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. Last Updated: 07/27/2016

RTS, RTS-2 to Unite in July, New Trade System on Trial




Russia's main share exchange, the Russian Trading System, and RTS-2, the system for less liquid shares, will merge by mid-July, RTS officials said Tuesday.


They also unveiled a new facility for big market participants, called a System for Anonymous Trading.


They hope the new system will allow RTS to attract business from traders now dealing through middlemen to ensure their large trades are made discreetly, thus avoiding unwanted movements in quotes. Intermediary brokers cost a about $50 per a deal.


Alexei Telyatnikov, RTS Technical Center director, said the software that will provide access to the new unified system will be ready at the beginning of June.


Once the new system is up and running in July, participants will use only one terminal -- the one they use now for trading on the RTS -- instead of two different terminals. The RTS terminal is more user-friendly, officials said.


RTS's listing currently includes 64 companies, while 158 companies trade on RTS-2. After the merger, the RTS index will include all the shares in the unified system and will be compiled on the basis of the methodology currently used.


Work on an RTS-3 system for third-tier shares, announced last September , has halted, RTS officials said. They said it would be revived when the market picks up.


However, the development of the RTS-3 system, which was to operate though the Internet, has contributed to the creation of the new System for Anonymous Trading, or SAT, which will also rely on Internet technology and is now on trial.


Although all members of RTS will have an access to the new system, the minimum lot for trading on SAT will be $500,000, which is expected to significantly limit the number of SAT users.


Transactions in the system will be possible only within mutual limits, which market participants will set before the trading session.