For Russian traders and investors in the field of trading in securities, currency, contracts or precious metals, the main competitive platform in the vastness of the Russian Federation is the Moscow Stock Exchange. It is the largest Russian stock holding and takes place in the twenty largest in the world, and is also among the top ten trading floors in terms of volume.
How was the MICEX created?
Its creation falls on 2011, although the history of the opening of the first exchanges goes back centuries. Back in the 60s, trading in securities was already present at the established Russian sites. In 2011, after the merger of two large exchanges, which represented the largest Russian stock exchange for trading in shares, currency and derivatives, the Moscow Exchange MICEX-RTS was founded. Later, in 2015, she changed her name to PJSC Moscow Exchange.
Technology and Features
Today, the Moscow Stock Exchange is serviced at the T + 2 technology site. The technology was adopted from European experience; as a result, the stock exchange market of the Moscow Exchange has been using this particular trading system for three years now.
Previously, trading was based on the T + 0 technology. The difference was that with the T + 0 system, the transaction should be completed on the day it was completed, and the introduction of the T + 2 technology allowed to reduce the costs of market participants. This increased the market liquidity and the influx of non-residents who are already used to conducting operations on European sites. T + 2 is characterized by partial preliminary deposit of funds and has the ability to make transactions with deferred execution for a period of up to 2 days. The big plus is that in using this technology there is a slight similarity with futures trading, which adds liquidity. Exchange electronic platforms are interested in this.
Basic information
Tasks of the Moscow Exchange:
- currency conversion through bidding;
- determination of the ruble exchange rate in relation to other currencies;
- ensuring the turnover of investment capital in the economy, etc.
The trading schedule is divided into the afternoon session (10: 00-18: 45) and the evening (19: 00-23: 50). During the afternoon session, you can make orders over the phone.
Moscow Currency and Stock Exchange: advantages
The main advantages of the Moscow Exchange are reliability, affordability, low commission fees, the absence of depositary fees, high liquidity, a constant change in the list of contracts, the ability to quickly respond to changes in the dynamics of foreign exchanges using the evening session. Various events are held on the Moscow Exchange, which are aimed at the economic education of residents of the Russian Federation. This includes lectures and conferences involving students. An integral factor is the creation of charitable projects that bring great benefits not only to the population, but also to the country's economy.
The stock market of Russia is still very young and developing. Compared to the US market, the Moscow Stock Exchange is far from perfect. One of the main criteria for a trader is liquidity.
What does it mean?
It all depends on the average daily trading volume of shares. On the Moscow stock exchange, it is 1.1 billion dollars, but compared with, for example, the NYSE, whose volume exceeds 300 billion dollars, this is very small. To equal the volume of the American site, the Russian market needs to work for about a year. We can conclude that the liquidity of US markets exceeds domestic stock electronic platforms.
Country policy, of course, affects stock trading. In the CIS countries and the USA, the stock market is freer, and if politicization is calculated as a percentage, then approximately 10% on the US markets can be given, and all 90% on the Russian markets. This means that the shares of the Moscow Stock Exchange cannot be called valuable, but still ahead. This area of the economy is developing rapidly, so experts do not express any concerns.
Despite its recent existence, the Moscow Stock Exchange has already achieved great success not only in the vastness of Russia, but also in other countries. It occupies not the last place in the top of the largest exchanges in the world in terms of trading volumes and brings great benefits to the country's social and economic development.