In 1998, the Stock Market Section was one of the MICEX fastest growing markets. It formed the national system of exchange trading in corporate and sub-federal (regional) securities.

The Moscow Interbank Currency Exchange won the EU bid for the implementation of the TASIS project "Consulting Services in the Area of Investments and the Capital Market" in Russia. The main goal of the project is the development of the infrastructure of the Russian stock market. This project will be implemented over 2 years in cooperation with the Vienna Exchange and investment and consulting company "Raiffeisen Investment AG" (Austria).

In the framework of the program of creation of the inter-regional trading and depository system for securities, the MICEX and regional exchanges signed the new version of agreements under which regional currency and currency-and-stock exchanges continued to act as the MICEX representatives in the securities market and technological centers of access to the MICEX Trading System for regional professional market participants.

Before 1 June 1998, the depository of ONEXIMBANK had provided depository services for the participants of the MICEX Stock Market Section. In compliance with the Decree of the Federal Commission for the Securities Market of 20 January 1998 "On the adoption, jointly with the Central Bank of the Russian Federation, of the Statute of peculiarities and restrictions of the combination of broker and dealer activities and activities connected with trust management of securities with operations connected with centralized clearing, depository and settlement service", on 1 June 1998, ONEXIMBANK passed the functions of settlement depository over to the National Depository Center.

The market of corporate stocks and sub-federal (regional) bonds was growing rapidly. The total number of issuers (including entities of the RF) reached about 100, including the bonds of Moscow.

The MICEX began to attract private investors' resources to the stock market. Private investors were enabled to participate in exchange stock trading through Moscow Stock Center.

In August, the situation changed dramatically. Russia entered the period of financial and banking crisis. In the official statement of 17.08.98, the RF Government and the Bank of Russia announced that they were changing the limits of the "currency corridor", suspending trading in GKO/OFZ and their restructuring into new government securities and imposing temporary moratorium on hard-currency payments to nonresidents.

The MICEX suspended trading in GKO/OFZ (in compliance with the Decree of the Government and the RF CB) and derivative instruments due to force majeure circumstances. The MICEX launched trading in the bonds of the Bank of Russia. The turnover of trading in corporate and sub-federal (regional) securities decreased but the MICEX managed to preserve the liquid market of stocks of leading issuers.

The financial crisis of 1998 had a disastrous effect on the Russian stock market. After 17 August 1998, the average daily turnover decreased several times. The MICEX summary stock index (the MICEX SSI) dropped to its historically lowest level of 20,92 units.

At the end of 1998, TASIS launched its INVAS project. Its main goal is the development of the infrastructure of the Russian stock market. The MICEX was selected as the main coordinator of the project because of its key role in the Russian stock market as the largest infrastructure organization. The MICEX has its network of regional branches. It possesses top-level technological facilities and is noted for its extensive experience, while its employees demonstrate great professional skill. In the framework of the project, the MICEX works jointly with foreign experts to determine the areas, in which support can be provided to the Russian stock market, prepare concrete projects and select organizations that can provide technical assistance. INVAS project will be implemented over 2 years. The MICEX's main foreign partners are the Vienna Exchange and "Raiffeisen Investment AG" (Austria).

INVAS project was launched when the Russian stock market was going through difficult times. In the situation marked by the collapse of all segments of the Russian stock market and stagnating market institutions, the MICEX, jointly with its foreign partners, started the strategic program of providing assistance to all participants of the market — issuers, banks and investors. The implementation of INVAS project enabled to avoid international isolation, which was threatening the Russian stock market, and preserve and maintain relations with European stock market participants.