Wider feet

The suspensions of trading on Russian exchanges will become more rare and predictable today by Russian RTS and MICEM exchanges will begin to work according to the new rules. Now the suspension of trading will take place only in trading mode on the basis of non -zero applications. The decision on this will be made on the basis of changes not by technical indices, as it was still, but the main indices of the RTS and MICEX.

The fact that such changes will occur became known on November 13 last year, when the Federal Financial Market Service issued an appropriate order. But he entered into force only from March 1. For one hour, bidding will be stopped if the index increased or decreased by 15% no later than at 16 hours local time. And until the end of the day they will be suspended if the stock index has changed in any direction by 25%. Until today, bidding for one hour has been stopped with a technical index by 10% or falling by 5%, and until the next day - with an increase of 15% or falling by 10%.

MICEX tightened the requirements for bond issuers According to the official message, the MICEX Stock Exchange from today comes into force by a new edition of Listing Rules - admission to the placement and circulation of securities. In connection with the numerous defaults on bonds that have occurred recently, the rules for exclusion from the quotation list (divisting) of bonds have been adjusted. To the grounds to exclude security from the list, a non -fulfillment of the issuer of obligations for these bonds has been added. Now the concepts of “default” and “technical default” have been introduced into the rules of work of the exchange, and the issues of issuers are also provided for to inform the exchange about such situations. According to the new rules, bonds that have the first level of the credit rating of one of the leading rating agencies will include in the quoting list A of the exchanges. The deadline for the security in the quotation list of the Birgin MICEX has been increased from six months to one year.

The suspension of trading of individual papers is now provided only for the most liquid shares included in the quotes of group “A”, as well as the index calculations (30 shares on the MICEX and 50 shares on the RTS). According to the new rules, it will be possible to suspend bidding for such shares for one hour if their cost fell 25% to 16 hours local time, and until the end of the day, if the price fell by 30%. Previously, these values were 15 and 25% in the technical index.

Experts express the opinion that the introduction of new suspension rules can help increase the volume of trading in our stock market, which are now extremely low. “After all, many investors have gone to London sites in recent months, precisely because of numerous trading suspensions in recent months,” said Avanes Oganesyan, an analyst at the Renaes Oganesyan Renaissance Capital market. “The new rules of suspension are more simple for understanding investors, and this is positive,” says Ilya Fedotov, head of the Veles -capital promotion analysis department. “Besides, they already take into account the fact of market volatility that has grown up over the past year. Now the fluctuation of paper quotes in 20% is no longer surprised. Actually, this is what the new rules are reflecting.”

03/01/2009 / Elena Melnikova Material published in the newspaper No. 35 dated 03.03.2009.