MICEX Group represented the Russian market last week at Sibos 2008, a major international forum for financial market participants held in Vienna (15-19 Sept.). During the forum, Alexey Rybnikov, the CEO of MICEX Stock Exchange, and Nikolay Egorov, Director of the National Depository Center (NDC), announced plans to hold joint roadshow of the Russian financial markets planned for the world’s largest financial centers.
At Sibos, almost 10,000 conference participants representing financial organizations from all over the world, including almost 200 Russian delegates, discussed topics of current interest including solutions to the current global crisis, the liquidity issue, new technologies, efficiency of processes and safety provisions, and new priorities and tasks for financial infrastructure organizations.
Sessions and plenaries involving Russian company managers were of interest to the international audience. Among the issues discussed at a Special Program for Russia and the CIS Countries were the following: Whether the ruble may become a global reserve currency? How the latest experience and solutions are to be implemented in the Russian and CIS securities markets? Where will the major financial centres be in 2013?
Among the participants were Alexander Potemkin, President, MICEX; Alexey Rybnikov, the CEO, MICEX Stock Exchange; Nikolay Egorov, Director, NDC, and Sergei Sukhinin, Chairman of the Executive Board, MICEX Settlement House.
Mr. Rybnikov, the CEO, MICEX Stock Exchange said: “Currently about a half of the global turnover in Russian securities, ADRs and GDRs is being traded through MICEX Stock Exchange, either in the stock and OTC markets. More than 30% of the turnover in stocks involves foreign investors, as MICEX Stock Exchange is a global center for the liquidity and price formation surrounding Russian stocks. Russian infrastructure supplies efficient and competitive services which we will be promoting as part of the Russian financial system’s development program.”
Mr. Egorov, Director, NDC, Member of the Executive Board and Senior Vice President of MICEX commenting on the Russian market’s transparency, said: “The number of foreign investors in MICEX turnover is growing, and the level of NDC risk conforms with risk levels seen at the biggest European and world settlement depositories. All this is attributable to the adequacy of our financial infrastructure’s services for foreign investors including transparency. However we are systematically doing all our best to provide for successful large-scale stock market operations, to improve our internal and global processes, particularly those aimed at supplying timely information to clients and investors.”
As a member of the MICEX Group, NDC was a first-time participant at the Sibos exhibition. The company represented Russian financial infrastructure, as well as MICEX Stock Exchange’s and NDC’s services to international financial institutions. All visitors at NDC’s stand were given an electronic practical guide “Gateway to the Russian market” made for foreign clients of Russian and global custodians. The disk is intended to help investment funds and institutional investors to plan and to make decisions.
MICEX Stock Exchange and NDC plan to participate in an upcoming event for investors from Asia and the Middle East to be held 10-11 November as part of the Russia Investment Road Show, organized by Eventica. Additional information about the event is available at http://www.russiaroadshow.com/eng/2008_Dubai/. Other joint MICEX Stock Exchange and NDC events for investors are planned for 26 and 27 November in Hong Kong and Singapore, with further information to be made available on the MICEX and NDC web sites.
Sibos contributes to the expansion of financial organizations’ cooperation all over the world, and in particular to better understanding of Russian financial infrastructure in European and global markets. Additional information about Sibos is available at www.SWIFT.com
About MICEX Group:
The MICEX Group, which integrates the trading and the settlement systems on a unified technological platform, provides trading, settlement, clearing depository and information services. The Group is comprised of the MICEX, the MICEX Stock Exchange, the National Mercantile Exchange, the MICEX Settlement House, the National Depository Center, the National Clearing Center, and regional exchanges, etc. These organizations serve about 1,700 market participants including leading Russian banks and brokerage companies located in Moscow and Russia’s large financial and industrial centers.
The MICEX Stock Exchange is the leading stock market in Russia, the CIS, and in Central and Eastern Europe. The volume of transactions concluded in 2007 reached US$4.2 trillion, and the average daily volume reached US$17 billion. The MICEX Stock Exchange is ranked 17th among the world’s stock exchanges based on the volume of exchange trading in corporate securities. The Exchange organizes trading in the securities of over 760 issuers whose total market capitalization is about US$1 trillion. The MICEX Group accounts for 98% of the total volume of trading in stocks on all Russian stock exchanges and over 70% of the global on-exchange volume of trading in Russian securities (including GDRs and ADRs).
Not-for-Profit Partnership “The National Depository Center” is the largest settlement depository in Russia, servicing the full range of equity securities of Russian issuers. NDC provides storage of global certificates and depository accounting for 99% of corporate bond issues, sub-federal and municipal bond issues. It services 100% of transactions conducted in the federal bond and the Bank of Russia bond markets, more than 99% of transactions conducted in the corporate and regional bond markets, and more than 99% of stock exchange transactions with equities and OTC trades. The international rating agency Thomas Murray has assigned NDC an АА- rating as a central depository. NDC is Russia's national numbering agency, and the substituting numbering agency for the CIS, authorized to assign the international ISIN and CFI codes.
Among NDC’s founders are MICEX and Bank of Russia (the founders’ shares in the property of NDC are 46.67% and 39.35% respectively, and in the votes 50.16% and 42.3% respectively). Members include GPB OJSC (Gazprombank), Evrofinans Mosnarbank, Rosbank, VTB Bank (Vneshtorgbank), Bank of Moscow, Rossiysky Credit Bank, Vneshekonombank, ING Bank Eurasia, JP Morgan Bank International LLC, UniCredit, Deutsche Bank, and Sberbank. The Partnership also has stakes in Depository Clearing Company CJSC (37.29%), in Settlement Depository Company CJSC (28.54%) and in Bank "National Clearing Centre" CJSC (0.67%).
For further information about NDC: www.ndc.ru, or NDC Public Affairs Department: +7 495 232 0910, .