Moscow Exchange Group actively works to build constructive dialogue with Russian and foreign investors, market participants, current and potential issuers, regulators, and professional communities. It pursues this by engaging in direct communication through advisory bodies, working groups, investment conferences, forums, and specialized training events. These efforts help attract new investors to the Group’s markets, thereby expanding the client base, increasing the liquidity of financial markets, and bringing an inflow of investment to the Russian economy.
Many areas of Moscow Exchange’s activities involve interacting with government authorities; these relations are supervised by the Managing Director for Interaction with Issuers and Government Authorities.
The Moscow Exchange Council is the organization’s main consultative and advisory body. Its objective is to elaborate strategic proposals for developing the Russian financial market and to represent trade participants and consumers of Moscow Exchange’s services so that their needs can be fully considered.
The Moscow Exchange Council is made up of members of management of leading market participants, heads of self-regulated organizations, and representatives of management companies, investment banks, and the Central Bank of Russia.
The Exchange Council has the following competencies:
- elaborating proposals and providing recommendations to the Supervisory Board on how to improve Moscow Exchange Group’s development strategy;
- discussing priority projects and selecting at least one project to be used as a KPI for the management of Moscow Exchange, as well as providing relevant recommendations to the Supervisory Board or other competent management bodies;
- developing proposals to improve the exchange’s infrastructure and clearing technologies, and to attract market participants from new client segments and other areas and providing recommendations to the Supervisory Board or other competent bodies.
Moscow Exchange Group interacts with market participants via user committees. Through these committees, Moscow Exchange Group gathers feedback from clients on planned innovations to products and services, improves its exchange infrastructure, and prepares proposals for amending financial market regulations.
The user committees are advisory bodies made up of stakeholder representatives. Committee members give recommendations to management bodies of Moscow Exchange on its strategic development and operations in certain markets.
The user committees and the Exchange Council were created pursuant to Federal Law No. 325-FZ "On Organized Trading".
As of 31 December 2021, Moscow Exchange had the following user committees:
- Committees created pursuant to legislative requirements:
– Foreign Exchange Market Committee
– Derivatives Market Committee
– Repo and Securities Lending Committee
– Stock Exchange Committee
– Fixed-Income Securities Committee
– Deposit Market Committee
– Credit Market Committee
- Committees created at the initiative of Moscow Exchange:
– Exchange Council
– Settlements and Transaction Documentation Committee
– Collective Investment Market Committee
– Share Issuers Committee
– Bond Issuers Committee
– Primary Market Committee
– Index Committee
– Debt Market Indicators Committee
– Information Technology Committee
- Committees under the National Settlement Depository:
– Quality and Risk Committee
– Committee on Settlement and Depository Activities and Tariffs
– Committee on Interaction with Registrars and Depositories
– Central Depository Services Users Committee
– Repository Services Users Committee
Most of the committees feature members who are professional market participants: banks, brokers, investment companies, issuers, and non-finance companies. They are appointed for a term of one year. Members prepare proposals for amending legislation and improving the regulatory framework, and review issues of regulation of public circulation and issuance of securities, information disclosure and corporate governance. The committees also elaborate proposals for process solutions to improve the organization of exchange trading, clearing and settlements, and the expansion of tools and services.
For the convenience of everyone involved, Moscow Exchange publishes a monthly user committee digest containing a list of issues considered at meetings of the Exchange Council and the user committees, as well as the decisions taken. Information on the work of the committees is available to the public on the websites of Moscow Exchange and the National Settlement Depository.
