Review of the MICEX Stock Exchange

Within the MICEX Group, there is the CJSC “MICEX Stock Exchange”, which is the leading Russian stock area, its share in the Russian exchange market of shares makes about 98%, and in terms of the off-exchange segment — 67%. The MICEX Stock Exchange is the largest stock exchange in CIS countries, countries of Eastern and Central Europe: it is in the top 30 list of leading stock exchanges of the world, and its share in the exchange trading turnover in Russian assets in terms of depositary receipts on shares of Russian issuers is approximately 63%. As a result the MICEX Stock Exchange is the centre of liquidity formation on Russian securities, being the basic stock area for international investments into shares and bonds of Russian companies.

In 2008 the total amount of trading at the MICEX Stock Exchange grew for 11%, making RUR 48 trillion, including the turnover on shares – RUR 34 trillion (including REPO bargains). On the daily basis the trading in securities of about 780 Russian issuers is made at the MICEX Stock Exchange, including in shares of more than 230 companies, among them of the largest issuers – OJSC “Gazprom”, OJSC “Rostelecom”, OJSC “Sberbank of Russia”, OJSC “Lucoil”, OJSC “NC “Rosneft” and others with aggregate capitalization of about RUR 10 trillion (approximately USD 300 billion). The trading participants of the MICEX Stock Exchange include more than 670 organizations — professional participants of the securities market, which clients are about 600 000 investors – legal entities and individuals. Trading at the exchange is organized in the electronic form on the base of the modern trading system, which has connection to regional trading areas and remote terminals.

Unique possibilities are granted for organization of offering and floatation of bonds at the MICEX Stock Exchange. In 2008 the exchange offered 130 issues of corporate bonds for the total amount of RUR 515 billion and 9 issues of regional bonds for RUR 10 billion, and also IPO of exchange bonds (15 issues for the sum of RUR 17 billion) were made at the exchange. The bonds trading volume in 2008 grew for 17% and made RUR 15 trillion. Nowadays the exchange has trading in 750 issues of bonds of more than 500 Russian issuers. Also trading in units of 306 unit investment funds are conducted at the MICEX Stock Exchange, stimulating the development of institutes of collective investment.

The MICEX Stock Exchange renders a wide range of services to issuers, including entry of exiting shares into the market, listing and IPO. The exchange still has the effective Sector of Innovative and Developing Companies operating, which is built on purpose for small and meddle size companies. In 2008 the exchange launched the new sector MICEX Discovery within which shares of 40 issuers of the second and third echelons were included into the list of securities, traded at the exchange. The peculiarity of the coming to the exchange is the allowance for trading without the application from the issuer himself with preservation of information disclosure level, which is stipulated by the Russian law on securities market.

Key indicator of the Russian stock market is the MICEX Index, which is calculated from 1997 and which includes 30 of most liquid shares of largest and dynamically developing Russian issuers, representing the basic branches of economy. The MICEX Stock Exchange in 2008 within the bounds of development of stock indices family set to calculation of the new index of financial banking branch companies: MICEX FNL, which accomplished the group of branch indices (MICEX O&G, MICEX PWR, MICEX TLC, MICEX M&M, MICEX MNF). Bonds market’s indicators are the index of municipal bonds MICEX MBI and the index of corporate bonds MICEX CBI.

Now the Stock Exchange, as a strategic infrastructural institute, tends to take the worthy place in practical implementation of the global aim as to develop competitive financial market of Russia and form international financial market.