On 20 March 2007, the Board of the MICEX Stock Exchange adopted the Rules of trading on the MICEX SE derivatives market and the new version of the Rules of admission to trading on the MICEX SE derivatives market. The main changes include the designation of market makers and the exclusion of the “individual participant in trading” category from the structure of participation in the MICEX SE derivatives market. The Board also adopted the specifications of the MICEX Index futures. Trading in this instrument is expected to start within one month after the RF Federal Service for Financial Markets approves the Rules and the specifications.
The concept of the development of the derivatives market on the MICEX Stock Exchange provides for the designation of market makers with the purpose of improving liquidity on the derivatives market. To that end, amendments have been made to the Rules of admission and the Rules of trading. These amendments concern the rights and obligations of market makers, the terms and the order of granting the market maker status, the terms of termination of the performance of market maker’s obligations and the MICEX SE’s control over their performance. Market makers’ obligations include the simultaneous entry of buy and sell orders for a minimal volume with difference between quotations that does not exceed a certain maximum value (spread). The values of the spread and the minimal volume of orders are set by the Directorate of the MICEX SE. The MICEX may pay remuneration to traders acting as market makers.
The current version of the Rules of admission provides for the existence of the “individual participant in trading” category, which gives a participant in trading a minimal set of possibilities. In fact, the only difference between this participant in trading and the end client is the possibility to directly participate in trading via a special exchange terminal. This difference all but disappears with the wide spread of online trading, including trading by traders’ clients via broker systems connected to the Exchange’s gateway. Thus, the existence of the “individual participant in trading” category is no longer necessary, which is reflected in the new version of the Rules of admission.
The Board of the MICEX Stock Exchange also adopted the Specifications of the MICEX Index futures, previously approved by the Derivatives Market Committee.
The Specifications of the MICEX Index futures has the following parameters:
- contract size: 20 rubles X the Index value;
- tick size: 0.25 of the Index point;
- contract quotation: 100 X the MICEX Index value;
- contract months: the next 2 series from the standard quarter cycle (March, June, September, December).
Shortly, the new versions of the Rules of trading and admission and the Specifications of the MICEX Index futures will be submitted to the RF Federal Service for Financial Markets for registration.
