Main Russian exchanges

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

In our time, many transactions are carried out with the help of all kinds of auctions held on specially designated sites. Russian stock exchanges are also among them and still remain something unknown and incomprehensible for the average citizen of the country. This is largely due to the fact that the activities of such organizations on the territory of the state were under the strictest ban for most of the twentieth century. But today you should have at least a basic understanding of the functioning of these most powerful economic institutions, since this will allow you to better navigate the news of the economy of the state and the world, and if you wish, will provide an excellent opportunity to earn some money.

Why the stock exchanges of the Russian Federation were created

Let's start with the fact that Russian stock exchanges are non-commercial organizations that exist to create all the necessary conditions conducive to the circulation of securities. At the same time, their activities are quite strictly regulated by both domestic and international legislation.

Each Russian stock exchange performs the following main functions:

• Maintaining and organizing the flow of securities sales.
• Providing comprehensive information to all interested parties about putting up for sale bonds, shares, etc.
• Guaranteed access to all bidders equal access directly to the bidding process.
• Determining and voicing the market price of all securities that are in the trading field.
• Guaranteed execution of concluded transactions, implementation of arbitration if necessary.
• Support at a high level of professionalism of all persons involved in the auction.

The current market situation

Today, the Russian stock market is still actively developing and forming. However, the major exchanges of the Russian Federation still demonstrate a high level of their work, and taking part in their activities is not a bit more difficult than on other similar global stock exchanges.

According to specialized experts, there are about eleven stock exchanges in Russia today. But there are only five really worthy and promising ones. These include:

• Moscow Interbank Currency Exchange.
• Russian Trade Exchange.
• St. Petersburg.
• St. Petersburg Currency Exchange.
• Siberian Interbank Currency Exchange.

The largest foreign exchange organization

The most authoritative Russian currency exchange is the Moscow one. It existed from 1992 to 2011 until it merged with RTS.

From the very beginning, this structure as its main specialization hadcurrency auctions, and later also found a place on the stock market, where Russian issuers traded, the maximum capitalization of which at some points was over 500 billion dollars.

The Moscow system at the time of its operation serves six markets, namely: derivatives, stock, commodity, over-the-counter, currency, cash.

At the same time, the stock market of the exchange is further divided into three more segments:

• Main market.
• Standart.
• Classika.

The main market is exactly the segment that accounts for about 80% of all stock trading and over 99% of bond trading. This sector, in fact, is the real center for the formation of liquidity for Russian securities, and is also considered the leading trading platform, which attracts foreign investment in shares of leading domestic companies.

The main Russian stock exchange also has a very active foreign exchange market with access to trading in the United States dollar, Ukrainian hryvnia, euro, Belarusian ruble, Kazakh tenge, Chinese yuan, currency swaps and a dual currency basket.

It is noteworthy that this exchange of Russian companies has become the place where many Russian commercial structures that previously worked on foreign trading floors are included. For example, in March 2017, the largest builder in Moscow, the PIK group, decided to terminate its membership on the London Stock Exchange and becomeMICEX-RTS trading participant. The company's management explained this decision by the fact that due to this, the liquidity of their shares will be increased.

According to Tom O'Brien, head of international sales at the Moscow Exchange, the London trading floor is inferior to the Russian one because it has exclusively foreign money, while the capital of local and foreign companies is concentrated in Moscow.

Petersburg giant

Considering the Russian exchanges, it is necessary to pay special attention to the St. Petersburg site. Here they trade in various commodity futures and, one might say, form Russian prices for soybeans, corn, wheat, and diesel fuel. Compared to the St. Petersburg Exchange, all other similar Russian exchanges have almost zero liquidity, but still continue to work.

Main Exchange of Siberia

The state registration of the Siberian Interbank Currency Exchange took place on September 15, 1992. Its founders were 32 commercial banks and 17 cities of the region. The trading platform fully accompanies the transactions made on it, starting from the submission of applications and ending with the direct settlement.

The Siberian Russian Trading Exchange became famous in the country for having managed to create a universal online trading system called QUIK on the basis of its subsidiary ARQA Technologies.

In addition, a distinctive feature of the described exchange is the presence of its remote outlets located in Omsk, Barnaul andKrasnoyarsk. On these sites, forward contracts for the supply of agricultural products of the future harvest are being traded.

Starting from 2007, the main focus of the exchange has become the organization of trading in foreign currencies. Already in the first year, the volume of transactions in currencies amounted to almost 3 billion rubles.

Representative of the Far East

In 1995, Russian exchanges were replenished in the form of the Asia-Pacific Interbank Currency Exchange. Already in 1997, she became a representative of the National Depository Center, and in 2006 she became part of the MICEX Stock Exchange.

Today, the Far East Exchange provides settlement services to over 50 banking institutions and other financial institutions located in the region.

Conclusion

The history of the creation of Russian stock exchanges dates back to the time of Peter the Great. More than three hundred years have passed, today exchange trading in Russia is held at the highest level with the involvement of foreign capital. We hope that in the future the dynamics of the development of exchange trading in the Russian Federation will be positive and able to significantly increase the country's authority in the international arena.