The Moscow Interbank Currency Exchange (MICEX) and Deutsche Börse have signed a co-operation agreement. The two parties have agreed to provide what they call “a framework to internationalize the German and Russian financial markets with a view to attract additional investments in Russian companies.”
Under the terms of a Memorandum of Understanding (MoU) the two parties will enter into detailed discussions and share expertise in a variety of fields. The partners will develop joint projects and share, for example, information on the stock and derivatives market, post trade services and indices.
“With the MoU we formalize our long-standing relationship with the MICEX,” says Deutsche Borse CEO Reto Farncioni. “The MoU will be an important step towards bringing European and Russian market participants closer together.”
“The next phase of closer co-operation between Deutsche Börse and MICEX will foster the ties between the two exchanges which have been established over the past years,” adds Alexander Potemkin, president of MICEX.
The MICEX Group, which integrates the trading and the settlement systems on a single platform, includes the MICEX Stock Exchange, the National Mercantile Exchange, the MICEX Settlement House, the National Depositary Center, the National Clearing Center, regional exchanges and others.
Between them, the various parts of the MICEX group provide trading, settlement, clearing and depositary services to about 1,500 market participants across the foreign exchange market, the stock market, the market of corporate and regional bonds, the government bonds market, the market of derivative instruments and the cash market. MICEX has a market share of 90 per cent in Russia. In 2006, the total value of transactions on the MICEX amounted to about 1.9 trillion dollars, which is twice the GDP of Russia.