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Market History
1999
January
Most important event of the year was restoration of GKO-OFZ market from the point of view of sustainability of its liquidity and macroeconomic effect. Although quantitative turnover and value of GScs market was considerably lower as compared with 1998 and with 1997 in particular, it remained the largest segment of the Russian stock market. Due to restructuring, new type of securities — federal bonds with fixed income (OFZ-FD) — were introduced to the market.
March
The new version of Agreement "On Executing the Function of Trading System" was concluded between MICEX and Bank of Russia. It stipulated legal status of the Trading System, legal basis of relations between Trading System and Bank of Russia, market players and infrastructural agencies, as well as Trading System place as a core element of GScs market infrastructure, taking into consideration the changes of GScs market.
May
Operations for income repayment to privileges categories of investors were completed due to novation of GKO-OFZ. Turnover of such repayments exceeded 6.5 billion RUR.
June
New market transactions with special accounts for non-residents of C type in authorized banks were launched. Action plan for further improvement of trading technologies, clearing and settlement of accounts, as well as for increase of GScs market liquidity was fulfilled in collaboration with Bank of Russia.
One of the crucial events in 1999 was MICEX licensing as a clearing agency.
August
MICEX received the License, issued by Federal Agency of Government Communications and Information, for exchange trading data protection.
October
Technology of interdealer REPO operations was realized in MICEX Trading System, which guaranteed execution of the second part of closed-out deals, risk minimization for market players, and risk minimization for Bank of Russia as the final underwriter for execution of the second part of deals. However due to imperfection of tax legislation and accounting rules for such transaction, interdealer REPO deals were never concluded.
Year Outcome: total turnover of the market dropped to 258.15 billion RUR. Auction turnover accounted for 3.73 billion RUR, secondary trading turnover accounted for 106.30 billion RUR.
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Government Securities & Money Market
