What Is MOEX?

NEWS ALERT March 24, 2022, 4:45 p.m. EST: Trading on the MOEX resumed in a limited capacity on Thursday after an unprecedented month-long closure. The exchange allowed 33 of the 50 components of the MOEX Russia Index to be traded. The index ended the day up 4.4%, propped up by bans on short selling and on foreigners selling equities.

MOEX can refer to two distinct concepts: the Moscow Exchange and the MOEX Russia Index.

The Moscow Exchange was established on Dec. 19, 2011, by merging Moscow’s two largest exchanges, the Moscow Interbank Currency Exchange (MICEX) and the Russian Trading System (RTS). MOEX is sometimes referred to as MICEX-RTS. MOEX is Russia’s largest exchange and facilitates trade in equities, bonds, derivatives, foreign exchange (forex), money markets, and precious metals. It also operates Russia’s central securities depository and the country’s largest clearinghouse.

The MOEX Russia Index, or IMOEX, is a stock index that tracks the performance of the 50 largest and most liquid stocks across 10 sectors in Russia. It is a capitalization-weighted composite index, which means that companies with larger market capitalization will constitute a larger percentage of the index’s value. Some of the top holdings are Gazprom (GAZP), an oil and gas exploration and development company; Sberbank (SBER), a state-owned banking and financial services company; Aeroflot (AFLT), Russia’s largest airline; Rosneft (ROSN), a state-controlled company that extracts, produces, refines, and sells petroleum and natural gas; and Novatek (NVTK), the largest independent company that explores, produces, and markets natural gas in Russia.

Below, we focus on the Moscow Exchange.

Key Takeaways

  • MOEX can refer to the Moscow Exchange, Russia’s largest exchange.
  • It may also refer to the MOEX Russia Index, a ruble-denominated composite index that tracks the performance of the 50 largest and most liquid stocks in Russia.
  • The Moscow Exchange was established by merging the Moscow Interbank Currency Exchange (MICEX) and the Russian Trading System (RTS).
  • The exchange is also Russia’s central securities depository and its largest clearinghouse.

MOEX IPO

MOEX went public after an initial public offering (IPO) on Feb 15, 2013, that helped it raise 15 million rubles, or $400 million. As of the company’s 2020 annual report, its largest holders include the Central Bank of Russia, Sberbank, Vnesheconombank, and European Bank for Reconstruction and Development. In the United States, Capital Research and Management Company holds a significant share of MOEX.

Operations

Stock market: MOEX facilitates trading in Russian and foreign shares, depository receipts, mutual fund units, and other equities-based trades.

Foreign issuers can list their securities on MOEX either through direct access or through Russian depository receipts. On Sept. 27, 2021, settlement in USD became available after the exchange became a Qualified Derivatives Dealer as per US tax regulations.

Debt market: MOEX permits trades in OFZs (issued by the Russian government), regional and municipal bonds, Russian corporate bonds, and mortgage-backed securities.

Precious metals: Trading in precious metals occurs through the Foreign Exchange Market and the Precious Metals Market of the MOEX.

Money market: Repurchase agreements through a central clearing counterparty allow banks, brokerage firms, and non-financial institutions to participate in this segment of the MOEX.

Standardized derivatives: All standardized derivatives transactions have to be cleared by a central counterparty.

What functions does MOEX support?

MOEX is an exchange for trading in securities, derivatives, forex and money market instruments. It is also a depository and settlement service for in-exchange and OTC markets. Its clearing service uses a central counter party.

Where is MOEX headquartered?

MOEX has its corporate office in Moscow, Russia.

How many issuers offer securities on MOEX?

Over 700 issuers offer securities for trading in MOEX’s equity and bond markets.



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