Strategy update

Moscow Exchange continues to improve the appeal and competitiveness of Russia’s financial market infrastructure, including for international investors. The Exchange is a member of the World Federation of Exchanges (WFE) and the Futures Industry Association (FIA), and has for years worked alongside leading global financial institutions and professional associations to develop financial services and joint exchange products.

For more than twenty years Moscow Exchange has engaged in dialogue with Shanghai Stock Exchange. In 2004 and 2009, the two exchanges signed agreements on cooperation in the development of financial services and the improvement of the organised securities markets of China and Russia.

In addition, since the launch of CNY/RUB trading in 2010, Moscow Exchange has been cooperating with the leading Chinese banks. In October 2014 during an official meeting of the Russian and Chinese heads of government an agreement was signed between Moscow Exchange and Bank of China expanding collaboration between the two nations’ financial markets. A delegation from Industrial and Commercial Bank of China paid an official visit to Moscow Exchange to discuss prospects for implementing new initiatives to provide services to market participants of both countries.

Since 2013, Moscow Exchange strengthened cooperation with Deutsche Börse, one of the world’s largest exchange groups. The partnership resulted in futures contracts on five leading German issuers trading on Moscow Exchange. Eurex Exchange, a unit of Deutsche Börse Group, is currently in the process of implementing the project to launch EUR/RUB and USD/RUB derivatives on its trading floor.

A cooperation agreement entered into between Moscow Exchange and NASDAQ OMX in 2013 involves pooling efforts to provide access to the capital markets through of Russian hi-tech companies on both trading floors, as well as conferences, workshops and presentations for technology companies and international investors.

In 2014, Moscow Exchange signed an agreement with Korea Exchange focused on cooperation in information technologies, improving financial market infrastructure, developing joint exchange products.

NCC Clearing Bank is a full member of the European Association of CCP Clearing Houses (EACH) and a member of the Global Association of Central Counterparties (CCP12). Both these organisations facilitate direct interaction with key central counterparties and serve as forums for discussion on major issues in the regulation of financial market infrastructure.

The NSD promotes cooperation within the Association of Eurasian Central Securities Depositories (AECSD), which aims to establish a common environment for depositories in CIS countries, and to integrate regional CSDs into the global settlement infrastructure.

In 2014, foreign nominee accounts were opened for the CSDs of Armenia and Kyrgyzstan, and a memorandum of understanding was signed with the CSD of Turkey. In October 2014, the NSD began assigning ISIN and CFI codes to Uzbek securities.

To become a part of the global post-trade system, the NSD also obtained FATCA compliance status from the US Internal Revenue Service and received a Global Intermediary Identification Number (GIIN). In addition, Deutsche Bank Trust Company Americas was added to the NSD’s list of correspondent banks.

Moscow Exchange is an active participant in major international exchange forums and conferences regarding the development of trading floor IT infrastructure. In April 2014, for example, an Exchange delegation attended TradeTech Europe in Paris, the world’s largest conference on electronic trading. During the year, representatives of Moscow Exchange attended FX market events including FX Invest and EMFX in Singapore, Hong Kong, London and New York, as well as the FIA Derivatives Conferences held in London, Boca Raton and Chicago.

In May 2014, Moscow Exchange welcomed leaders of the world’s largest exchanges and international clearinghouses to Moscow for the 31st Annual World Federation of Exchanges (WFE)/International Options Market Association (IOMA) meeting. The annual conference brings together leaders from the world’s futures and options markets and derivatives clearing houses to discuss market and regulatory issues affecting the world’s derivatives landscape. It was the first time that Moscow had been chosen to host this industry agenda-setting event.

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