In 2004 total trading volume on FORTS (Futures & Options on RTS), the derivatives segment of the RTS Stock Exchange, exceeded the 2003 total trading volume by 1.6 times and reached the all-time record. The number of trades increased by 1.7 times. In 2004 1.5 million trades in 42 million contracts were executed with total volume reaching 338 billion rubles. Total yearly open interest as of December 31st, 2004, stood at 8 billion rubles, 992 thousand contracts, 3,5 times more in ruble equivalent and 2.9 more in contract equivalent compared with the figures as of December 31st, 2003. In 2004 the maximum total open interest on FORTS reached 13 billion rubles.
The options contract segment was the fastest growing one in 2004. Compared to 2003 total trading volume in rubles increased by 2.2 times in rubles and by 1.8 times in contracts. The number of trading in options contracts grew by 1.5 times. 50 thousand transactions with 3.3 million options contract with total volume of 27 billion rubles were executed. Total open interest as of December 31st, 2004, equaled 2.9 billion rubles, 345 thousand contracts, having increased 5.3 times in rubles and 4.9 times in contracts.
Market Instruments
In 2004 the share of the most liquid contract – "RAO UES of Russia" single stock futures - fell from 66% to 54% and reached 182 billion rubles. The share of "Gazprom" single stock futures increased from 7% to 19.6% (the 2004 volume equaled 66 billion rubles). "LUKOil" futures’ share dropped slightly, from 12.9% in 2003 to 12.8% (43 billion rubles). The most liquid contracts in 2004 were options on ‘RAO UES of Russia’ (3.9%) and "LUKOil" (2.6%). In 2004 two new instruments started trading on FORTS – options on "Rostelecom" futures and "Norilsk Nickel" single stock futures. 8 futures and 4 options contracts currently trade on FORTS.
Market Participants
In 2004 the number of client accounts on FORTS grew by 1.5 times and reached 4 730. Last year 12 new companies including 8 banks became clearing members. At the end of the year the total number of clearing firms equaled 86. "Web-invest.ru" and, "Alor+" and "Eltra" remained the leading market participants in 2004. "Brokercreditservce" moved from the 5th place to the 4th. "OLMA" investment company that in 2003 occupied the 14th place rose in 2004 to the 5th position in the ratings. "Eltra" company remained the leading options contracts trader. Bank "Zenit" jumped from the 34th to the second, "OLMA" came in third in the options trading ratings.
Trading Technologies and System of Guarantees
In 2004 the RTS Stock Exchange continued to its system of guarantees on FORTS; in accordance with this policy the size of guarantee and reserve funds was gradually increased to keep pace with the increased trading volumes. In December 2004 the size of the RTS Clearing Center Reserve Fund that consists of the RTS Group proprietary funds, increased by 1.5 times to 90 million rubles. The Guarantee fund payments increased fourfold over the last year and reached 1 million rubles. As of December 31st, 2004, the total size of the guarantee system equaled 162 million rubles, the 2.5 times increased over the year.
In 2004 the exchange implemented the new technology of the "unified cash account" that allows timely cash transfer between FORTS and the group’s Order-driven Market, including "Gazprom" stock market. As a result of this change the time of cash transfer between the markets dropped from 60 to 3 minutes.
