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Trading in foreign stocks

Moscow Exchange launched trading in international equities with settlement in RUB on 24 August 2020. The securities are traded in the main and after-hours trading sessions.

On 27 September 2021, Moscow Exchange started trading international shares with settlement in USD.

A security will trade in USD and RUB under the same ticker.

The advantages of trading international shares on Moscow Exchange:

  • Country and currency diversification opportunities allow private investors to build their portfolios with the greatest comfort.
  • Liquidity for foreign securities on Moscow Exchange is provided by market makers who are the leading Russian brokerage firms.
  • International shares with settlement in USD are traded within the robust infrastructure of Moscow Exchange which includes a qualified central counterparty (NCC) and central securities depository (NSD).
  • In September 2021, NCC was granted the status of Qualified Derivatives Dealer (QDD) by the US tax regulator. QDD status allows Moscow Exchange to facilitate trading in US securities for banks and brokers, as well as on the Money Market. Professional market participants can provide margin trading opportunities to their clients.
  • NCC accepts international securities as collateral for trades executed on MOEX’s markets.
  • Dividends will be set in the currency of the issuer, i.e. in USD for American securities.
  • Russian regulation allows Russian investors to purchase instruments on global financial markets, however servicing trades outside the Russian legal framework exposes investors to risks.
  • Current regulation on "complex instruments" available to unqualified investors allows unqualified investors to purchase international securities admitted to trading on the Russian exchange that are included in indices approved by the Bank of Russia. Moscow Exchange provides the appropriate marking of instruments to Trading Members.

 

Main features:

  1. Which instruments are admitted to trading?
  2. Trading hours and trading calendar specifics
  3. CCP NCC risk parameters, margin requirements, margin trading
  4. Trading modes, order types
  5. Clearing and settlement
  6. Lot size, tick
  7. Pricing
  8. Fee
  9. Are any changes to the reports expected following the launch of trading in foreign stocks?
  10. OTC reporting
  11. Dividends, record dates
  12. Taxation
  13. Can one purchase foreign stocks using the Individual Investment Account? Does the long-term ownership benefit apply?
  14. Risks associated with purchasing foreign securities