Moscow Exchange announced new services on the Stock Market

Starting from 2 September 2013 the Moscow Exchange will implement the following new services for markets participants:

• Introducing the Closing Auction, this will replace the current Post-trade Auction. The Closing Auction will use a new algorithm utilizing the principle of random auction termination, which precludes the market price from being artificially increased or decreased. The generated price of the Closing Auction will be recognized as the official closing price for the Russian market. The Closing Auction will happen from 18:40 to 18:50 MSK. Therefore, the end of trades will be moved from 18:45 pm to 18:40 pm MSK;
• Allowing the markets participants to specify a Compensation and Commission Clearing Account, from which a commission will be withdrawn for all deals done with the clearing accounts;
• Transferring Odd-lot mode to trade with partial pre-funding in T+2 mode;
• Updating the Dark Pool algorithm to allow trades with large blocks of securities to use T+2 mode to calculate settlement prices;
• Definition of IDs powers of the market participants on the T+0 and T+2 segments;
• Implementation of a new code Y0/Y2 for settlement on CCP REPO Order Book mode;
• Limiting CCP REPO Order Book mode trades to RUB 1 mn for stocks and RUB 10 mn for OFZ;
• The ability to place and trade euro-denominated securities and the introduction of EUR as collateral on deals in T+2 and CCP REPO modes to increase the efficiency of funding;
• The admission to trades 23 most liquid equities in CCP REPO Order Book mode;
• The admission to trades 13 most liquid bonds in CCP Negotiated deals mode and CCP Repo Off Order Book mode.

The final list of securities will be announced by 29 August 2013.

Impact on investors: The new services of the Moscow Exchange will expand the investments possibilities for investors and should allow increasing the efficiency of trades.