The combined bourse that will be formed from the merger of MICEX and RTS, Russia's two stock exchange groups, will float via IPO in 2013.
The listing, which is expected to be worth around US$300 million, will ensure that the new vertically integrated exchange takes account of the interests of multiple market participants.
RTS and MICEX first agreed to merge in February this year as part of the Russian government's plans to turn Moscow into a financial centre by attracting new issuers and international investors. It is so far the only exchange merger to be approved this year, following failed attempts by the London Stock Exchange to acquire Canada's TMX Group and the Singapore Exchange to buy the Australian Securities Exchange. Potential mergers between Deutsche Börse and NYSE Euronext and multilateral trading facilities BATS Europe and Chi-X Europe are also being scrutinised by regulators.
The deal values RTS at US$1.15 billion and MICEX at US$3.45 billion, with the larger trading venue to pay for 35% of the stake in cash and 65% in stock.
Following approval from Russia's Federal Antimonopoly Service, granted earlier this month, the two markets will now seek to combine into one legal entity by December and subsequently begin the process of integrating staff and technology platforms.