By Andrei Skvarsky.
Moscow Exchange, the company managing Russia’s main securities, money and precious metals exchange, has expressed satisfaction with its own corporate performance last year and with the volumes of trade it hosted in 2016.
Sales at Moscow Exchange facilities grew by 24 per cent and the capitalisation of its equity market swelled by 31 per cent in 2016, according to an annual report posted on its website.
Trade increased in volume last year on almost all the markets of the bourse, which trades in equities, bonds, derivatives, currencies, money market instruments, gold and silver.
This generated a “record” fee and commission income for Moscow Exchange, “the core source of income for an exchange”, the bourse’s chief executive, Alexander Afanasiev, told an annual meeting of Moscow Exchange shareholders on April 27.
The company’s fee and commission income for 2016 reached 19.80bn roubles ($323m at the end-of-year average market exchange rate), which was 11.3 per cent up on 2015.
It posted a net profit that was lower than that for 2015 in terms of roubles – 25.18bn versus 27.85bn – but higher in terms of US dollars – $420m versus $379m (using end-of-year average market exchange rates for the two years).
Russian companies raised more than 2.5 trillion roubles (over $41bn) by selling shares and bonds on the Moscow Exchange platform in 2016, Afanasiev said.
The shareholders’ meeting voted to allocate 17.5bn roubles ($307m) or 69.4 per cent of Moscow Exchange’s 2016 net profit as calculated on the basis of international financial reporting standards (IFRS) for the payment of dividends, which were set at 7.68 roubles ($0.13) per share.
Moscow Exchange has nearly 20,000 individual and 600 corporate shareholders.
It runs a school that last year carried out more than 250 workshops to train more than 10,000 individual investors to manage their investment portfolios.