/kremlin--saint-basil-s-cathedral--and-red-square--moscow--russia-1143351798-c1fb0c4aa7a24f8aafefc873627f2637.jpg)
MOEX is the Moscow Exchange and index that tracks the performance of the 50 largest and most liquid stocks across 10 sectors in Russia. Moscow Exchange was established on Dec. 19, 2011, after merging the two largest Moscow exchanges, the Moscow Interbank Currency Exchange (MICEX) and the Russian Trading System (RTS). MOEX is also known as MICEX-RTS.
MOEX facilitates trades in equities, bonds, derivatives, foreign exchange (forex), money markets, and precious metals. It is also the central securities depository and Russia’s largest clearinghouse.
MOEX is also a capitalization-weighted composite index, which means that companies with larger market capitalization will constitute a larger percentage of its total value. Some of the top holdings are Gazprom (GAZP.ME), an oil and gas exploration and development company; Sberbank (SBER.ME), a state-owned banking and financial services company; Sberbank P (SBERP.ME), a commercial bank that serves individual and corporate clients; Rosneft (ROSN.ME), a state-controlled company that extracts, produces, refines, and sells petroleum and natural gas; and Novatek (NVTK.ME), the largest independent company that explores, produces, and markets natural gas in Russia.
Key Takeaways
- MOEX is the Moscow Exchange and composite index that tracks the performance of the 50 largest and most liquid stocks in Russia.
- It was established by merging the Moscow Interbank Currency Exchange (MICEX) and the Russian Trading System (RTS).
- The exchange is also Russia’s central securities depository and its largest clearinghouse.
IPO
MOEX went public after an initial public offering (IPO) on Feb 15, 2013, that helped it raise 15 million rubles, or $400 million. As of the company’s 2020 annual report, its largest holders include the Central Bank of Russia, Sberbank, Vnesheconombank, and European Bank for Reconstruction and Development. In the United States, Capital Research and Management Company holds a significant share of MOEX.
Components
Stock market: MOEX facilitates trading in Russian and foreign shares, depository receipts, mutual fund units, and other equities-based trades.
Debt market: MOEX permits trades in OFZs (issued by the Russian government), regional and municipal bonds, Russian corporate bonds, and mortgage-backed securities.
Precious metals: Trading in precious metals occurs through the Foreign Exchange Market and the Precious Metals Market of the MOEX.
Money market: Repurchase agreements through a central clearing counterparty allow banks, brokerage firms, and non-financial institutions to participate in this segment of the MOEX.
Standardized derivatives: All standardized derivatives transactions have to be cleared by a central counterparty.
Foreign issuers can list their securities on MOEX either through direct access or through Russian depository receipts. On Aug. 24, 2020, international securities could trade on MOEX for settlement in rubles. On Sept. 27, 2021, settlement in USD became available after the exchange became a Qualified Derivatives Dealer as per US tax regulations.
On Feb. 24, 2022, at 8:05 AM (Moscow), MOEX suspended trading in all its markets until further notice as the Russian-Ukrainian conflict escalated.
However, less than two hours later, the market announced it would resume trading at 10:00 AM.
As of Feb. 25, 2022, the Moscow Exchange is still trading.
What functions does MOEX support?
MOEX is an exchange for trading in securities, derivatives, forex and money market instruments. It is also a depository and settlement service for in-exchange and OTC markets. Its clearing service uses a central counter party.
Where is MOEX headquartered?
MOEX has its corporate office in Moscow, Russia.
How many issuers offer securities on MOEX?
Over 700 issuers offer securities for trading in MOEX’s equity and bond markets.
