Trading System
MICEX is a fully electronic high-tech exchange. All of the MICEX markets operate using the state-of-the-art electronic Trading System developed using unified technical and technological solutions.
The MICEX Trading System features:
- simultaneous real-time trading in various instruments of the financial market in compliance with applicable rules;
- support of a wide range of methods and rules of trading (including order-driven market, quote-driven market, opening and closing trading, and various types of auctions);
- real-time monitoring of traders’ current money positions and positions on financial instruments on the client level, subject to the established limits on positions;
- monitoring of multi-level related limits (in the currency market);
- real-time calculation of various indices;
- availability of a wide range of real-time market data on the trading session;
- connectivity with a large number of local and remote users;
- connectivity with information dissemination, position maintenance and risk-management, and preliminary order collection systems.
The following markets operate using the Trading System:
- Currency Market;
- Equity and Bond Market;
- Government-Backed Securities and Money Market (The Bank of Russia’s Market for Deposit and Credit Operations);
- Derivatives Market;
- Commodities Market.
The Trading System supports the following trading methods:
- Order-Driven Market;
- Quote-Driven Market;
- Discrete double auction with momentary price fixing on condition of maximum volume (Opening Trading, Call Auction-Type Trading);
- Discrete double auction at fixed price (Closing Trading);
- Unilateral discrete auction (American, European, mixed);
- Registration of transactions outside of the system.
In addition, the MICEX software and hardware complex, developed using unified technological principles and solutions, includes the MICEX Settlement House’s electronic settlement system (SES) and the National Depositary Center’s head depositary system (SHD). Together with the Trading System, these systems ensure the full execution of various financial instruments: primary placement, secondary trading, calculation of obligations and clearing based on the results of primary placement and secondary trading, settlements on financial instruments and monetary funds in compliance with the “delivery vs. payment” principle, depositary service, payment of coupon yields, and redemption.
The MICEX Trading System software was developed by the Australian company Financial Software Development Company Ltd. (now known as CompuShare Ltd.). The software version used by MICEX has been specifically tailored to the conditions of the Russian market and the requirements of Russian law in accordance with the requirements and specifications outlined by MICEX specialists during the initial stage of the project implementation as well as in its further development.
The complexity of the project and the use of diverse software and hardware solutions required the involvement of a highly qualified system integrator. This role was filled by the Swedish company CMA Small Systems AB, a MICEX partner since 1991. CMA Small Systems AB has extensive experience implementing systems of this scale in Russia.
The Trading System is based on a 3-tier client/server, with information from the trading day fully processed in the main memory and stored permanently in the database. The central element of the system uses highly effective UNIX-servers from Hewlett-Packard. The system’s client interface is designed for PCs with various versions of Windows OS.
The Trading System’s data transmission network is a closed corporate network that uses virtual networks from telecom service providers, covering the entire territory of Russia. The network is based on Cisco Systems technologies. There are seven access points based on regional currency exchanges located in Russia’s largest financial centers. The system includes more than 2,000 workstations.
The Trading System’s reliability is ensured through the use of state-of-the-art fault-proof technology. Specifically, the MICEX SHC has two separate computing centers (one main and one reserve), allowing automatic backup and dynamic balancing of computing and telecommunication resources. The Trading System’s safety is ensured through the use of special software, technical, technological, organizational, and physical protection measures.
