By Andrei Skvarsky.
Citigroup, Credit Suisse, Merrill Lynch and Morgan Stanley are going to begin to offer their clients direct market access (DMA) to trade in Russian securities on Moscow Exchange this month.
Two other major global banks are expected to follow suit later this year, Russia’s largest trading platform for equities, bonds, derivatives and currencies said in a statement.
The DMA offers are a reaction the bourse’s completed transition to the T+2 settlement scheme and the creation of a national centralised clearing system and a central securities depository, according to the statement.
T+2 is a globally accepted arrangement where the buyer of a security is to pay for it and take ownership of it within two business days after the transaction date. On Moscow Exchange, it replaces the T0 system, where all three operations were to take place the same day.
International investors will be able to trade equities, while collateral can be posted in Russian rubles, securities, US dollars and euros, the exchange said.
“Our migration to T+2 marks a new phase of Moscow’s integration into the group of the main global financial centres,” said Moscow Exchange deputy CEO Andrey Shemetov.
“Investors from around the world can now trade Russian assets directly in a more convenient way. As we look ahead our key objectives are to further modernise our infrastructure, broaden our product offering and increase liquidity across our markets,” he said.
Moscow Exchange was formed in December 2011 through a merger of Russia’s two main bourses, Micex and RTS, and completed a highly successful IPO by mid-February.
The exchange manages the Central Securities Depository and the country’s largest clearing service provider, the National Clearing Centre.
The bourse has 703 issuers, including many of Russia’s largest companies, listed on its securities trading platform.
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