Based on Guaranteed Trading System (GTS) and "Gazprom" market technologies, RTS and St. Petersburg Stock Exchange have developed the Order-driven market. Trading of common and preferred stocks of Russian companies on the market is anonymous, with prior deposition of assets. Trades are settled in Russian rubles.
Market participants trade 373 stocks by 237 issuers that used to list on the GTS. The same technology employed in the past for "Gazprom" trading is being used on the newly developed market segment. Trading is conducted on St. Petersburg Stock Exchange, clearing - through the RTS Stock Exchange Clearinghouse, settlement - via the RTS Stock Exchange Settlement Chamber. Depositary services are being provided by Depositary and Clearing company and "Gazprombank" Depositary. Currently 123 companies work on the Order-driven market.
Trading in all securities can be conducted from one account. During a session traders can transfer assets between Order-driven market and FORTS derivative market. What sets Order-driven market apart from most of its competitors is that the market doesn't differentiate between different issues of the same security, thus increasing liquidity of each stock.
To make sure the market is liquid, Specialist and Market Maker status is being established at the newly formed segment. As of now, 12 companies maintaining firm double-sided quotations with certain spreads on 8 stocks are considered Specialists and Market Makers. Among these stocks are "RAO UES" of Russia common stock (RTS Symbol - EESRG), "Norilsk Nickel" (GMNKG), "LUKoil" (LKOHG), "Mosenergo" (MSNGG), "Rostelecom" (RTKMG), "Sberbank of Russia" (SBERG), "Surgutneftegaz" (SNGSG), "Yukos" (YUKOG) common stocks. Compared to those of a Market Maker, a Specialist's obligations are stricter.
Order-Driven Market Specialists:
Alfa Bank
ATON
Metropol
United Financial Group
Renaissance Broker
Troika Dialog
Order-Driven Market Market-Makers:
Alor-Invest
Web-invest
LAND
Prologue
The Fourth Dimension
Total Order-Driven Market Volume Reaches $38.8 Million USD in One Week
Total trading volume on the Order-driven market reached $38.8 million US dollars in the first week of the market's existence (October 1st - October 7th). The most actively traded stock was "Gazprom"; its shares traded 2, 354 times with total turnover of $15.9 million US dollars. Other stocks traded on the RTS Order-driven segment 2, 393 times; their total trading volume reached $ 22,9 million USD.
The RTS Starts Selling Standard RTS Stocks Service Systems for Order-Driven Market Traders
The RTS Stock Exchange starts selling standard RTS Stocks service packages providing full access to the Order-driven market trading and settlement systems. The package includes:
- "Plaza Stocks" workstation;
- RTS Internet gateway;
- Account Management system used to manage accounts in RTS Settlement Chamber and Depositary and Clearing Company.
The creation of a standardized package will help decrease the participants' transaction costs, ease the access to the system and speed up connection process. The package installation costs 290 US dollars; monthly service fee equals 155 dollars. Buying an entire service package will help clients save 20% compared to buying services separately.
On top of this, the following decisions aimed at reducing connection fees and operating charges have been made:
- St. Petersburg Stock Exchange Joining Fee was cancelled;
- A company wishing to trade on Order-driven market doesn't necessarily have to join the RTS Partnership;
- Total trade registration and execution charge on order-driven market equals 0,0075% of the trade, including VAT;
- The RTS Settlement Chamber and Depositary and Clearing Company do not charge any separate fees;
- Up until December 31, 2002, the RTS Internet gateway installation will be free of charge. After that, the installation fee will equal 150 US dollars, compared to 300 dollars in the past. Monthly service fee was lowered from 150 to 100 US dollars monthly.
The Order-driven market is the unified RTS and St. Petersburg St. Exchange marketplace where corporate stocks are traded. Market participants can submit directly or arbitrarily addressed quotes. Trading is being done via St. Petersburg St. Exchange, clearing - through the RTS Stock Exchange Clearinghouse, settlement - via the RTS Stock Exchange Settlement Chamber. The electronic trading system can be accessed via "Plaza Stocks" workstation or through the Internet-trading gateway. Private investors can trade on the Order-driven market by becoming clients of licensed brokerages/investment houses. Currently 123 companies work on the RTS order-driven market and trade 373 stocks by 237 issuers.
