The Moscow Exchange has released details of its IPO, marking another step in the bourse's effort to appeal to overseas investors.
Moscow Exchange - formed through the recent merger of MICEX and derivatives-focused RTS - will list its shares on its own market. The exchange had 694 stocks listed on its platform as of 31 December 2012 and also offers trading, clearing and settlement of bonds, FX, derivatives and money market transactions.
The IPO is expected to boost Moscow Exchange's efforts to attract more foreign investment flows. Much of the trading in Russian shares by international investors is conducted via depository receipts listed on the London Stock Exchange's International Order Book.
"After several years of preparation, we are delighted to be announcing our intention to bring Moscow Exchange to the public market," said Sergei Shvetsov, chairman of the Moscow Exchange's supervisory board and deputy chairman of the Central Bank of Russia. "The Exchange's own listing is a key element of our strategy to promote the development of the local capital markets as well as to broaden the regional and international appeal of Moscow as a financial centre. As a public company, Moscow Exchange will be committed to demonstrating leadership in corporate governance practices and transparency."
As well as the exchange merger, the vertically-owned National Settlement Depository is now recognised as a central securities depository, removing a key barrier for US investors that want to trade in Russia. Moscow Exchange is also planning a 2015 upgrade of its matching engine to a new multi-asset class system and is planning to move to a T+n settlement period, moving away the current T+0 regime that requires trades to be pre-funded before they can be executed.