Moscow Stock Exchange: characteristics of the trading platform

For Russian traders and investors, trading in securities, currency, contracts or precious metals, the main competitive platform in the Russian Federation is the Moscow Stock Exchange. It is the largest Russian exchange holding company and takes the place in the world's twenty largest, and also among the top ten in terms of trading platforms.

How was the MICEX created?

Its creation falls on 2011, although the history of the opening of the first stock exchanges takes centuries ago. As early as the 1960s, trading in securities was already present at the established Russian sites. In 2011, after the merger of two major exchanges, which represented the largest Russian stock exchange for the trading of shares, currency and derivatives, OJSC MICEX-RTS Moscow Exchange was founded. Later, in 2015, it changed its name to PJSC "Moscow Stock Exchange".

Technologies and features

Today, the stock exchange in Moscow is serviced on the technological platform T + 2. The technology was adopted from the European experience, as a result, it was this trading system that has been used in the stock market of the Moscow stock exchange for three years already.

Previously, trades were conducted on the basis of technology T + 0. The difference was that with the T + 0 system, the transaction should be completed on the day it was committed, and the introduction of T + 2 technology allowed to reduce the costs of market participants. This increased the liquidity of the market and the influx of non-residents, who are already accustomed to conducting operations on European sites. T + 2 is characterized by a partial advance deposit of funds and has the ability to make transactions with deferred execution for up to 2 days. A big plus is that in using this technology there is a slight similarity with the trading in futures, which adds liquidity. Exchange electronic platforms are interested in this.

Basic information

Tasks of the Moscow Stock Exchange:

• Currency conversion by means of bidding;
• Determination of the ruble exchange rate in relation to other currencies;
• Maintenance of a turn of the investment capital in economy, etc.

The trading schedule is divided into a daily session (10: 00-18: 45) and an evening session (19: 00-23: 50). During the afternoon session, you can make orders in the phone mode.

Moscow Currency and Stock Exchange: advantages

The main advantages of the Moscow stock exchange are reliability, accessibility, low commission fees, no depository fees, high liquidity, a constant change in the list of contracts, the ability to respond quickly to changes in the dynamics of foreign exchanges through the evening session. At the Moscow Stock Exchange, various events are held that are aimed at the economic education of the inhabitants of the Russian Federation. This includes lectures and conferences with the involvement of students. An integral factor is the creation of charitable projects, which bring great benefits not only to the population, but also to the country's economy.

The Russian stock market is still very young and developing. If we compare it with the market in the United States, 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, but compared to, for example, the NYSE, which exceeds $ 300 billion, this is very small. To equate to the volume of the American site, the Russian market needs to work for about a year. It can be concluded that the liquidity of the US markets surpasses the domestic stock electronic platforms.

The policy of the country, of course, affects the exchange trades. In the countries of the CIS and the US, the stock market is freer, and if politicized to be calculated as a percentage, then approximately 10% can be given to the US markets, and to the Russian market - all 90%. This means that the shares of the Moscow Stock Exchange can not be called valuable, but it is still ahead. This sphere of the economy is developing rapidly, so specialists do not express any concerns.

Despite its recent existence, the Moscow Stock Exchange has already made great strides not only in the vastness of Russia, but also in other countries. It occupies not the last place in the top of the world's largest exchanges in terms of trading volume and brings great benefits to the social and economic development of the country.