Requirements for inclusion on the list of securities of a foreign exchange investment fund

ETFs (Exchange Traded Funds) — securities of foreign investment funds related to collective investment scheme, created solely to invest publically raised capital based on proportionally allocated risk, the securities prospectus of which assumes (i) buyback of these securities at a price not substantially different from that determined by the net asset value; (ii) an exchange listing.

Basic listing requirements

  • Securities comply with the requirements of Article 51.1 of the Federal Law "On the securities market"
  • A foreign exchange investment fund undertakes to provide the Exchange with information about the securities for disclosure by the Exchange in accordance with Russian securities legislation
  • the estimated market value1 of the units (shares, participatory interests) in an exchange-traded investment fund proposed to be traded on the Exchange shall amount to an equivalent of not less than RUB 25 million
  • The securities are accepted for servicing by the settlement depositary
  • Other Russian legal requirements regarding securities and normative acts of the Bank of Russia

With the basic requirements complied, securities may be included on Level 3.

Requirements for ETF to be listed on Level 1 and 2

Requirements Level 1 Level 2

The volumes of trading in the securities conducted by market-makers of the foreign exchange-traded investment fund during the trading time (trading period, if provided for in the on-exchange trading rules) in each main trading session which, once achieved, releases the market-maker of its duty for that day*

OR

 


Not less than RUB 50 mln

 


Not less than RUB 30 mln

The period during which the foreign exchange-traded investment fund market-makers perform their duties* At least ¾ of the trading time (trading period, if provided for in the on-exchange trading rules), of each main trading session At least 65% of the trading time (trading period, if provided for in the on-exchange trading rules), of each main trading session

* These conditions must be set out in the agreement with the market-maker. It shall be possible not to meet the obligations of a market-maker for the securities of a foreign exchange-traded fund, but not more than for 3 business days a month.