Not only professional traders, but also ordinary inhabitants know what MICEX and RTS are. Exchange trading has become a familiar part of everyday life, a stable topic of news feeds, it is discussed at the state level. But how is Russian trading arranged? What factors influence stock quotes? What was special about securities trading during the financial crisis? What are the principles of stock exchanges and what are the features of the history of the Russian trading market?
What is the stock exchange
Stock exchanges are organizations that are financial institutions where owners of shares and other securities make numerous transactions for the purchase and sale. This usually happens through intermediaries. Participants in the exchange are securities traders and various financial institutions. Trading is in accordance with the internal rules and regulations of a financial organization. A distinctive feature of the stock exchange from others is that only securities are the goods.
Their value is formed by the mechanisms of supply and demand, the purchase and sale occurs according to the regulations. Experts define several functions of stock exchanges. Firstly, it is mediation, creating conditions for the sale of securities with the participation of issuers and investors. Secondly, this is an indicative function - evaluating the price and attractiveness of stocks. Thirdly, this regulation is, in fact, the definition of rules and norms of trade. The history of trading in Russia knows the three largest exchange brands: Moscow Exchange, MICEX, RTS.
MICEX: from Soviet sources to the present
The MICEX (Moscow Interbank Currency Exchange) appeared in 1992. But it is worth noting that the first such financial institutions arose in Russia in the late 18th - early 19th centuries. In Soviet times, exchanges did not work. The MICEX originates from foreign exchange auctions arranged by Vnesheconombank. In the second half of the 90s, the exchange began trading futures, as well as corporate securities. The active work of the MICEX continued even in the 1998 crisis.
In the 2000s, trading volume on the stock exchange began to amount to hundreds of billions of dollars. Here appeared quotes of hundreds of companies. More than 200 of them have a total capitalization of more than $ 300 billion. The largest Russian firms trade shares on the MICEX: Gazprom, Lukoil, Rostelecom.
RTS: years of "independence" and merger with MICEX
For a long time, the MICEX coexisted with another exchange - RTS, which was created in 1995. Immediately after the launch, she got a special index. For the securities market of the Russian Federation, it has become one of the key. In 2000, the RTS Moscow Stock Exchange appeared, and on its basis - the FORTS market (known for options and futures). Since 2005, anyone could trade in anonymous mode via the Internet. Online trading has become so popular that most Russian-speaking users of the network began to understand what MICEX and RTS are, and why these structures were created.
In 2007, the RTS START financial solution appeared, at which small and medium-sized enterprises were able to trade in securities. Thus, the exchange has become a financial instrument, the capabilities of which have been useful to a wide audience: from ordinary citizens to any type of business. In 2008, on the initiative of the Moscow RTS Exchange, the Ukrainian Exchange appeared. Thanks to this, Ukrainian citizens got the opportunity to trade shares via the Internet. In 2008, the RTS stock market appeared on the RTS, in which the most liquid assets issued in Russia were traded. At the end of 2011, both financial organizations merged into OJSC Moscow Exchange. The MICEX, RTS, their projects and decisions nevertheless played a crucial role in the formation of the Russian stock market.
Factors determining the value of shares
The main indicator of the value of securities on exchanges is quotes. They are most often expressed in points or units of currencies. The factors that determine the MICEX and RTS quotes are generally based on market laws specific to other exchanges. First of all, these are indices on other trading floors. The situation in the world greatly affects Russian exchanges. Quotes usually reflect the profitability of the company. The higher it is, the higher the points on the exchange will be. Another factor is the policy of the authorities both in the external arena and within the country. If things in relations with other states do not work out very well, then this threatens investor distrust and capital outflows.
Foreign traders had a good time exploring the Russian stock market. They know what the MICEX and RTS are, as well as their successor in the person of the Moscow Exchange. Therefore, having received a negative signal from the political arena, they may decide to withdraw capital from Russia. Quotes on firms are affected by the publication of revenue and loss data. Securities of successful businesses are bought better and grow in value. The most important factor especially for Russia is oil prices. When the crisis began, many traders were surprised: "What is it?" The MICEX and RTS, it seems, showed excellent results, but suddenly the quotes collapsed at times. The point was the price of "black gold", which fell in price just as much.
Interesting about the MICEX
The MICEX, according to some analysts, is the largest exchange in Eastern Europe. Experts note that foreign investors are very sympathetic to this financial structure. The MICEX is trading stocks, shares, bonds, depositary receipts. The exchange allows negotiating transactions, repos, anonymous purchase and sale. Here you can trade options and futures. Along with the RTS, the MICEX, in the course of market formation, actively developed Internet technologies. The stock exchange began introducing online trading in stocks since 1999.
