Investors to benefit from merger of bourses

The two major Russian stock exchanges have completed their merger and have begun trading as part of one company. The integration of the MICEX-RTS is aimed at making Moscow more attractive as a financial centre.

The two indicies will continue to operate seperately, but the trading platform, clearing system and data centres will be combined.

The united bourse is intended to more competitive for investors and make it more attractive for companies to list in Moscow rather than abroad.

Analyst from Investcafe Nikita Ignatenko says it will have a positive impact on the plan to turn Moscow into fnancial centre. “Before the merger it was not convenient for investors to have two accounts on separate bourses. A united bourse will have the potential to attract more private investors and it will be able to compete with global financial centers due to new attracted investments and increased trading volume”.

Chris Weafer from Troika Dialog believes merger is an important part of market reforms in Russia. “This is the first step in making the local bourses more transparent and with better liquidity. The next step, on January 1, is even more important as the law creating a domestic central depositary kicks in. It really makes a huge difference from July when foreign investors will be able to open an account directly at the central depositary”, says Mr. Weafer.

Since the merger was announced at the beginning of the year, the Federal Antimonopoly Service (FAS) has laid down conditions to make sure one trading floor doesn't dominate.

The united bourse is headed by Ruben Aganbegyan current head of MICEX, and it will be his job to steer the new merged company towards an IPO in 2013.