Citi will join a host of investment banks establishing direct market access (DMA) to the Moscow Exchange and opening up its algorithmic offering to let clients trade Russian securities.
In September, Citi and competing investment banks Credit Suisse, Merrill Lynch and Morgan Stanley will begin offering DMA to clients to trade on Moscow Exchange.
The move is largely driven by significant market infrastructure changes including the adoption of the T+2 settlement regime and the establishment of central clearing and a centralised trade depository.
“The exchange has recently introduced a series of structural enhancements which have significantly improved the trading and settlement process in this market,” Andrew Thompson, Citi’s EMEA head of equities said.
“We have been thoroughly preparing our platform for these changes and are pleased to be one of the first brokers to offer electronic trading on this venue to clients.”
Citi Russia has local investment banking capabilities as well as integrated equity brokerage operations.
The move to T+2 is the most recent in a string of initiatives designed to modernise Russia’s premier exchange. This included the creation of the exchange itself after the 2011 merger of the country’s largest trading venues MICEX and RTS.
Other reforms include granting Euroclear access to the country’s central securities depository to offer post-trade services for liquid government bonds, Russian OFZs, announced last year.