.jpg)
After discussing the results of the MICEX’s financial and economic performance, stockholders adopted the balance sheet, the financial statement and the allocation of profit and loss. According to the accounts, prepared by Russian standards, in 2004, the MICEX assets grew 23% to 7.8 billion rubles, the net profit grew 2.7 times and reached 512.234 million rubles (in 2003: 188.068 million rubles). Stockholders decided to distribute the net profit in the following way:
- payment of the dividend: 51.224 million rubles (443.82 rubles per one common registered share);
- deductions to the reserve fund: 27.074 million rubles (increase from 22.926 million rubles to 50 million rubles, in compliance with the provisions of the Federal Law “On joint-stock companies” on forming reserve funds in the amount of not less than 5% of the authorized capital);
- deductions to the reserve fund to cover risks related to settlements for the results of currency trades: 130.0 million rubles (increase from 111 million rubles to 241 million rubles to secure the reliability of the risk management system in the conditions of increasing volatility of the currency market);
- deductions to the reserve fund to cover risks related to operations carried out in the MICEX Derivatives Market Section: 90.0 million rubles (increase from 110 million rubles to 200 million rubles to cover risks, considering the growth of the volume of transactions in currency futures and the growth of open positions in this instrument);
- deductions to the development fund: 213.936 million rubles.
The meeting re-appointed PricewaterhouseCoopers Audit auditor of the MICEX till the next annual general meeting of stockholders.
The meeting elected the new composition of the MICEX Exchange Council till the next annual general meeting of stockholders. The MICEX Exchange Council is composed of 14 people:
- Viktor Agafonov (Director of the Bank of Russia’s Department for the Provision and Control of Operations in Financial Markets)
- Alexei Akinshin (Deputy President-Chairman of the Board of Vneshtorgbank)
- Andrei Golikov (Director of the Treasury – Director of the Office for Operations in Money Markets of Sberbank’s Treasury)
- Nadezhda Ivanova (Director of the Combined Economic Department of the Bank of Russia)
- Vasili Kirpichev (Deputy Chairman of Vneshtorgbank)
- Konstantin Korishchenko (Deputy Chairman of the Bank of Russia)
- Sergei Koshelenko (Deputy Chairman of the Board of Rosbank)
- Nina Kukuruzova (Advisor to Chairman of the Board, Chairperson of the Supervisory Council of Bank St.Petersburg)
- Sergei Lykov (Senior Vice-President, member of the Board of Eurofinance Mosnarbank)
- Alexander Potemkin (the MICEX Chief Executive Officer)
- Alexander Sobol (Deputy Chairman of the Board of Gazprombank)
- Sergei Shvetsov (Director of the Department for Operations in Financial Markets of the Bank of Russia)
- Kirill Shershun (First Deputy Chairman of Tsentrocredit Bank)
- Andrei Yumatov (Genaral Manager, head of the Office for Financial Markets of International Moscow Bank)
The meeting discussed the results of the MICEX work in the reporting year and noted that in 2004 the MICEX was developing in the conditions of positive trends in the Russian economy, which was reflected in the good results of the exchange’s work. The MICEX continues to play a key role in the national system of exchange trade, which is comprised of eight main regional financial centers of Russia. The total volume of trading on the MICEX grew 1.9 over 2003 and reached the record level of almost 16 trillion rubles (555.4 billion US dollars). The daily average turnover increased almost twofold to 64 billion rubles (2.2 billion dollars). These impressive results make the MICEX one of world leading exchanges.
According to the MICEX CEO Alexander Potemkin, the Exchange’s achievements were a result of the intensive development of all sectors of the exchange market and the implementation of such large-scale projects as:
- combining the UTS and SELT into a unified trading session, which completed the formation of a single national currency market in Russia;
- establishing the MICEX Stock Exchange, where as at 11 January 2005 trading began in all corporate securities which had previously traded in the MICEX Stock Market Section;
- admission to trading in the Government Securities Section of new instruments: the RF eurobonds, OGVZ of 1999 issue, bonds of the Bank of Russia and bonds of Moscow city, included into the list of the Bank of Russia’s lombard operations, and the launch of the exchange money market, which enabled to conclude deposit transactions of the Bank of Russia with lending institutions using the MICEX System of electronic trading;
- revival of the exchange derivatives market.
- improve the settlement and depositary service of the exchange and the over-the-counter market;
- establish a clearing organization within the MICEX Group;
- enhance the marketing and customer service component in the work of the Group;
- develop the exchange market of euro/ruble;
- develop the market of derivative financial instruments (options, interest rate derivatives, derivative instruments on stock assets).
