The MICEX stockholders discussed the results of the Exchange’s financial and economic performance, adopted the balance sheet, the statement of financial results and the profit and loss statement. According to the MICEX reports, prepared under Russian standards, in 2005, the Exchange’s net profit grew 1.43 times to 731.652 million rubles (in 2004: 512.234 million rubles). Stockholders decided to distribute the net profit in the following way:
- dividends: 73.165 million rubles (656.69 rubles per 1 common registered share);
- payments to special-purpose funds (the guarantee fund for clearing on the securities market, the guarantee fund for clearing on the currency market, the reserve fund used to cover risks connected with operations in the MICEX Derivatives Market Section, the guarantee fund for clearing on the derivatives market (stock derivatives) and the development fund): 658.487 million rubles.
Stockholders decided to raise the MICEX authorized capital to 1154.150 million rubles (at present: 807.905 million rubles) by increasing from 7000 to 10000 rubles the face value of common registered shares, distributed before. Deloitte & Touche CIS was appointed the MICEX auditor till the next annual general stockholders’ meeting.
Stockholders elected the Board of the MICEX (14 people), which will work till the next annual general stockholders’ meeting. The Board is comprised of:
At its sitting, held immediately after the stockholders’ meeting, the Board of the MICEX reelected Konstantin Korishchenko (the Bank of Russia) Chairman of the Board. Sergei Lykov (Vnesheconombank) was elected Deputy Chairman of the Board.
Stockholders elected the following people members of the MICEX Auditing Committee till the next annual general meeting:
- Svetlana Kiselyova (Head of the Internal Audit Service of International Moscow Bank),
- Tatyana Sannikova (Deputy Director of the Bank of Russia’s Department for Provision and Control of Operations on Financial Markets),
- Igor Turuyev (Vneshtorgbank’s Senior Vice-President and Head of Internal Control Department),
- Vyacheslav Ulupov (Director of Vnesheconombank’s Internal Control and Audit Department),
- Oleg Chistyakov (Deputy Director of Sberbank’s Department for Internal Control, Inspections and Audit).
The meeting discussed the results of the MICEX’s performance in 2005 and stated that the total volume of trading reached in 2005 enables the MICEX to rank with leading world exchanges. In 2005, the total volume of trading on all markets of the MICEX Group amounted to a record 26.3 trillion rubles (925.1 billion US dollars), 1.7 times more than in 2004 (15.8 trillion rubles or 548.5 billion dollars).
Correspondingly, over the last year, the average daily volume of transactions within the MICEX Group grew to 106.3 billion rubles (3.7 billion dollars). During the first four months of 2006, it grew to 172.6 billion rubles (6.2 billion dollars). These results were achieved thanks to the rapid development of all sectors of the market: the currency market (growth: 1.7 times), the corporate securities market (growth: 1.5 times), the government securities market (growth: 2.1 times) and the derivatives market (growth: 14.3 times).
The MICEX President Alexander Potemkin noted in his report that the Exchange had achieved these impressive results thanks to the intensive development of all sectors of the market and the successful implementation of a number of large-scale projects:
- the launch of the MICEX Stock Exchange, which has become Russia’s leading floor by the volume of trading in corporate, municipal and regional securities;
- the launch of trading in Gazprom shares on the MICEX Stock Exchange;
- the establishment of the National Clearing Center within the MICEX Group. The NCC organizes settlements and clearing for deals made on the MICEX orderly markets.
- the development of the euro market with its up-to-date trading procedures.
Speaking about the strategy of the MICEX Group’s development, Alexander Potemkin said that the MICEX’s long-term goal was becoming the nucleus of a universal infrastructure Group, based on a top-level soft- and hardware platform. Responding to world trends and tasks facing the development of the Russian financial market’s infrastructure, the MICEX intends to focus on the following areas:
- the improvement of the settlement and depository service of the exchange and the OTC markets;
- the work of the National Clearing Center; transfer of the main sectors of the market to the NCC for service;
- the improvement of the procedures of settlements on the currency market; the development of the euro/ruble market;
- the development of the money market, including the market of inter-bank loans;
- the development of the market of derivative financial instruments (options, interest rate derivatives on stock assets);
- the development of the market of derivative instruments on main commodities, including fuels and agricultural products;
- the enhancement of marketing efforts and client service in the work of the Group.
