Nowadays, a lot of transactions are carried out with the help of all kinds of trades conducted at specially designated sites. Russian exchanges are also among them and still remain for the average citizen of the country something unknown and incomprehensible. This is largely due to the fact that the activities of such organizations in the state were under the strictest ban for most of the twentieth century. But today one should have at least a basic understanding of the functioning of these powerful economic institutions, as this will help to better navigate the news of the economy of the state and the world, and if desired, will provide an excellent opportunity to earn some money.
Why are the stock exchanges of the Russian Federation created?
To begin with, Russian stock exchanges are non-profit organizations that exist to create all the necessary conditions conducive to the circulation of securities. Moreover, their activities are rather tightly regulated by both domestic and international legislation.
Each Russian stock exchange performs the following main functions:
- Maintaining and organizing the flow of sales of securities.
- Providing comprehensive information to all interested parties about putting up for sale bonds, shares, etc.
- Guaranteed access to all bidders for equal access directly to the bidding process.
- Determining and voicing the market price of all securities that appear in the trading field.
- Guaranteed execution of transactions, arbitration if necessary.
- Support at a high level of professionalism of all persons involved in the bidding.
The situation in the modern market
Today, the Russian stock market is still actively developing and forming. However, the large exchanges of the Russian Federation still demonstrate a high level of their work, and it is no more difficult to take part in their activities than on other similar world stock exchanges.
According to specialized experts, today in Russia there are about eleven stock exchanges. But there are only five really worthy and promising of them. These include:
- Moscow Interbank Currency Exchange.
- Russian trading exchange.
- "St. Petersburg".
- St. Petersburg Currency Exchange.
- Siberian Interbank Currency Exchange.
The largest currency organization
The most authoritative Russian currency exchange is Moscow. It existed from 1992 to 2011, until it merged with the RTS.
From the very beginning, this structure, as its main specialization, had foreign exchange auctions, and subsequently there was also a place and a stock market on which Russian issuers held trades, the maximum capitalization of which at some moments was over $ 500 billion.
The Moscow system at the time of its operation serves six markets, namely: urgent, stock, commodity, over-the-counter, currency, and money.
At the same time, the stock market of the exchange is further divided into three more segments:
- The main market.
- Standart.
- Classika
The main market is precisely the segment that accounts for about 80% of all trading in stocks and over 99% of bond trading. This sector, in fact, is the real center of liquidity formation for Russian securities, and is also considered the leading trading platform on which foreign investments in shares of leading domestic companies go.
The main Russian stock exchange also has a very active foreign exchange market, which has access to trading in the United States dollar, Ukrainian hryvnia, euro, Belarusian ruble, Kazakh tenge, Chinese yuan, currency swaps and a dual-currency basket.
It is noteworthy that this exchange of Russian companies has become the place where many commercial structures of Russia, which previously worked on foreign trading floors, are included. For example, in March 2017, the largest builder in Moscow - the PIK group - decided to end its membership on the London Exchange and become a bidder to the MICEX-RTS. The management of the company explained this decision by the fact that this will increase the liquidity of their shares.
According to Tom O'Brien, Head of International Sales at Moscow Exchange, the London trading platform is inferior to the Russian one because it has exclusively foreign money, while the capital of local companies and foreign companies has concentrated in Moscow.
Petersburg giant
When considering Russian exchanges, it is necessary to pay special attention to the St. Petersburg site. A variety of commodity futures are traded here and, one might say, form Russian prices for soybeans, corn, wheat, diesel fuel. In comparison with the St. Petersburg Exchange, all other similar Russian exchanges have almost zero liquidity, but still continue to work.
Main Exchange of Siberia
State registration of the Siberian Interbank Currency Exchange occurred on September 15, 1992. Its founders were 32 commercial banks and 17 cities of the region. The trading platform fully accompanies the transactions made on it, from the filing of applications to the settlement itself.
The Siberian Russian trading exchange became famous in the country for being able to create a universal Internet trading system called QUIK on the basis of its subsidiary ARQA Technologies.
In addition, a distinctive feature of the described exchange is the presence of its remote outlets located in Omsk, Barnaul and Krasnoyarsk. At these sites, forward contracts are being traded for the supply of agricultural products of the future harvest.
Since 2007, the main focus of the exchange has become the organization of trading in foreign currencies. Already in the first year, the volume of transactions in currencies amounted to almost 3 billion rubles.
Representative of the Far East
In 1995, Russian exchanges received replenishment in the form of the Asia-Pacific Interbank Currency Exchange. Already in 1997, she became a representative of the National Depository Center, and in 2006 became a member of the MICEX Stock Exchange.
Nowadays, the Far Eastern Exchange provides settlement services for more than 50 banking institutions and other financial institutions located in the region.
Conclusion
The history of the creation of Russian exchanges dates back to the time of Peter the Great. More than three hundred years have passed, today the exchange trading in Russia is held at the highest level with the attraction of foreign capital. We hope that in the future the dynamics of the development of exchange trading in the Russian Federation will be positive and able to significantly increase the country's credibility in the international arena.