Effective June 30th, 2008 OJSC "Russian Trading System" Stock Exchange" will implement its new electronic netting technology for settlement of CCP trades executed on the equity market.
Implementation of netting will result in reduced total transaction costs for market members and will allow for simplification of trades’ settlement raising the general market efficiency. Until now all broker/clearing member trades have been treated as separate trades. The new netting procedures will consolidate trades in the same contract into a single net position.
RTS is the only Russian exchange to adopt netting. It will significantly simplify the work of back-offices and will enable brokers to offer their clients more attractive services on the Russian equity market. Another important benefit of this innovation lies in growing competitiveness of brokers providing direct access to this trading mode to both local and international investors via Internet trading systems. Netting also reduces clearing costs.
At present 57 major Russian market players execute trades via a CCP on the RTS equity market.
"Introduction of netting is a benchmark in development of the Russian equity market infrastructure and creation of a global financial center in Moscow. This step will significantly improve the operating conditions for the RTS equity market players, and substantially reduce their funding costs", - said Roman Goryunov, RTS CEO.
Electronic trades executed in the period from June 30th, 2008 start to be settled via the new net-technology as of July 7th, 2008. However, trades executed before June 30th, 2008 will be settled via the current technology, i.e. "trade by trade". -- www.rts.ru
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