Market Profile

The MICEX government-backed securities market, or the GKO/OFZ market, was created by the RF Ministry of Finance and the Bank of Russia in 1993 in order to implement the state’s budget and monetary policy.

The government-backed securities market (hereinafter referred to as ”the GSM market”) is one of the most important segments of the Russian financial market and performs the following functions:

• enabling the Government to effectively manage its finances;
• providing the Bank of Russia with tools for implementing effective monetary policy, regulating the level of liquidity, and maintaining stable interest rates;
• providing a reference level of risk-free interest rates in Russia;
• providing all economic entities with highly reliable securities.

The GSM market is one of the most advanced segments of the Russian financial market, using a unique nation-wide interregional infrastructure. Its main features are:

• reliability;
• nation-wide coverage;
• integrated services using advanced information technology;
• technology that complies with the latest international standards.

The REPO market has been part of MICEX since 2002; it includes direct REPOs with the Bank of Russia, reverse REPOs with the Bank of Russia (modified REPOs) and inter-dealer REPOs.