The MICEX Stock Exchange Begins To Collect Data On Ex-Pit Transactions

To receive information on ex-pit transactions, the MICEX Stock Exchange puts into operation, as of 24 January, a system of acquisition of data on ex-pit transactions, based on web services of the MICEX SE’s web site and certified means of cryptographic protection of information.

Interaction between professional participants in the securities market and the MICEX SE in the provision of information on ex-pit transactions is regulated by the Rules of Providing Information on Ex-pit Transactions by Brokers, Dealers, Managers, Investment Funds, Management Companies of Investment Funds, Mutual Funds and Non-state Investment Funds, adopted by the Directorate of the MICEX SE.

These Rules have been laid down in compliance with the Statute of Providing Information on Transactions, adopted by the RF Federal Service for Financial Markets 22 June 2006 (#06-67/pz-n). The Statute requires brokers, dealers, managers, investment funds as well as management companies of investment funds, mutual funds and non-state pension funds to provide to one of stock exchanges information on ex-pit transactions (except for repos) in securities listed on at least one stock exchange.

To provide information on ex-pit transactions to the MICEX Stock Exchange, a professional participant in the securities market must:

1.
• Sign with the MICEX SE an agreement of providing services in connection with submitting information on ex-pit transactions to the MICEX SE and an agreement of joining the Rules of Electronic Document Interchange (provided such an agreement has not been signed before). 2.
• Submit to the MICEX SE the power of attorney in the name of his representative authorized to provide to the MICEX SE information on ex-pit transactions and notarized copies of licenses of the professional participant in the securities market (licenses to perform broker activities and dealer activities and manage securities) issued by the Federal executive agency for the securities market. 3.
• Obtain a secret electronic signature key; obtain from the MICEX Center for the Management of Certificates an appropriate certificate in compliance with the Rules of Electronic Document Interchange, adopted by the MICEX (it is allowed to use the existing key, provided the market participant has one).

The share of trades transacted in the OTC market in the total volume of trades transacted in the Russian stock market is quite considerable. The collection of data on ex-pit transactions and the daily disclosure of these data by the MICEX Stock Exchange will improve the transparency of the market and enable traders to see the whole picture of the Russian market on the MICEX web site. Information on ex-pit transactions will contribute to fair pricing, as investors and professional market participants will have a much better idea of the market and transactions. Without doubt, the collection and disclosure of information on the OTC market will strengthen the role of the MICEX Stock Exchange on the Russian market and improve the Exchange’s interaction with professional participants in the securities market.