By Andrei Skvarsky.
Moscow bankers reacted in shock and dismay after the unexpected decision to open Russian stock exchanges Micex and RTS during most of the 10-day national non-working period in early January.
Many market participants had long planned holidays and had booked flights and hotels to foreign destinatations. The two bourses will stay open from the 3rd to the 6th and then on the 9th and 10th of January, the Central Bank announced.
The first ten days of January have been an official non-working time in Russia for several years. However, the two-week bender is a serious anomaly as Moscow tries to transform itself into an international financial centre from the Wild East.
Leonid Slipchenko, banking analyst at UralSib Securities:
“I personally negatively look at that intention as well as my colleagues. From analyst’ view I am sure clients will not need usual analytical support during these days especially as management of trading companies will definitely be on vacations and there will be no news flow at all and activity will be pretty low. In addition research departments have never worked fixed hours and spend at work most of the time and new year time for most of analysts is almost the only opportunity to relax.
“In many companies some traders and sales usually control some operations during these days as Western bourses are open, however activity has always been very low and new working days will not change the situation substantially. In addition many companies will have to work additional hour soon due to time shift abroad and almost no holidays is not the right solution in this case.”
Vladimir Tikhomirov, chief economist at Otkritie Capital:
“Personally, I feel bad because this decision was made at time when many people have paid for their NYE holidays. Professionally, I think this is a right decision, particularly if Russia really wants to become a closer part of the global financial system through developing of its own regional financial centre.”
Louise Gibney, head of Russian equity sales, ING Equty Markets:
“It came as a surprise to market participants to hear the news, but if the exchanges is open, so are we. International clients will be back at their desks after the New Year break, so they will welcome a market being open for trading. There may be compensation in pay or extra holidays, if these remain official holidays inRussia and one has to come to work, this is unclear.”
Slava Rabinovich, chief executive and chief investment officer, Diamond Age Russia Fund:
“I believe that in today’s globalised and integrated world one country or one market cannot ring-fence itself from the outside world and be not only better off, but even remain not worse off, even if for a reason of particular holidays in one particular country. For the sake of integrity, liquidity and price discovery of financial securities I support all ideas related to expanding the time and scope of trading inRussia, and so I feel very positive about it.
Luis Saenz, chief executive, US unit of Otkritie:
“I welcome fully this step forward;Russia’s markets are truly taking global competition seriously. Historically, competitors such as the London Stock Exchange reaped the windfall benefits fromRussia’s 10-day trading halt. Now, international investors can count onRussiato trade during these long holidays – especially during these turbulent times. Bottom line – a significant positive forRussiaand its aspirations in wanting to become a global financial centre.”
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