Monthly Issue 7/2012 July 2012 YOUR GUIDE TO THE RUSSIAN STOCK AND DERIVATIVES MARKET International Projects In this Issue: MICEX–RTS announced the launch of trading in futures Valuable information for your business including: on BRICS Indices • The latest news from the With the launch of futures on (Johannesburg Stock Exchange) Russian market BRICS benchmark equity indices from South Africa. on June 6, 2012, all Russian The first stage of the BRICS • Market data for June 2012 investors, for the first time, got exchanges’ cooperation is cross- • MICEX–RTS International an opportunity for easy exposure listing of benchmark equity index projects to these fast-growing markets. derivatives on all the participating • Professional opinion of market This became possible thanks trading venues. As a result, all specialists to the joint efforts of the BRICS MICEX–RTS clients have been exchanges alliance that was provided access to the following formed on 12 October 2011. financial instruments: This is a unique project that opens The initiative brings together • futures contract up new opportunities for economic the BM&FBOVESPA from Brazil, on the BOVESPA Index; cooperation in the BRICS region. MICEX–RTS Exchange from • futures contract The initiative provides more investors Russia, the BSE Ltd (formerly on the Sensex Index; with an easy access to the dynamic known as Bombay Stock • futures contract BRICS economies which will facilitate Exchange) from India, Hong Kong on the Hang Seng Index; liquidity growth in these markets Exchanges and Clearing Limited • futures contract on the and considerably strengthen the (HKEx), and the JSE Limited FTSE/JSE Top40 Index international position of the BRICS alliance in the global economy. At the second stage of the project members of the alliance plan to jointly develop a single index tracking performance of the BRICS markets and create a futures on this indicator. The third stage may include further cooperation in joint products design and new services development. “The exchanges alliance is a true- to-life reflection of the growing economic power of the BRICS countries. These economies account for over 50% of the global GDP increase. Without any doubts, the BRICS exchanges alliance has Continues on Page 2 NEWS IN BRIEF... CREDIT SUISSE: functioning in National Settlement Depository New provisions of the Moscow Russia’s evolving derivatives market to offer the opportunity to Exchange Rules for listing to Read the interview with Anis deposit securities as collateral take effect AKL, Managing Director, CREDIT For more information please For more information please SUISSE, Equity Derivatives Trading, visit the website visit the website on page 17 Moscow Exchange Group | Tel +7 (495) 363 32 32 | E-mail: [email protected] 1 Continues from Page 1 a great future,” comments Vadim advantages of the Russian indicators will enable both Russian Lukov, Ambassador-at-Large of the securities market,” says Ruben investors and our international Russian Ministry of Foreign Affairs, Aganbegyan, President, at MICEX– partners to extend their investment Russia’s sous-sherpa in G8, Russian RTS. “The underlying indices of the opportunities in the global financial Ministry of Foreign Affairs Coordinator newly launch futures contracts are markets.” for G20 and BRIC Affairs. well established benchmarks tracking During the first hour of trading market “Today marks a milestone in development of BRICS markets, and participants executed 15 trades in the development of competitive the availability of derivatives on these newly launched contracts. Inside the Market Moscow Exchange launches options on the EUR/RUB futures On June 29, 2012 the derivatives RUB FX and EUR/USD FX options. «We expect that the options will arm of Moscow Exchange MICEX– Hedging instruments attract more be mainly used by hedgers and RTS will start trading in options on interest during the periods of high companies producing structured the EUR/RUB FX futures contract. market volatility. Trading members products based on currency In accordance with the contract increasingly prefer using options along instruments that for obvious reasons specifications a contract size with futures to hedge their positions have been in demand on the market equals one futures with a value that is confirmed by a consistent recently. These market participants of EUR1,000. The options will be growth of open interest volume on had the numerous appeals to launched with a strike price tick of the options on USD/RUB FX futures implement the instrument», RUB500 and expiration in March, contract. On June 13, 2012 the open said Sergey Kalinin, Head of June, September and December. interest on this instrument reached Derivatives Market Organization and The instrument will be the third FX a record high of USD349.5 million or Development at Moscow Exchange options on FORTS joining the USD/ 363,236 contracts. MICEX–RTS. Corporate News Results of the Annual General Meeting of OJSC MICEX–RTS shareholders On June 20, 2012 the Annual acts as the CEO of the company. participation of Moscow Exchange General Meeting of OJSC MICEX– Alexander Afanasiev, Deputy CEO in the Association of Russian Banks, RTS shareholders took place. 48 at MICEX–RTS, was elected to this approval of related-party transactions shareholders and their representatives post at the AGM. A. Afanasiev was and election of members of the Board owning together 99.27% of the proposed as the company’s CEO by of Directors. company’s voting shares participated the Board of Directors. The following persons were elected in the meeting. The participants of the By the resolution made at the AGM to the Board of Directors of OJSC meeting evaluated the MICEX–RTS’s the new version of the Charter «Moscow Exchange MICEX–RTS»: performance for the year, reviewed will come into force after its state 1. Ruben Aganbegyan financial and economic activity of registration by the tax authority. 2. Nicola Jane Beattie the company, i.e. approved the Ruben Aganbegyan as the President 3. Mikhail Bratanov MICEX–RTS Annual report, financial of the company will focus on 4. Andrey Golikov statements, profit distribution, promoting Exchange’s legislative 5. Martin Paul Graham including payment (declaring) of initiatives, interacting with government 6. Oleg Jelezko dividends for the financial year. agencies, investors, issuers as well 7. Bella Zlatkis The dividends will be paid in cash at as preparing to an IPO. Alexander 8. Nadezhda Ivanova the rate of RUB0.31 per share within Afanasiev, the CEO, will be 9. Anatoly Karachinsky 60 days after the Annual General responsible for business organizational 10. Sergey Lykov Meeting of shareholders takes place. and development arrangements 11. Jacque Der Megredichyan The AGM considered changing the and operation administration of business name of OJSC MICEX–RTS the company. The President and 12. Alexander Perchovsky and approving a new version of the CEO will share the responsibility for 13. Viktor Remsha Charter of Open Joint Stock Company the company’s development and 14. Alexander Sapozhnikov «Moscow Exchange MICEX–RTS». implementation of its Strategy. 15. Vladimir Sokolov The new version of the Charter implies Moreover, the shareholders made 16. Tatiana Fomina separation of power between the resolutions related to determination 17. Sergey Shvetsov President and Chief Executive Officer. of remuneration amounts for 18. Andrey Shemetov The Chairman of the Executive Board independent directors of the company, 19. Kirill Shershun. Moscow Exchange Group | Tel +7 (495) 363 32 32 | E-mail: [email protected] 2 News The Moscow Exchange Currency Market Committee holds a meeting On June 28, 2012 the Moscow It is assumed that during the the additional fee for excess orders Exchange Currency Market evening session the currency pairs on the FX market, change of the Committee held a meeting. By the (USD/RUB, EUR/RUB and EUR/ procedure for managing the Risk end of the meeting the participants USD) with settlement on T+1 as Coverage Fund of the FX market recommended that the Exchange well as forwards and swaps will be in order to bring it into compliance managers introduce the evening traded. with the provisions of the Clearing trading session from 7.00pm to In addition, the Committee Law, and launch of the 9-month 11.50pm MSK on the FX market. members approved introduction of and 1-year FX swaps. 21.06.2012 The Board of Directors of OJSC Moscow Exchange MICEX–RTS held a meeting On June 20, 2012 the new OSJC At the meeting Sergey Shvetsov Deputy Chairman of the Board of Moscow Exchange MICEX–RTS was elected the Chairman of the Directors. Board of Directors held its first Board of Directors. after the AGM meeting. Sergey Lykov was voted the 21.06.2012 Volume of open interest on OFZ basket futures exceeds RUB8.1 billion On June 20, 2012 open interest that is the most urgent need during settlement price of the contract is volume on the Russian Federation circumstances of current markets calculated as an average value of Government bonds (OFZ) futures instability”, said Evgeny Serdyukov, the USDRUB_TOM on the MICEX– contract exceeded RUB8.1 billion, Derivatives Market Managing RTS FX market between 12.00pm a trading record since its launch. Director at OJSC MICEX–RTS. MSK and 12.30pm MSK multiplied The volume on the six-year OFZ 18.06.2012 by 1,000 US dollars and rounded futures amounted to RUB4.4 Settlement price for the USD/RUB off to integer value in accordance billion, the four-year OFZ futures – FX futures to be calculated on the with the rules of mathematical RUB2 billion and two-year OFZ basis of USDRUB_TOM rounding. futures – RUB1.7 billion. In accordance with In addition, a range of the FORTS’s “The growth of open interest on recommendations of the USD/RUB FX futures contracts is the OFZ futures proves that the MICEX–RTS Derivatives Market to be extended in terms of their instrument is in demand on the Committee, new specifications for expiration period.