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The currency market remains leader by the total value traded. Its share in the total exchange-based turnover of the MICEX Group is 53.4% (2005: 67.6%). During the first six months of 2006 the volume of exchange-based transactions in foreign currencies reached 432.5 billion dollars (11920 billion rubles), up 1.8 times on the same period of the last year (239.2 billion dollars). The largest volume was accounted for by operations in USD/RUB instruments: during the first six months of 2006, 427.8 billion dollars worth of transactions were made in these instruments. Participants’ interest in EUR/RUB instruments also grew considerably: 3.8 billion euros worth of transactions were made in this segment, 3.5 times more than in 2005.
During the first six months of 2006 the share of swaps in the structure of the exchange-based currency market continued to grow, their volume amounting to 158.1 billion dollars (up 3.2 times on the first six months of 2005). The volume of EUR/RUB swaps increased 43 times. To promote market participants’ activity in the swaps segment, the MICEX set, in February 2006, a single commission rate of 0.001%.
This year is marked by the rapid growth of liquidity of the corporate securities market on the MICEX Stock Exchange. During the first six months of 2006 the total value traded in non-government securities (equities, bonds, shares of mutual funds and repos) reached 8274 billion rubles (3007 billion US dollars), up 3.6 times on the same period of 2005 (2288 billion rubles). The share of operations in these instruments in the total turnover of the MICEX Group grew to 37.0% (2005: 23.1%).
During the first six months of 2006 the value traded in stocks on the MICEX Stock Exchange amounted to 6249 billion rubles (227.3 billion dollars), 4.6 times more than in the first six months of 2005. Most actively traded were shares in RAO UES (27.9%), Gazprom (26.7%), LUKoil (15.9%), Sberbank (6.7%), Norilsk Nickel (5.9%), Rostelecom (5.5%), Surgutneftegaz (4.3%), Mobile TeleSystems (1.8%), Uralsvyazinform (0.8%), Gazprom Oil (0.8%) and other issuers (3.8%). The volume of repos with stocks amounted to 1070 billion rubles (39 billion dollars), up 4.5 times on the first six months of 2005. Thanks to a favorable economic situation and the liberalization of the market for Gazprom equities, the capitalization of the market of equities traded on the MICEX SE reached 17185 billion rubles or 634.6 billion dollars (at the end of 2005: 258.6 billion dollars). The most important event of that period was the launch of trading in Gazprom equities on the MICEX Stock Exchange. The share of operations in Gazprom equities on the MICEX SE in the total exchange-based turnover of these equities on all Russian floors grew from 10% on the first day of trading (23.01.2006) to 80% in June 2006. The healthy situation on the Russian stock market is reflected in the MICEX Index, which grew by 31.7% to 1331.39 points from the beginning of the year (on 30.12.2005: 1011.00 points).
The market for corporate and regional bonds continues to grow rapidly; its share in the total exchange-based turnover has reached 9.1%. In the first six months of 2006 the value traded in corporate bonds amounted to 1489 billion rubles (54.0 billion dollars, up 2.6 times on the same period of 2005), regional bonds - 518 billion rubles (18.8 billion dollars, growth: 1.5 times) and municipal bonds - 16 billion rubles (570 million dollars). The volume of repos with bonds grew to 872 billion rubles (31.7 billion dollars, growth: 5.3 times).
Participants’ interest in shares of mutual funds is also growing. The volume of exchange-based trading in these instruments amounted to 1.32 billion rubles (48 million dollars, growth: 16.9 times over the first six months of 2005).
Since the beginning of 2006, the number of securities traded on the MICEX SE has grown by 18.9%, while the number of issuers whose securities are admitted to trading has grown by 18.7%. At present, 800 securities of 495 issuers are traded on the MICEX Stock Exchange. Of them 189 securities of 103 issuers are listed (put on quotation lists of different levels). In June 2006 the MICEX SE put into effect the new version of the Rules of Listing, Admission to Placement and Trading of Securities on the MICEX SE, which stipulates the establishment of the Innovative and Growth Companies Sector (IGC Sector) and the introduction of a new listing level - Quotation List “B”.
In the government securities market and the money market, in the first six months of 2006, the total value traded almost doubled and amounted to 1700 billion rubles or 61.5 billion dollars (the same period of 2005: 875 billion rubles), including transactions in GKO/OFZ, OBR, repos and the Bank of Russia’s deposit operations. The share of this segment in the total exchange-based turnover of the MICEX Group is 7.6%. Repos in the government securities market demonstrate the most intense growth: during the fist six months of 2006 their volume (including direct and reverse repos against the Bank of Russia and inter-dealer repos) reached 1131 billion rubles or 40.9 billion dollars, having grown 3.6 times against the same period of 2005. The Bank of Russia’s deposit operations with the use of the MICEX trading system continue to develop rapidly. During the fist six months of 2006 the total turnover of these operations exceeded 220 billion rubles or 8 billion dollars, up 2.5 times on the same period of 2005.
The stable growth of participants’ interest in the currency futures market promoted the growth of these instruments’ liquidity. During the fist six months of 2006 the volume of trading in the MICEX Derivatives Market Section reached 442 billion rubles or 16.1 billion dollars, up 9.6 times on the same period of 2005. In June 2006 a record-high monthly turnover of 125 billion rubles (over 4.6 million contracts) was registered. The volume of open positions in RUB/USD contract in the MICEX derivatives market amounted to 1.3 billion dollars (on 30.06.05: 0.5 billion dollars). A significant event that occurred in May 2006 was the launch of futures on the money market’s exchange rates.
In June 2006 the Bank of Russia registered National Clearing Center Bank (NCCB) as a lending institution. The state registration of NCCB, founded by the MICEX and the NDC, is important for further development of the MICEX Group’s structure. NCCB will provide clearing in exchange-based and OTC markets. This includes determining obligations of participants in clearing, offsetting these obligations and organizing the performance of obligations for transactions in compliance with the RF laws.
