State-owned companies benchmarks
In 2015, Moscow Exchange launched a number of indicators designed for different types of investors, including two new equity benchmarks of state-owned companies: the MOEX State-Owned Companies Index and the MOEX Regulated Companies Index.
- The State-Owned Companies Index includes stocks of major Russian companies with a state ownership stake.
- The MOEX Regulated Companies Index includes stocks of companies included in the register of natural monopolies as approved by the Federal Antimonopoly Service.
The capitalisation-weighted indices are calculated by Moscow Exchange using a total return methodology (inclusive of dividends) based on on-exchange trading prices. Index calculation methodologies are revised annually based on the list of equities recommended by the Ministry of Economic Development and the Federal Agency for Management of Federal Property. The development and launch of new indices is one of the actions taken by the Russian Government to improve the quality and transparency of corporate governance at state-owned companies.
Bond indices of quotation lists
In addition to indices segmented by credit ratings assigned to bond issuers by leading rating agencies, Moscow Exchange has launched indices of corporate and municipal bonds segmented by the Exchange’s quotation lists.
Updates to indicators
The market indicator of repo with the CCP - MOEXREPO – has been updated to include Russian corporate bonds and Eurobonds and extend the range of trades used in calculations.
Also, the methodology for calculating indices of pension accrual assets has been updated to take into account new regulatory requirements.
The Exchange has developed a new analytical service that provides regular reports on the markets, trade structure and various analytical indicators. Moscow Exchange is the exclusive source of this data, which drives for demand for this service from large international customers. The research also involves academic researchers, and as a result MOEX expects its data to be used in publications in leading academic journals.
Securities and issuers database
2015 saw the launch of RU DATA, the master database for Russian securities and issuers, which brings together all available information on Russian issuers and their financial instruments for the first time. Another important focus in information services was the development of a system for assessing the fair value of financial instruments as part of the price-discovery centre.
Goals for 2016 include a revamp of the platform for calculating indices and indicators, which will elevate the distribution of index data to a qualitatively new level and improve the quality of services provided by the Exchange.
Moscow Exchange plans to create new indices and indicators and further develop existing products to take into account changes to the Russian financial market landscape. MOEX also plans to launch:
- equity indices of SMEs;
- an index of bonds included in the Bank of Russia’s Lombard List;
- total return indices;
- an updated zero-coupon yield curve of sovereign securities.
Moscow Exchange expects its benchmarks to become more widely used by international investors and financial market participants following their recognition early in 2016 as compliant with the standards of the International Organisation of Securities Commissions (IOSCO). An international audit of the Exchange’s benchmarks confirmed that they fully meet not only Russian but also international regulatory requirements and best practice, including IOSCO standards. The Exchange’s new index-management policy enshrines its commitment to employ best global benchmark calculation practices. Broader use of MOEX’s benchmarks will lead to greater liquidity on the Exchange’s markets and higher returns from the Exchange’s indexing business.
MOEX plans to broaden its offering of information products and create high-speed state-of-the-art data feeds for the most demanding algorithmic traders.