New developments on the Moscow Exchange Market

The Russian market operator Moscow Exchange Group (MOEX), announced yesterday that development and construction company Etalon Group started trading Global Depository Receipts (GDRs) on Moscow Exchange’s Equity Market.

The start of the trading was marked by a ceremony attended by The Chairman of the Board of Directors of Etalon Group, Sergey Egorov, Ethalon’s CEO, Gennadiy Shcherbina, Chairman of Moscow Exchange’s Management Board, Yury Denisov and Ethalon’s CFO Kirill Bagachenko.

Yury Denisov, commented:

Yury Denisov

Yury Denisov

We are very pleased that a growing number of companies that already have listings on a foreign exchange have recognised the importance of an additional listing in Moscow. For Etalon Group this is an opportunity to expand its investor base and unlock additional demand for its shares, especially from private investors. This listing will enable domestic investors to diversify their portfolios with shares of a leading company in the promising and socially important construction sector. I wish Etalon Group success in this new page of its history as a Moscow-listed company.

Sergey Egorov, added:

Listing on Moscow Exchange is an important step for the Company in terms of improving the investment appeal of Etalon Group’s GDRs. Both international and Russian institutional investors value Moscow Exchange for its convenience and reliability. We are pleased that, starting today, a wide range of investors who were previously unable to acquire the Company’s GDRs on the London Stock Exchange will now be able to add securities from one of the largest companies in the Russian development market to their portfolios. In addition, access to Moscow Exchange enables us to be included in various stock indices, which we hope will contribute to further growth of Etalon Group’s share liquidity and market capitalisation.

Last week Moscow Exchange also announced the launch of natural gas futures. The market operator is starting trading in a cash-settled futures contract on natural gas as part of a strategy to create more investment opportunities and global commodity means for market participants from Russia and their clients.

The contract is 100 MMBtu (or 100 million British Thermal Units), it will be quoted in US Dollars per MMBtu, while trades will be carried out in Russian roubles. Seven contract series will be available immediately and futures series with settlements in March-September 2020 will be quoted in the beginning.

The contract will settle at the price of CME Group’s Henry Hub Natural Gas Futures’s price benchmark for trading natural gas.

Igor Marich, FX and Money Market Managing Director at Moscow Exchange, said:

Igor Marich

Igor Marich, MOEX

Commodity derivatives is the fastest growing segment of MOEX’s Derivatives Market with turnover having risen more than 30% to RUB 28 trillion in 2019. The launch of these natural gas futures is part of our strategy to accelerate the availability of global benchmarks for Russian investors.

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