What is the RTS index?

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

There are various indices in the stock market. Among them are MICEX, RTS, S&P, Dow Jones and others. This article focuses on one of the leading indicators of securities trading in Russia, such as the RTS index.

Stock market indicator

The stock index is an indicator of the stock market. Thanks to it, you can view the average value of changing stock prices. The necessity and significance of stock indices lies in a real assessment of the state and behavior of the corresponding sector of the financial market.

In the present period of time, the importance of the securities market is extremely increasing for the formation of the economy of developed countries. This makes it necessary to pay due attention to the consideration and analysis of the state of this market, as well as to apply special relative and absolute indicators, including stock indices.

The most popular indices in Russia

Today, there are a large number of both foreign and Russian indices. Historically, the MICEX has become the most famous and widespread on the territory of the Russian Federation:

• M - Moscow.
• M -interbank.
• B - currency.
• B - exchange.

And RTS:

• Р - Russian.
• T - trading.
• С - system.

These two stock exchanges are the largest in Russia. They can trade a variety of financial instruments: bonds, futures, stocks and many others.

The largest exchange

RTS Stock Exchange is an open joint stock company. The exchange organizes free trading in shares and financial derivatives of market participants at a high technical level. Its main tasks are to form and further develop an economically successful concept for securities prices. The stock exchange pays great attention to the promotion of the Russian economy to the world level. It is one of the most significant stock exchanges in Russia and seriously competes with the leading domestic stock exchange - MICEX.

Open Joint Stock Company RTS Stock Exchange was founded in 2003. In 2006, it became the center of the Russian Trading System Group on the basis of a non-profit partnership.

The exchange contains a number of special platforms for trading different types of securities: RTS Standard, RTS Classica, FORTS, T+O, RTS Global, RTS Start.

Detailed characteristics of the index

RTS Index is one of the main indicators of securities trading in the Russian Federation. It has been in existence since 1995. In the beginning, his calculation covered 100 points. To calculate the RTS index,you need to take as a basis the prices of 50 liquid shares of the most capitalized companies located in Russia. In addition to the well-known indicator, there is RTS-2. It includes, so to speak, "second tier" shares. These are all kinds of sectoral and technical indices.

The RTS Index shows in relative units the total market capitalization of securities of certain companies from among issuers.

The index is calculated regularly, every 15 seconds based on the results of trading on the stock exchange. This means that its real-time value is constantly changing.

Quarterly (four times a year) the composition of the index is reviewed. Some shares are removed from the calculation base, adding others. The share of any one share, which is included in its structure, cannot be more than 15 percent. It must be said that the prices of shares included in the index under consideration, unlike the Moscow Interbank Currency Exchange, are indicated in US dollars.

Thus, one of the leading and competitive stock exchanges on the territory of the Russian Federation is rightfully considered the "Russian Trading System". The RTS to some extent reflects the structure of the Russian economy.