, and Cartesian — 2.5% of capital stock of the Moscow Exchange of MICEX-RTS will belong. As a result of sale the share of UniCredit Bank in the capital of the company decreased to 6.2%.

Investment is carried out within the long-term development strategy of the Russian capital market and increase in attractiveness of the Moscow Exchange of MICEX-RTS as platforms for the local and foreign companies. Before RDIF and the European Bank for Reconstruction and Development (EBRD) became shareholders of MICEX-RTS.

"We are glad to an opportunity to invest in the excellent Russian company together with such dear private equity fund as Cartesian Capital — the CEO of RDIF Kirill Dmitriyev told. — This our second investment in the joint exchange, and we with Cartesian and the EBRD are ready and to keep further MICEX-RTS in the course of its growth and developments".

2011

The largest exchange in Eastern Europe and the CIS: the trading volume in all markets of $10 trillion

The total amount of biddings in all markets of MICEX-RTS in 2011 was 10.1 trillion dollars USA or 297.9 trillion rubles. The trading volume in the stock market of the joint exchange reached 1.05 trillion US dollars or 30.7 trillion rubles, on urgent – 1.9 trillion US dollars or 56.8 trillion rubles, on currency and monetary – 7.1 trillion US dollars or 210.4 trillion rubles, on commodity – 259 million US dollars or 7.6 billion rubles. On the trading volume in the stock market (an action and the bond) MICEX-RTS at the end of year is included into "twenty" of the largest exchanges of the world, and on turnovers of the forward market - in TOP-10 world leaders. The total quantity of transactions in all markets of MICEX-RTS in 2011 exceeded 358.5 million pieces. Total capitalization of the traded actions in MICEX-RTS on the end of the year made about 800 billion US dollars.

At the end of 2011 the exchange became the absolute leader in the trading volume in all segments of stock exchange market not only in Russia and the countries of the former USSR, but also in Eastern Europe.

Already from the middle of 2011 all participants of the Russian stock market had an opportunity to receive all exchange services through uniform point of entry. It allows them to minimize costs and to increase efficiency. In 2011 the huge complex of works on integration of the exchanges which included was carried out: unification of start time of biddings in the share, urgent and currency markets; start of biddings by the first joint tools – futures and options for the Index of MICEX, the beginning of calculation of the RTS Index and family of the RTS Indexes at the prices ruble/dollar directly from MICEX exchange market. Also the basic principles of integration of the share and urgent markets, the stock exchange indexes were developed and implemented. The general list of the securities admitted to trading is created. All actions traded in MICEX-RTS were allowed to the address on the bridge of NSD-DKK.

In 2012 a lot of work on creation of trade and settlement infrastructure is necessary to the joint exchange MICEX-RTS. In its framework start of biddings in the stock market in the +n mode T, the choice of a technology platform which will allow to introduce the single trading account on instruments of the spot and urgent markets is planned. The existing indexes will turn into uniform family with uniform rules and a single platform of calculation. Consolidation of NPO of NSD Ltd, DKK Ltd and NPO of Raschetnaya palata RTS (Ltd) will become one of important integration stages of the next year.

RTS Stock Exchange stopped existence

On December 19, 2011 JSC RTS Stock Exchange stopped the existence as the legal entity as a result of accession to MICEX Ltd, the long-term competition between two largest Russian stock exchanges so came to the end.

In addition to the questions connected with consolidation of the markets of both exchanges, depositaries and clearing houses, the management of MICEX-RTS should prove correctness of the decision on consolidation of the exchanges. For effective development of the stock market in Russia it is necessary to integrate not the exchanges, but settlement structures - NSD and DKK. "The exchanges there can be a set, and calculations uniform, at the same time equity participation of depositary of the Central Bank of the Russian Federation which acts as the guarantor of liquidity provision at the critical moments is important", - Vladislav Streltsov working in RTS since 1998, and who in 2003-2004 headed the exchange said. In this case, according to him, the state should not have undertaken risks of the forward market which more effectively and quickly is controlled market participants, and at the same time the state could be the guarantor of reliability of calculations. "It will be the main problem in work of the joint exchange which will lead to a conflict of interest of the state and market participants", - he noted.

Not less important problem which the management of the joint exchange should solve, - simultaneous existence of two spot markets within one exchange: classical market of RTS and spot market of MICEX. Liquidation of the classical market can close entry into the Russian stock market for foreign investors.

Dissatisfied with service of the new exchange wait only abroad. "In Russia there are no still alternative biddings. It is necessary to hope for market orientation of combiners and their readiness to build correct corporate management of new structure. Very much I hope that market participants will be able quickly to adapt to new conditions and formats, and they should not look for share happiness abroad", - the chairman of the supervisory board of Alor group Anatoly Gavrilenko wrote in the blog.

"For me the main event of 2011 is not consolidation of two largest exchanges, and what remained to NP RTS which as I hope, will be able to implement not less ambitious projects, than creation of the RTS exchange", - I. Tyryshkin told.

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The shareholding structure of the exchange during this period looked thus:

Consolidation with RTS

On February 1, 2011 the MICEX exchange signed the agreement of intent to purchase a controlling stake of the RTS exchange. It is sold by five shareholders: "Renaissance broker" (9.4%), Aton (9.8%), Alfa-Bank (9.6%), Troika Dialog (10%) and Da Vinci fund (14.9%). Total 53.7% of stocks of the oldest Russian[2].

The first deputy chairman of the Central Bank (the major shareholder of MICEX) Alexey Ulyukaev reported that for the purposes of the transaction it is defined that the cost of RTS — $1.15 billion, MICEX — $3.45 billion, i.e. a ratio 1:3. "It is supposed that 65% can be received by share in the capital of the united company, 35% — money" — Ulyukaev told. It turns out that five shareholders of RTS can receive up to 11.64% of MICEX.

RTS is estimated with an essential award: proceeding from the price of the last transaction in RTS capitalization of the exchange makes $605 million. The amount of $1.15 billion — result of business valuation ($840 million) plus a 37% award for a controlling stake, Ulyukaev explained.

If shareholders of RTS do not want to take stocks of MICEX and will prefer to receive all amount on hands — and they have such opportunity, Ulyukaev told — they will be left without award. In that case the transaction will be made proceeding from assessment of all exchange in $840 million, the director of the department of transactions in financial markets of the Central Bank Sergey Shvetsov specified.

If someone refuses money and will want to take away 100% of the share stocks of MICEX, the exchange will pay $200,000 for each percent.

As a result, according to Shvetsov, the share of shareholders of RTS in the joint exchange will not exceed 20% (17.9% proceeding from assessment of the exchanges. — Vedomosti).

At the end of December, 2010 the Board of Directors of MICEX Ltd approved the scheme of transition to the single share which provides carrying out an additional issue in 2011, the size is not determined yet, the president of MICEX Ruben Aganbegyan says. These papers will also be offered shareholders of RTS, he specifies.

"Consolidation of broker community and corporate management of all stock exchange infrastructure is important for us" — Aganbegyan says.

Ulyukaev calls the agreements signed yesterday the first step on consolidation of two exchanges, "friendly takeover". "We assume to sign all documents in the second half of April, 2011 — he added. — After that almost instantly the transaction will be closed". It will occur on April 15, 2011, specifies the source familiar with agreement details.

The next step — the IPO of MICEX and an exit of the Central Bank from its capital. By June 1, 2011 according to order of the government the plan for reduction of a state share in MICEX and in the expected united company will be submitted, Ulyukaev reminded. According to him, this plan — perspective for 2-3 years. Now the Central Bank has 36% of stocks of MICEX, and after consolidation of the exchanges its share will be reduced to less than 30%.

"the IPO is our basic purpose" — Ulyukaev told and added that shareholders of the joint exchange including the Central Bank, will not participate in the IPO. Shareholder protection of RTS "from failure of the state of carrying out the IPO of MICEX" became one of terms of transaction, according to Shvetsov. If shareholders of MICEX together with the Central Bank make the decision not to carry out the IPO of the joint structure, then MICEX will have to redeem from the current shareholders of RTS of their stock of the joint exchange which they will receive as a result of the transaction, with an award in the amount of 12% per annum to that price at which RTS is estimated now — $1.15 billion.

"This solution of shareholders, but I consider that conditions very good — the chairman of the board of RTS Roman Goryunov says. — This market offer". "The offered terms as shareholders suit us, they fair for both parties and offend nobody" — Jacques Der Megreditschjan, the chairman of the board of directors of RTS and the chief executive officer on business management of Troika Dialog believes.

Terms of transaction are offered to all shareholders and others will be able to join it, Ulyukaev explained. "We hope that other shareholders will also join" — Aganbegyan says.

Some are already ready. For example, KIT Finance to which the government did not permit to sell the EBRD 10% of shares of RTS for 2.1 billion rubles ($70 million). Under the terms of the transaction with MICEX the WHALE can gain $84 million for this packet. "By efforts of shareholders, the Central Bank and Aganbegyana process [consolidation of the exchanges] moved off dead center and purchased specific outlines, we with pleasure will consider any offer especially now when perspectives of development of two exchanges are clear," — the chairman of the board of directors KIT Finance Yury Novozhilov says.

"I will be forced to join the transaction — the chairman of the supervisory board of Alor owning 2% of RTS, Anatoly Gavrilenko says — though I consider consolidation wrong — because of it the competition between the exchanges will disappear".

This positive event, the head of FFMS Vladimir Milovidov considers: "Now the exchanges will have uniform shareholders and they will be able to make the coordinated decisions on development of the exchanges, not to begin parallel projects and not to face foreheads. They will concentrate on the competition external, but not internal".

Milovidov called the exchanges for consolidation long ago, considering that uniform, stronger marketplace is necessary for transformation of Moscow into the international financial center. The Russian stock exchange infrastructure should be built vertically that above there was a uniform group of shareholders, he told Vedomosti yesterday.

The united company has big perspectives, Goryunov is sure: "The transaction will give the chance to construct the consolidated structure using the best sides of two exchanges". All key employees of RTS will save the positions within two years from closing date of the transaction, the shareholder of the exchange tells.

The serious competition between RTS and MICEX was not, Milovidov, but argues now, according to him, means will not be sprayed and will concentrate on global projects, forward and spot market as a result will quietly develop and it will be reaching qualitatively new level of a stock exchange infrastructure.

  • On June 29, 2011 MICEX Ltd and JSC RTS announced signing of the framework agreement on consolidation of businesses which regulates an order and procedures of formation of uniform exchange holding.

From MICEX the transaction was signed by the President Ruben Aganbegyan, representatives of Sberbank, the Central Bank of the Russian Federation, UniCreditBank, VEB, VTB; from RTS: Chairman of the board Roman Goryunov, representatives Renaissance Capital, Troika Dialog, Aton, Da Vinci Capital, Alpha Capital.

Keyword parameters of the transaction

  • The cost of 100% of stocks of RTS, including exclusive – 34.5 billion rubles.
  • The cost of 100% of stocks of MICEX – 103.5 billion rubles.
  • The assets involved in business of RTS, but which are on balance of NP RTS will be transferred to balance of JSC RTS.
  • The corporate procedures connected with merger of companies are going to be completed at the beginning of 2012.
  • In 2013 the IPO of the joint exchange is planned.

Investment advisors of MICEX are VTB Capital and Credit Suisse. Morgan Stanley, Troika Dialog, Alfa-Bank, Renaissance Capital and also "Da Vinci Capital" and Aton acted as investment advisors of RTS.

As the first step of consolidation the managing command of the uniform exchange is created. The president of MICEX Ruben Aganbegyan will become a Chairman of the board. He will be responsible for the development strategy and creation of a stock exchange infrastructure necessary for creation in Russia of the international financial center. The chairman of the board of RTS Roman Goryunov will hold a position of the First Deputy Chairman of the board. Market development of the joint exchange will belong to its duties.

Essential attention will be paid to integration process. Within this process the working groups of staff of the integrating companies who, in close interaction with users, will develop a configuration of business of the created platform will be created. The integration committee will coordinate this work. The vertically integrated exchange holding which will provide a unique set of services in the organization of biddings, to clearing, settlement and depository services and technology services, with strong positions in Russia, Ukraine and Kazakhstan will be as a result created.

For ensuring open and clear process of consolidation there began work the website www.exchange-integration.ru. On it information on the structures of the working groups and committees of users, the calendar of integration events, presentation and other materials on consolidation is placed.

2010: Aganbegyan is the new president of MICEX

  • At the beginning of 2010 it became clear that two MICEX and RTS after all decided to separate depositaries. So, in June, 2010 NDTs sold RTS 37.29% of shares of DKK Ltd therefore the depositary completely passed under control of RTS.

  • Within implementation of new strategy also the management of MICEX was replaced. So, in June, 2010 the vice chairman of the board of Renaissance Capital Ruben Aganbegyan was appointed to the position of the president of MICEX Ltd. The Marina Medvedeva since September, 2010 holding a position of the vice president, board member of MICEX Ltd became the CEO of the MICEX Stock Exchange in November, 2010. As for Konstantin Korishchenko who headed MICEX Ltd since 2008, and since March, 2009 was also the CEO of the exchange, in November, 2010 he left MICEX, having headed the Russian division of Merrill Lynch[3].

2009: New strategy - a course towards the IPO

In the spring of 2009 the strategy of development for group of MICEX up to 2011 providing consolidation of group of MICEX which ultimate goal is transition of group of MICEX to "single share" with a possibility of carrying out the IPO is approved. Consolidation of NDTs Ltd and MICEX Clearing House Ltd as a result of which non-bank credit organization National Settlement Depositary private company was created "(The short name – NPO of NSD Ltd) became the first stage of this transition. During this corporate procedure MICEX increased the share in NSD to 99.961%. The registration in the property of MICEX Ltd of 99.998% of the MICEX Stock Exchange which came to the end in June, 2011 became the next step in this direction.

2008: Konstantin Korishchenko is the new president of MICEX

On October 24, 2008 the president of NP RTS Stock Exchange in 2000-2001, since July, 2002 Konstantin Korishchenko holding a post of the deputy chairman of the Central Bank of the Russian Federation was appointed the president of MICEX.

2007: Share derivatives

MICEX also tried to win back positions in the market of share derivatives - in June, 2007 at the exchange the urgent section was open, however by then took strong positions in this segment of the market of RTS. Also MICEX is not possible to compete with it on the forward market on share assets yet.

2005-2006: Liberalization of a trading in shares of Gazprom

At the end of 2005 - the beginning of 2006 the Government of the Russian Federation lifted limits for a trading in shares of Gazprom which could bargain only on the Moscow, Ekaterinburg, Siberian stock exchanges and St. Petersburg stock exchange before (enters into group of RTS).

On January 23, 2006 a trading in shares of Gazprom began also on MICEX SE. Liberalization of a trading in shares of Gazprom brought to MICEX the additional essential trading volumes. After that the lead of MICEX from RTS in the field of the stock trading became overwhelming.

2004: Purchase of depositary

In October, 2004 the group of MICEX managed to take the blocking stake of Depository clearing company (DCC) Ltd which was settlement depositary of her direct competitor - RTS Stock Exchange. The transaction was performed by settlement depositary of MICEX - the National Depository Center (NDC) which acquired at Rosbank at first 28% of shares DKK, and then brought the packet to 36.96% of stocks. Analysts suspected that banks sold the packets in DKK under pressure of the Central Bank, being one of owners of NDTs and founders of MICEX though participants of transactions denied it. At the same time was considered that entry of NDTs into the capital of DKK - the first step on the way of creation in Russia of uniform depositary. However, the decision on creation of uniform depositary was not made.

2002-2003: Conflict with the regulator

  • At the end of 2002 - the beginning of 2003 the exchange the regulator - Federal Commission for the Securities Market (Federal Commission on Securities) in connection with entry into force since January 1, 2003 made a complaint to new edition of the law "About Security Market". According to this law, as the organizer bidding only the open joint stock company in which each shareholder owns no more than 20% of stocks can speak at the stock market. For reduction in compliance of structure of the exchange with the legislation, MICEX Ltd selected the child exchange MICEX Stock Exchange Ltd from the structure - and obtained on it the license of stock exchange.

Besides, the head of Federal Commission on Securities of that time Igor Kostikov accused the exchange and one of market makers - Alor company - of price manipulation on the forward market. As a result of MICEX it was not succeeded to start the market of share derivatives at that time.

  • In April, 2003 the founder of the exchange A. Potemkin working at that time as the deputy chairman of board of Rosbank released the president of the exchange A. Zakharov who went to Sberbank from a duty.

2001: Internet trading boom

  • During the period from 2001 to 2003 in the Russian market there came the change: sharply the interest of the Russian private investors in the stock market grew that made extremely profitable biddings with payments in rubles, the role of Internet trading increased and interest in exchange trade in bonds appeared. MICEX managed to use new trends and began to delay on itself the trading volumes from the competing RTS exchange which initially was guided by the western investor and conducted a trading in shares with payments in dollars.
  • The stock market of MICEX showed the explosive growth of turnovers on securities. "Practically MICEX created perfect contrast to the classical market of RTS: payments in rubles, predeposition, anonymous biddings, clearing", - Ivan Tyryshkin who in 1998-2001 was the head of NAUFOR, and in 2001-2003 - the head of RTS told the Interfax-AFI agency.

According to him, MICEX entered the spot market in 1997 when nobody wanted to make the transaction in unstable ruble. "Then all doubted concerning success of this project. Now it is obvious that RTS underestimated the opponent. When the country began to recover from crisis, and the ruble began to be stabilized, the market of MICEX showed the explosive growth of turnovers. By this time RTS had no technological capabilities any more to provide to the market a similar product", - Tyryshkin told. In the classical market of RTS at that time about only 15-20 transactions for $50-100 million consisted every day.

"There was a situation when through RTS the foreign investor came, and the local investor traded on MICEX as the banks trading on MICEX provided to this roar liquidity through ample opportunities of marginal crediting", - V. Streltsov explained.

1999: Corporate bonds

Since 1999 MICEX was engaged in creation of the market of corporate bonds. Then the exchange began to develop actively technology of remote access to biddings on the Internet (Internet trading).

1998: Crash of state treasury bills

Serious problems at MICEX arose after August crisis of 1998. The Government of the Russian Federation declared on August 17 a default according to the obligations, the auction of state treasury bills held on MICEX was frozen (in the fall of 1998 through the exchange repayment of state treasury bills to individuals was performed). After collapse of the market of a public debt its participants began to transfer urgently the funds to dollars, and because of the sharp growth of currency rate of the USA the Central Bank made the decision and on suspension of foreign exchange auctions (with fixing establishment). As a result business of MICEX was seriously reduced.

In new conditions the exchange which was earlier specializing in foreign exchange auctions and biddings by state papers made the decision on development of share section and began to attract papers of new issuers. The role of quasi-state paper was executed by bonds of Gazprom (the company did not need loans, but issued securities for a market support).

1997: Beginning of a trading in shares of the companies

In March, 1997 on MICEX there took place the first trading in shares of the Russian companies. Since September 22, 1997 the exchange began calculation of the Consolidated stock index of MICEX, later (in 2002) it began to be called the index of MICEX. However in those days the suppressing trade volume actions fell on RTS.

1993: Start of state treasury bills

In 1993 on MICEX there took place the first auction for placement of the state treasury bills (STB), thus the exchange began to acquire the universal status. In the mid-nineties the exchange began to implement and other financial instruments of the stock and forward market - corporate securities and currency futures.

1992: Creation of MICEX Ltd

On January 9, 1992 MICEX Ltd based on the currency platform of the State Bank of the USSR where in April, 1991 the first exchange foreign exchange auctions in the contemporary history of Russia began is founded.

At the beginning the auction on MICEX was held weekly, since April, 1992 once a week, since February 10, 1993, and since June, 1993 - five weekly, i.e. each working day. On MICEX transactions of purchase and sale of U.S. dollars and DM were performed. Banks - members of MICEX at the request of the clients and from own name participated in transactions of the exchange. The Central Bank of the Russian Federation used MICEX for carrying out currency interventions.

From the moment of foundation of MICEX Alexander Zakharov who came to this position from a post of the associate director of the Center of carrying out interbank currency transactions of the State Bank of the USSR was its CEO. Zakharov headed MICEX till April, 2003. At the same time Alexander Potemkin who from 1991 to 1993 worked as the head of department of the international transactions of the Central Bank of the Russian Federation also stood at the origins of creation of the exchange, and before was responsible for interbank currency transactions at the currency exchange of the State Bank of the USSR. During creation of MICEX it was supposed that it will be headed by A. Potemkin, however then he remained to work in the Central Bank.

Notes