November 1, 2011
MICEX Group
MICEX Group: history
1992–1995
● Establishment of the MICEX
● Implementation of the MICEX electronic trading and depository system
● The MICEX is the main trading floor for currency and government securities
1995–1998
● Integration of the MICEX and regional exchanges into a national exchange system
●
●
based on a single platform
Organization of trading in corporate securities and derivative contracts
Establishment of the MICEX Settlement House and the NDC
1998–2008
● Emergence of the modern structure of the MICEX Group: establishment of the
●
MICEX Stock Exchange, the National Mercantile Exchange,
the National Clearing Centre and regional exchange centers
The MICEX is the largest exchange in Russia, the CIS, Eastern
and Central Europe. It is the main center of liquidity for Russian assets
2009–2010
● Formation of the system of auctions, to be held electronically, to place state and
●
municipal orders
MICEX-IT: operator of the MICEX electronic trading floor Goszakupki (State
Purchases)
Shareholders of the MICEX Group companies:
● Central Bank of the Russian Federation, Association of Russian Banks, VEB,
Sberbank RF, VTB, Rosbank, UniCredit Bank, 8 other leading commercial banks of
Russia, leading Russian brokers
2
MICEX Group: financial supermarket
● The MICEX Group provides trading and settlement
services in the following segments of the financial
market:
۰ FX market (since 1992)
۰ federal bonds market (since 1993)
۰ market of derivative financial instruments (since 1996)
۰ cash equities market (since 1997)
۰ corporate and regional fixed income market (since 1999)
۰ commodities market (since 2008)
۰ market for state and municipal orders (since 2010)
● Operates under the licenses of:
۰ Central Bank of Russian Federation
(FX market)
۰ Federal Service for the Financial Markets
(securities and derivatives markets)
۰ Ministry of the Antimonopoly Policy
(derivatives and commodities markets)
3
MICEX Group: functional structure
MICEX
• Trading: federal bonds, USD–RUB, EUR–RUB, EUR–USD,
FX and interest rates futures
• Government securities and derivatives clearing
• IT support of MICEX Group
National
Mercantile
Exchange
• The State commodity
interventions in the
grain market
• Trading: grain futures
National Clearing Centre
MICEX– IT
• Soft- and hardware solutions
• Electronic trading floor for
state purchases
• FX clearing
• Securities clearing
MICEX
Stock Exchange
National Settlement
Depository
• Trading: cash equities, corporate and regional
bonds, mutual funds, stock market derivatives
• Listing of securities
• Safe custody and
securities settlements
• Cash Settlements
Regional affiliates
and representative offices
Vladivostok Yekaterinburg
N. Novgorod
Novosibirsk Rostov-na-Donu St.-Petersburg
Krasnodar
Krasnoyarsk Samara
4
MICEX Group: the national financial infrastructure
St.-Petersburg
Novosibirsk
N. Novgorod
Vladivostok
Moscow
Samara
Rostov-on-Don
Yekaterinburg
5
MICEX Group: structure of the volume of transactions
bln USD
Volume of transactions
on MICEX Group markets
Daily average volume of transactions
on MICEX Group markets, mln USD
Jan-Oct
2009
2010
2011
7000
Commodity market (grain futures)
6000
Derivatives market
5000
4000
Securities market
FX market
12,056.0 10,549.5 11,397.9
Federal bonds market
Federal bonds market 4,102.4
3,403.8
5,946.5
Cash equities market
3,358.5
3,998.1
6,309.6
Corporate and
regional fixed income
market
1,877.4
4,499.3
6,114.2
Derivatives market
76.7
200.3
120.2
Commodity market
(grain futures)
5.7
5.9
3.8
FX market
3000
2000
1000
0
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Total
21,478.7 22,661.0 29,902.0
6
MICEX: FX market
● Trading is held in six currencies:
●
●
●
●
V olume of transactions and the
e xchange rate of the dollar
the US dollar, the Euro, the Bi-currency
bln USD
USD/RUR
basket, the China yuan, the Ukrainian
1400
36
hrivna, the Kazakhstan tenge,
the Byelorussian ruble
34
Settlements on the currency market are 1200
effected on “today” and “tomorrow”
basis
1000
32
Based on the results of trading on the
MICEX, the Russian Central Bank fixes 800
30
the official CBR exchange rate of the
US dollar
600
28
The volume of transactions in 2010
reached 2,616.3 bln USD, which is 13% 400
26
less than in 2009
The volume of transactions in January–
200
24
October 2011 reached 2,336.6 bln
USD, which is 9% more than in January–
0
22
October 2010
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q
2006
2007
2008
2009
2010
2011
7
MICEX: the federal bonds market
● The MICEX organizes the primary
●
●
●
●
placement and the secondary circulation points
of federal bonds and Bank Of Russia
135
bonds (OBRs)
The volume of transactions in 2010
130
reached 844.1 bln USD, which is 17%
less than in 2009
125
The RGBI Index increased in 2010
by 2.5% to 130.67 points
120
The volume of transactions in January–
October 2011 reached 1,219.0 bln USD, 115
which is 87% more than in January–
October 2010
110
The RGBI Index decreased in January–
October 2011 by 0.9% to 129.52 points
The volume of transactions
and the RGBI Index
bln USD
700
105
100
600
500
400
300
200
100
0
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q
2006
2007
2008
2009
2010
2011
8
MICEX: the nominal value of the federal bonds market
● The nominal value of the federal bonds
●
●
●
market grew 9 times during 2004—2011
to 2.81 trillion RUB
The share of OFZ-AD in the nominal
value of the federal bonds market —
33.3%; OFZ-PD — 66.7%
The market value of the federal bonds
market reached 2.79 trillion RUB (93.4
bln USD) by the October 31, 2011
Turnover velocity of the federal bonds
market in January–October 2011 was
118.2%
trillion RUB
2,5
2
1,5
1
0,5
0
1H
2H 1H
2H 1H
2H 1H
2H 1H
2H 1H
2006
2007
2008
2009
2010
2011
9
MICEX SE: the equities & bonds market
● The MICEX Stock Exchange —
●
●
●
the leading stock exchange in Russia
In 2010 the MICEX SE’s share in the
Russian equities & bonds market
turnover reached 95%
The volume of transactions in 2010
reached 2,108.4 bln USD, which is 62%
more than in 2009
The volume of transactions in January–
October 2011 reached 2,548.9 bln USD,
which is 51% more than in January–
October 2010
Turnover on Russian exchanges
in 2008–2011, bln USD
MICEX SE
RTS
2008
2009
2010
Jan–Oct
2011
1,985.6
1,304.2
2,108.4
2,548.9
13.0
54.2
118.5
109.5
10
MICEX SE: the equities & bonds market
Number of issuers on the MICEX SE
Issuers on the MICEX SE
2009*
2010*
2011*
(* – at begining of the month)
October 31,
2011
Total number
of issuers
773
690
693
653
Issuers of
equities
232
234
249
254
Issuers of
bonds
503
* at beginning of the year
417
391
346
No vember
2011*
254
391
2011
249
346
417
2010
234
503
2009
Bonds
Equities
232
0
100
200
300
400
500
600
11
MICEX SE: cash equities market
● 307 equities of 254 issuers are traded
●
●
●
●
on MICEX SE
90 equities of 95 issuers are listed
on MICEX SE, including such
companies as LUKOIL, Rostelecom,
Sberbank and VTB
The volume of transactions with equities
in 2010 reached 991.5 bln USD, which
is 19% more than in 2009
The volume of transactions with equities
in January–October 2011 reached
1,293.5 bln USD, which is 61% more
than in January–October 2010
The MICEX Index reached 1,498.60
points by the October 31, 2011
(from the beginning of 2011, а increase
of 9.7%)
bln USD
Volume of transactions and
the MICEX Index
500
points
2500
400
2000
300
1500
200
1000
100
500
0
0
1Q 2Q 3Q4Q 1Q 2Q3Q 4Q 1Q2Q 3Q 4Q1Q 2Q3Q 4Q 1Q2Q 3Q 4Q1Q 2Q 3Q
2006
2007
2008
2009
2010
2011
12
MICEX SE: equities market capitalization
● Equities market capitalization increased
●
●
6.5 times during 2004—2011
Equities market capitalization decreased in
January–October 2011 by 9% to 864.7 bln
USD
The most capitalized companies are:
۰ Gazprom — 143.6 bln USD
۰ Rosneft — 77.9 bln USD
۰ Sberbank — 50.0 bln USD
● Turnover velocity of the equities market in
January–October 2011 was 63.7%, which is
9.2 percentage points more than in
January–October 2010
bln USD
1400
1200
1000
800
600
400
200
0
1H 2H 1H 2H 1H
2H 1H 2H 1H 2H 1H
2006
2007
2008
2009
2010
2011
13
Oct/ 11
Jul/ 11
Apr/ 11
Feb/ 11
Oct/ 10
Aug/ 10
May/ 10
Feb/ 10
Nov/ 09
Aug/ 09
May/ 09
Feb/ 09
Nov/ 08
Sep/ 08
Jun/ 08
Mar/ 08
Dec/ 07
Sep/ 07
Jun/ 07
Mar/ 07
Dec/ 06
Sep/ 06
Jul/ 06
Apr/ 06
Dec/ 05
MICEX SE: the MICEX Index dynamics
2,000
1,800
1,600
1,400
1,200
1,000
800
600
400
14
MICEX SE: corporate and regional fixed income market
● 739 bonds of 342 issuers are traded on
●
●
●
●
MICEX SE. The total nominal value of
corporate and regional bonds in circulation
is 122.2 bln USD (as of October 31, 2011)
458 bonds of 216 issuers are listed
on MICEX SE
The volume of transactions with corporate
and regional bonds in 2010 reached 1,115.8
bln USD, which is 2.4 times more than in 2009
The volume of transactions with corporate
and regional bonds in January–October 2011
reached 1,253.4 bln USD, which is 41% more
than in January–October 2010
In June 2009, a record-high volume of
corporate bonds was placed on the MICEX
SE. The volume of placements amounted to
201.8 bln RUB
Nominal value of corporate and regional
bonds in circulation, bln USD
140
120
100
80
60
40
20
0
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q
2006
2007
2008
2009
2010
2011
15
MICEX SE: the nominal value of the corporate bonds market
● The nominal value of the corporate
●
●
bonds market grew 22 times during
2004—2011 to 100.7 bln USD
The market value of the corporate
bonds market reached 58.8 bln USD
by the October 31, 2011
The biggest issuers in terms of the
nominal value of bonds issues:
۰ RZD — 6.5 bln USD
۰ Transneft — 4.5 bln USD
۰ Rossekhozbank — 3.5 bln USD
bln USD
120
100
80
60
40
20
0
1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H
2006
2007
2008
2009
2010
2011
16
MICEX SE: the nominal value of the regional bonds market
● The nominal value of the regional bonds
●
●
market grew 9.2 times during 2004—
2011 to 21.9 bln USD
The market value of the regional bonds
market reached 8.8 bln USD by the
October 31, 2011
The biggest issuers in terms of the
nominal value of bonds issues:
۰ City of Moscow — 14.4 bln USD
۰ Moscow region — 1.4 bln USD
۰ Samara region — 0.8 bln USD
bln USD
25
20
15
10
5
0
1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H
2006
2007
2008
2009
2010
2011
17
MICEX: the derivatives market
The daily average volume of transactions and
open interest, mln USD
● The instruments traded in MICEX
●
●
●
derivatives market are: currency futures,
futures on OFZ baskets, interest rates
futures, Micex Index futures, single stock
futures (Gazprom, Sberbank, Norilsk
Nickel, LUKOIL)
Total trading volume in October 2010 —
October 2011 — 42.2 bln USD
End-of-October open interest —
681.5 mln USD
Record daily volume — 2.1 bln USD
Trading volume
Open interest
2000
400
1500
300
1000
200
500
100
0
0
Oct Nov Dec Jan Feb Mar Apr May June July Aug Sep Oct
2010
2011
Trading volume
Open interest
18
MICEX Group: clearing and settlement
Federal bonds market
Depositing of
funds
rubles
securities
Multilateral clearing
with netting
NSD
(eurobonds)
MICEX
MICEX SE
MICEX
MICEX
(non-centralized)
(centralized)
Settlements
for rubles
for securities
for currency
Currency market
Derivatives market
National Settlement Depository
hard
currency
Registration of
transactions
Securities market
J.P.Morgan Chase Bank;
VTB BANK (Deutschland)
AG and others
MICEX
National Clearing
Centre
(centralized)
NCC
via accounts with NSD
NSD
NSD
(eurobonds)
MICEX SE
(stock assets)
MICEX
(centralized)
NSD
NCC
via accounts with J.P.Morgan
Chase Bank; VTB BANK
(Deutschland) AG and others
19
MICEX SE: listing requirements
А1
А2
B
V
I
75%
75%
90%
—
—
CS — 10 bln
PS — 3 bln
CS — 3 bln
PS — 1 bln
CS — 1,5 bln
PS — 500 mln
—
CS — 60 mln
PS — 25 mln
1 bln
500 mln
300 mln
300 mln
—
3 years
3 years
Profitability
2 years of last 3
2 years of last 3
Min. monthly trading volume for last 3 months to
enter the list, RUB*
Stocks — 25 mln
Bonds — 10 mln
Min. average monthly trading volume to maintain
listing, RUB (the last 6 months)
Stocks — 50 mln
Bonds — 25 mln
Requirement
Maximum share of one shareholder and affiliated
parties
Minimum Market capitalization, RUB
Min. volume of bonds offered, RUB
Minimum establishment of the company
Issuer’s credit rating and/or issue of bonds
by a credit agency
* requirement does not apply to commercial papers
—
—
Stocks — 2 years of
last 3
—
Stocks — 2,5 mln
Bonds — 1 mln
Stocks — 1,5 mln
Bonds — 0.5 mln
—
—
Stocks — 5 mln
Bonds — 2,5 mln
Stocks — 3 mln Bonds —
1 mln
—
Stocks —
1 mln**
Stocks
The formalized requests on observance of the Corporate Governance norms with confirmation
documents
Bonds
The formalized requests on
observance of the Corporate
Governance norms with
confirmation documents
Issuer’s observance of the Corporate
Governance norms
Financial accounting
3 years
1 year
(сomm.рapers — 3 years) (bonds — 6 months)
IAS / US GAAP
Obligatory
**the last 2 months
—
—
—
—
—
—
—
—
—
—
20
MICEX: leader among exchanges of the CIS and CEE
● The capitalization of the Russian stock
●
●
market is 56% of Russia’s GDP
in 2010 or 864.7 trillion USD
(as of November 1, 2011)
The volume of trading in the Russian
stock market is over 63% of the stock
market of the countries of the CIS,
Central and Eastern Europe combined
The MICEX SE is among the world’s
20 largest stock exchanges
The volume of trading on the equities market in January–October 2011
and the number of issuers
#
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
Exchange
NASDAQ OMX
NYSE Euronext (US)
Tokyo SE Group
Shanghai SE
London SE Group
Shenzhen SE
NYSE Euronext (Europe)
Korea Exchange
Deutsche Börse
BME Spanish Exchanges
TMX Group
Hong Kong Exchanges
Australian SE
BM&FBOVESPA
SIX Swiss Exchange
Taiwan SE Corp.
NASDAQ OMX Nordic Exchange
National Stock Exchange India
MICEX
Johannesburg SE
Istanbul SE
Singapore Exchange
Saudi Stock Market - Tadawul
Oslo Børs
The Stock Exchange of Thailand
Turnover,
USD bln
24,816.25
16,671.00
3,812.00
3,249.24
3,075.16
2,440.59
2,061.38
1,744.12
1,655.69
1,337.82
1,322.53
1,274.16
1,213.48
801.49
790.49
786.78
786.07
514.37
461.27
394.84
363.59
253.37
238.69
228.66
203.00
Number of issuers
2,706
2,306
2,284
927
2,893
1,377
1,125
1,803
744
3,280
3,925
1,472
2,019
377
282
812
767
1,631
255
398
359
772
149
238
542
Source : World Federation of Exchanges
21
MICEX Group: advanced information technologies
● The base of the structure of the global
●
●
●
MICEX trading network are the two data
centers: main and reserve center
The hard- and software complex is built
on the Hewlett-Packard UNIX-servers
(about 100)
About 700 000 clients are connected to
the trading system
MICEX trading complex currently
processes :
۰ up to 2 000 000 orders a day
۰ up to 850 000 transactions a day
● The trading infrastructure is supported
by 6 providers of telecom services. More
than 1500 workplaces and more than
300 electronic broker systems (via the
Internet gateway provided by the
MICEX) have access to the trading
network
22
MICEX Group: IT Infrastructure
Wide-area telecom infrastructure
(“MICEX Trading Network”)
MICEX
Main
Computer Center
Back-up
Computer Center
Trading Members
connected via
Trading Network
Core Telecom Infrastructure
Market Information
Dissemination
Systems of
Information
Agencies
Telecom Providers
Trading Halls
Internet Access
System
Web-server
Regional Access Centers
Electronic Broker Systems
Clients receiving
Market Information
via Internet
Trading Members connected via
MICEX Internet Access Systems
Clients of
Electronic
Brokers
Internet
Clients of Electronic Brokers
connected via Internet
Electronic Broker
Systems connected
to Regional Centers
Trading Members
connected to
regional Centers
Clients of Electronic
Brokers connected
to Regional Centers
23
Contacts
● Address:
۰ 13, B. Kislovskiy per., Moscow, 125009, Russia
● Telephone:
۰ +7 495 234-48-11
● Fax:
۰ +7 495 705-96-22
● E-mail:
۰ info@micex.com
● Web-server:
۰ www.micex.com
24
Prepared by Information and Analysis Division of MICEX