By Andrei Skvarsky.
Moscow Exchange has more than trebled the list of companies eligible to trade their shares under the T+2 settlement scheme, an arrangement where payment must be made within two business days of a transaction.
The list went up to 50 from 15 as of Monday as part of a process in which the bourse is phasing out T+0, an arrangement involving immediate payment, the exchange said in a statement.
T+0, which had been the Moscow Exchange’s only settlement scheme before T+2 was launched in March, is due to be completely out of use after September 2.
All sovereign bond (OFZ) issues have been available for T+2 trade since March 25. Parallel trading with T+0 settlement will be allowed for all T+2-eligible securities until August 30, and as from September 2, T+2 will be the only form of settlement for all shares, Russian depositary receipts (RDRs) and OFZs.
The exchange has, in addition, offered new opportunities to securities market participants.
Opportunities available as of July 8 include transaction execution with options for no-unsecured selling and no-unsecured buying, and off-order book trading with central counterparty (CCP) repos.
The exchange is also introducing a new settlement code for repo trades – Y1/Y2. The date of its taking effect will be announced later.
Furthermore, the exchange has changed the size of deductions to the Guarantee Fund from clearing transactions as from July 8.
T+2 sector participants that execute trades on their own or clients’ behalf and those involved in CCP clearing on their own behalf are to pay 5m rubles.
Those executing CCP repo trades on clients’ behalf will be charged 10m rubles.
Participants who have not made a 5m-ruble payment to the Guarantee Fund would, nonetheless, be admitted to T+2 trading but on condition of full prefunding, i.e. no-unsecured selling and no-unsecured buying.
Sorry, comments are closed for this post.