At the meeting, the General Director of the MICEX Stock Exchange Alexei Rybnikov said that the MICEX SE is the undisputed leader of the Russian stock market by the total value of trading. In 2005, the proportion of the MICEX Stock Exchange in the total value of the Russian stock market exceeded 85%. The total value of trading in non-government securities, including operations with stocks, bonds and repos, amounted to 6.4 trillion rubles (225.6 billion dollars), an almost 1.5-fold growth over 2004 (4.4 trillion rubles). In 2005, the daily average trade volume amounted to 25.9 billion rubles, while in April 2006 this figure reached 68.7 billion rubles. In 2005, the MICEX Index grew by 83% from 552.22 to 1011.00 points, while by the end of April it rose by 44% to 1451.06. The total number of instruments traded on the MICEX SE amounted to 673 securities of 417 issuers and unit funds. Of those, 178 securities of 97 issuers were listed (as of 31.12.2005). At the beginning of 2006, 134.1 thousand clients were registered in the MICEX SE trading system (over 103.9 thousand at the beginning of 2005), a 29% growth. On 1 April 2006, the total number of clients reached 157 100. In March 2006, the number of transactions carried out daily in the MICEX SE trading system averaged 117 thousand, in January 2005: 48.6 thousand.
In 2005, the volume of stock trading amounted to 4.0 trillion rubles (including repos). Over 2005, the capitalization of the market of stocks traded on the MICEX SE grew by 73% to 7.4 trillion rubles (258.6 billion dollars), while by the end of April 2006 it grew to 18.4 trillion rubles (669 billion dollars), accounting for about 85% of the GDP. Early in 2006, trading in Gazprom shares was launched on the MICEX SE. The proportion of this segment in the total value of trading grew from 10% on the first day of trading (23.01.2006) to 68% in April (27.04.2006). In 2005, the volume of placement and secondary trading in bonds amounted to 2.4 trillion rubles (including repos). This included the placement of 168 bond issues for the amount of 313 billion rubles. 69 units of 33 management companies are traded on the MICEX SE. In 2005, the volume of trading in units in unit funds amounted to 1.54 billion rubles, which exceeds more than 10 times the figure for 2004.
Speaking about the main projects implemented in 2005, the MICEX SE General Director noted the following projects:
- the MICEX EX launched a new trading mode “repos with bonds”;
- market makers began to perform their duties in secondary trading in bonds;
- the Exchange established a sector for bonds of international financial organizations (placement of EBRD ruble bond issue);
- the MICEX EX established an IPO sector (the Exchange implemented the procedure of placement of stocks on the MICEX SE and signed an agreement with the LSE to promote Russian companies on the domestic market and external markets);
- the MICEX SE prepared proposals for a special IPO sector for innovation and growing companies;
- to improve the system of corporate management, the MICEX SE established the Stock Market Committee, the Information and Technological Policy Committee and the Index Committee.
At the general meeting, stockholders were presented proposals for priority areas of development of the MICEX Stock Exchange, which are to be considered by the new Board of the MICEX SE. The Exchange’s strategic priority is strengthening its position as Russia’s national stock exchange and an international center of liquidity and pricing of Russian financial assets. Important projects include mass IPOs of Russian companies, the creation of the sector for innovation and growing companies, the launch of trading in derivative instruments on stock assets, the creation of the institute of exchange specialists, etc.
Stockholders elected the Board of the MICEX Stock Exchange (11 people), which will work till the next annual general stockholders’ meeting. The Board is comprised of:
- Alexander Potemkin (President of the MICEX);
- Alexei Rybnikov (General Director «MICEX SE»);
- (General Manager and Head of the Financial Markets Department of International Moscow Bank);
- Sergei Lykov (Deputy Chairman of the USSR Bank for Foreign Economic Activity);
- Alexei Akinshin (Deputy President-Chairman of the Board of Vneshtorgbank);
- Bella Zlatkis (Deputy Chairperson of the Board of Sberbank);
- Gennadi Mayatski (Vice-President of Eurofinance Mosnarbank);
- Sergei Koshelenko (Deputy Chairman of the Board of Rosbank);
- Vladimir Tatsii (Vice-President and Head of the Depositary Center of Gazprombank);
- Mikhail Belyaev (General Director of KIT Finance);
- Mikhail Sukhobok (Deputy General Director, Director of the Department for Investment projects of Otkrytie Investment Group (Otkrytie Broker House).
Stockholders elected Oleg Labutin (Director of the MICEX Financial Department), Vyacheslav Ulupov (Director of Vnesheconombank’s Department for Internal Control and Audit) and Yuri Yukin (Vice-President and Head of Eurofinance Mosnarbank’s Internal Control Service) members of the MICEX SE Auditing Committee till the next annual general meeting.
Summing up the results of the MICEX SE’s financial and economic performance in 2005, stockholders approved the MICEX SE’s balance sheet, the statement of financial results and the profit and loss statement. According to the MICEX SE’s accounts, prepared under Russian standards, in 2005, the net profit of the MICEX SE amounted to 97.045 million rubles (in 2004: 4.223 million rubles). The general meeting decided to pay dividends for the total amount of 9.705 million rubles for the results of 2005 financial year.
Deloitte & Touche CIS is appointed the MICEX SE’s auditor till the next annual general stockholders’ meeting.
The MICEX Stock Exchange is Russia’s leading floor, where securities of over 470 Russian issuers trade daily. About 550 organizations - professional participants in the securities market trade on the MICEX SE. The MICEX Stock Exchange was established in 2003 with authorized capital of 100 million rubles. At present, the MICEX SE stockholders are 23 organizations, including the MICEX, leading commercial banks and brokerages and the Association of Russian Banks.
Find more information on the MICEX Stock Exchange at http://www.micex.ru/fbmmvb.
