The Exchange’s role in shaping the regulatory framework

Moscow Exchange aims to be a model company in the effective application of the principles established in the Corporate Governance Code for all issuers whose shares are listed on Moscow Exchange.

Moscow Exchange’s management has been actively involved in improving the regulatory framework in the field of corporate governance.

An important step in the development of the Russian stock market was the listing reform carried out by the Exchange, which simplified the system of quotation lists to bring it much closer to international standards, and increased the requirements for Russian issuers in terms of the quality of corporate governance.

The main innovations introduced through the listing reform include heightened requirements for Russian companies in terms of the quality of corporate governance in accordance with the new Corporate Governance Code adopted by the Bank of Russia in the spring of 2014. The first two years following the start of the reform are a transitional period during which issuers are to bring their securities and operations into line with the new requirements; after that period, the securities of any non-compliant issuers may be downgraded in listing level.

Jointly with market participants and the Regulator, Moscow Exchange developed a new system of corporate actions based on current international standards to ensure a clear framework for the participation of both Russian and international investors in corporate actions.