Market Makers

To develop liquidity in the securities market, the Rules of Admission to Trading on the MICEX Stock Exchange Closed Joint Stock Company (hereinafter referred to as “The Rules of Admission”) provide Traders with the opportunity to receive official Market Maker status with respect to a specific security admitted for trading on the ZAO MICEX Stock Exchange.

Market Makers

In order to be granted official Market Maker status, a Trader must execute the following agreements with the ZAO MICEX Stock Exchange and ZAO MICEX:

• an Agreement to Perform Market Maker Functions*, the form for which is available in Supplement No.10 to the Rules of Admission;
• a Supplementary Agreement to the Contract on Providing Integrated Technological Services, made between ZAO MICEX and the ZAO MICEX Stock Exchange Trader to whom the Market Maker status is granted (only for bonds and for shares included on the ZAO MICEX Stock Exchange Quote List “B” ).

According to the Rules of Securities Trading on the MICEX Stock Exchange, the parameters of a Market Maker’s obligations are determined by the ZAO MICEX Stock Exchange Directorate for each security, taking into account proposals from Traders seeking to receive Market Maker status with respect to that security.

The Parameters of a Market Maker’s Obligations

Market Maker’s Obligations

Traders who have executed the appropriate Agreement are granted official Market Maker status at the ZAO MICEX Stock Exchange.

A Market Maker enters the Trading System in Main Trading Mode on a continuous basis (with the exception of quote breaks) during the trading session either on his own behalf and at his own expense or on his own behalf and at the expense of his clients and executes orders on the security determined in the Agreement at prices in which the actual spread does not exceed the maximum value of the spread while maintaining an aggregate volume of buy / sell orders no less than the minimum permissible volume (MPV).

If the MPV is not achieved, either due to the absence of orders or if the actual spread exceeds the established maximum value, the quote break (QB) time begins. During the trading day, the Market Maker does not have the right to enter or maintain his orders to buy / sell securities for an amount of time not exceeding the total QB time.

The aggregate duration of the QB shall not exceed 120 minutes per day. Each additional security quote that is supported by the Market Maker adds 20 minutes to the QB, up to a limit of 180 minutes.

The Rules of Trading also establish that, for a number of securities, a maximum volume of transactions concluded with that security during one trading day in Main Trading Mode within the framework of the Market Maker’s obligations may be established, at which point the Market Maker shall only have the right to maintain one-sided buy or sell quotes or he will be relieved of his duties.

In cases where the Market Maker only has the right to enter orders to conclude buy or sell transactions for a certain security, in order to comply with the Market Maker’s obligations, the volume of those orders must be no less than the MPV established for that security and the deviation from the security’s average weighted price, expressed as a percentage, must not exceed one half of the maximum value of the spread established for the security.

Benefits Granted to Market Makers

Information Disclosure

Information on Traders performing Market Maker duties indicating the securities with which each of them performs their duties, the number of each Market Maker’s obligations (including those regarding spread), the amount of remuneration received from the trade organizer, and the benefits granted by the Stock Exchange to each Market Maker for performing his duties shall be published by the Stock Exchange on its website, in its official press release, and also may be used in the preparation of issue-related materials for print media and information agencies.

In addition, information on the Market Maker’s fulfillment of his obligations may be provided to the issuer of bonds in both hard copy and in electronic form with written consent from the Market Maker. This information may be provided in the amount and frequency desired by the issuer of bonds.

Contact Information

• for questions regarding granting Market Maker status (Traders Department): +7 (495) 363–32-32;
• for questions regarding approval of the parameters of a Market Maker’s obligations: 705‐96‐58.