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50-576: The Moscow Exchange ( MOEX ; Russian: Московская биржа , romanized : Moskovskaya birzha , IPA: [mɐˈskofskəjə ˈbʲirʐə] ) is the largest exchange in Russia, operating trading markets in equities, bonds, derivatives, the foreign exchange market , money markets , and precious metals. The Moscow Exchange also operates Russia's central securities depository , the National Settlement Depository (NSD), and

100-442: A native Russian keyboard layout ( JCUKEN ). In the latter case, they would type using a system of transliteration fitted for their keyboard layout , such as for English QWERTY keyboards, and then use an automated tool to convert the text into Cyrillic. There are a number of distinct and competing standards for the romanization of Russian Cyrillic , with none of them having received much popularity, and, in reality, transliteration

150-522: A 5 yr TIPS), the adjusted principal of the fixed income would rise from 100 to 103.88 and then the real yield would be applied to the adjusted principal, meaning 103.88 x 1.0261, which equals 106.5913; giving a total return of 6.5913%. TIPS moderately outperform conventional US Treasuries, which yielded just 5.05% for a one-year bill on October 19, 2006. Fixed income derivatives include interest rate derivatives and credit derivatives . Often inflation derivatives are also included into this definition. There

200-727: A Latin alphabet for the Russian language was discussed in 1929–30 during the campaign of latinisation of the languages of the USSR , when a special commission was created to propose a latinisation system for Russian. The letters of the Latin script are named in Russian as following (and are borrowed from French and/or German ): Fixed income For a company to grow its business, it often must raise money – for example, to finance an acquisition; buy equipment or land, or invest in new product development. The terms on which investors will finance

250-670: A fixed income ( defined benefit as contrasted with defined contribution ). When pensioners or retirees are dependent on their pension (whether a private-sector one , a public-sector one , or both) as their dominant source of income, the term "fixed income" can also imply that they have relatively limited discretionary income or have little financial freedom to make large or discretionary expenditures. Governments issue government bonds in their own currency and sovereign bonds in foreign currencies. State and local governments issue municipal bonds to finance projects or other major spending initiatives. Debt issued by government-backed agencies

300-399: A principal basis. The term "fixed" in "fixed income" refers to both the schedule of obligatory payments and the amount. "Fixed income securities" can be distinguished from inflation-indexed bonds , variable-interest rate notes, and the like. If an issuer misses a payment on fixed income security, the issuer is in default , and depending on the relevant law and the structure of the security,

350-524: A specific price index. The most common examples are US Treasury Inflation Protected Securities (TIPS) and UK Index Linked Gilts . The interest and principal repayments under this type of bond are adjusted in line with a Consumer Price Index (in the US this is the CPI-U for urban consumers). This means that these bonds are guaranteed to outperform the inflation rate (unless (a) the market price has increased so that

400-411: A total of approximately RUB 200 bln. On the fixed income side, more than 400 bond issues were placed, raising more than RUB 3.4 trillion for issuers. Moscow Exchange includes shares of many of Russia's largest companies, including Gazprom, Sberbank, Rosneft, Lukoil and VTB. Global investment banks began to provide their clients with DMA to the Russian market in 2013. As a result of regulatory changes,

450-759: A variety of factors, such as current short-term interest rates, e.g. base rates set by central banks such as the US Federal Reserve , the Bank of England in the UK, and the Euro Zone ECB . If the coupon on the bond is lower than the yield, then its price will be below the par value, and vice versa. In buying a bond, one is buying a set of cash flows, which are discounted according to the buyer's perception of how interest and exchange rates will move over its life. Supply and demand affect prices, especially in

500-590: Is Russia's largest clearing center and is the Central Counterparty (CCP) across all Moscow Exchange markets. In reaction to the 2022 Russian invasion of Ukraine, the European Association of CCP Clearing Houses (EACH) suspended National Clearing Centre from EACH membership. 55°45′19″N 37°36′22″E  /  55.75528°N 37.60611°E  / 55.75528; 37.60611 Romanization of Russian The romanization of

550-460: Is called an agency bond . Companies can issue a corporate bond or obtain money from a bank through a corporate loan. Preferred stocks share some of the characteristics of fixed interest bonds. Securitized bank lending (e.g. credit card debt, car loans or mortgages) can be structured into other types of fixed income products such as ABS – asset-backed securities which can be traded over-the-counter just like corporate and government bonds. Some of

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600-597: Is often carried out without any consistent standards. Scientific transliteration, also known as the International Scholarly System , is a system that has been used in linguistics since the 19th century. It is based on the Czech alphabet and formed the basis of the GOST and ISO systems. OST 8483 was the first Soviet standard on romanization of Russian, introduced on 16 October 1935. Developed by

650-706: Is the main system of the Oxford University Press, and a variation was used by the British Library to catalogue publications acquired up to 1975. The Library of Congress system (ALA-LC) is used for newer acquisitions. The BGN/PCGN system is relatively intuitive for Anglophones to read and pronounce. In many publications, a simplified form of the system is used to render English versions of Russian names, typically converting ë to yo , simplifying -iy and -yy endings to -y , and omitting apostrophes for ъ and ь . It can be rendered using only

700-761: The European Central Securities Depositories Association (ECSDA) suspended NSD from membership in the association. In addition, the European Union added NSD to its extended sanctions list , blocking NSD's accounts in euros and in Euroclear and Clearstream and making it impossible to service forex -denominated bonds issued by Russia and Russian companies, and the NSD suspended transactions in euros . Another Moscow Exchange subsidiary, National Clearing Centre (NCC),

750-723: The Futures Industry Association as of June 2014. Futures contracts on the U.S. dollar-Russian ruble were ranked first on 2014 in global liquidity, according to the Futures Industry Association. As of October 2014, 58 types of futures and 18 types of options were traded on the Exchange. Moscow Exchange introduced spot trading in gold and silver in 2013. It has postponed a launch of trade in platinum and palladium by end of October or early November 2014 in order to do additional testing of

800-751: The Moscow Interbank Currency Exchange (MICEX) and the Russian Trading System , hence the name "Moscow Exchange MICEX-RTS". Both organisations had been formed in the 1990s and were leading Russian exchanges for two decades with their MICEX Index and the RTS Index. The merger created a single entity to support Russia's plans to turn Moscow into an international financial centre. The exchange completed an initial public offering on 15 February 2013, raising 15 billion ₽ (approximately US$ 500 million). The offering, at

850-568: The Russian language (the transliteration of Russian text from the Cyrillic script into the Latin script ), aside from its primary use for including Russian names and words in text written in a Latin alphabet, is also essential for computer users to input Russian text who either do not have a keyboard or word processor set up for inputting Cyrillic, or else are not capable of typing rapidly using

900-478: The "real" yield is negative, which is the case in 2012 for many such UK bonds, or (b) the government or other issuer defaults on the bond). This allows investors of all types to preserve the purchasing power of their money even at times of high inflation. For example, assuming 3.88% inflation over the course of one year (just about the 56 year average inflation rate, through most of 2006), and a real yield of 2.61% (the fixed US Treasury real yield on October 19, 2006, for

950-456: The British Library since 1975. The formal, unambiguous version of the system for bibliographic cataloguing requires some diacritics, two-letter tie characters , and prime marks. The standard is also often adapted as a "simplified" or "modified Library of Congress system" for use in text for a non-specialized audience, omitting the special characters and diacritics, simplifying endings, and modifying iotated initials. British Standard 2979:1958

1000-647: The Central Bank to fully sell its stake in the exchange by 1 January 2016. In October 2018, Moscow Exchange launched the trading of deliverable gold futures on its Derivatives Market. Gold are delivered through precious metals market spot section. On 24 February 2022, following the start of the Russian invasion of Ukraine , the Moscow Exchange suspended trading until further notice. On 27 February, TASS reported that foreign clients were banned from selling any securities, effective immediately. On 4 March,

1050-455: The Exchange's infrastructure to implement monetary policy and provide liquidity to the market through repo transactions and FX swap transactions. For its domestic and international clients, including banks and corporates, Moscow Exchange offers products to manage liquidity and FX exposure. It is the centre of pricing for RUB and offers many RUB currency pairs, with tight spreads based on a transparent order book. All transactions (spot and swap) on

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1100-590: The FX market are centrally cleared by National Clearing Centre. In September 2014, average daily trading volume across all currency pairs was US$ 22.4 bln. While RUB/USD and RUB/EUR were the most traded currency pairs in 2014, Moscow Exchange also promoted trading in other currencies. In particular the RUB/CNY pair was well received by the market and trading in the GBP and HKD were launched in late 2014. Moscow Exchange as of 2014

1150-542: The Latin Alphabet is an adoption of ISO 9:1995 . It is the official standard of both Russia and the Commonwealth of Independent States (CIS). GOST 52535.1-2006 Identification cards. Machine readable travel documents. Part 1. Machine readable passports is an adoption of an ICAO standard for travel documents. It was used in Russian passports for a short period during 2010–2013 ( see below ). The standard

1200-565: The NSD, allowing international investors access to Russian bonds and equities, and giving Russian issuers access to non-Russian investors. In the wake of the 2022 Russian invasion of Ukraine , NSD blocked and froze all securities held in Euroclear's account at NSD, on March 1, 2022. NSD also froze payments on securities of Russian issuers from being made to non-Russian individuals and entities. On March 18, 2022, NSD's accounts at Euroclear and Clearstream (which together held €50tn of assets on behalf of investors) were blocked and frozen. In March 2022,

1250-685: The National Administration for Geodesy and Cartography at the USSR Council of Ministers , GOST 16876-71 has been in service since 1973. Replaced by GOST 7.79-2000. This standard is an equivalent of GOST 16876-71 and was adopted as an official standard of the COMECON . GOST 7.79-2000 System of Standards on Information, Librarianship, and Publishing–Rules for Transliteration of the Cyrillic Characters Using

1300-527: The act of short selling would be banned. On 26 March, it was announced that limited trading would be expanded to all stocks in a shortened four-hour session on 28 March. It remains unclear if, and if so when, normal operations will resume. The exchange was also targeted as part of international sanctions against Russia . On May 5, the United Kingdom revoked the exchange’s status as a UK "recognized stock exchange", thereby depriving securities traded on

1350-622: The basic letters and punctuation found on English-language keyboards: no diacritics or unusual letters are required, although the interpunct character (·) may be used to avoid ambiguity. This particular standard is part of the BGN/PCGN romanization system which was developed by the United States Board on Geographic Names and by the Permanent Committee on Geographical Names for British Official Use . The portion of

1400-477: The bond matures or is refinanced, the person will have their money returned to them. The major investors in fixed-income securities are institutional investors , such as pension plans, mutual funds, hedge funds, sovereign wealth funds, endowments, insurance companies and others. The main number which is used to assess the value of the bond is the gross redemption yield . This is defined such that if all future interest and principal repayments are discounted back to

1450-489: The case of market participants who are constrained in the investments they make. Insurance companies and pension funds usually have long term liabilities that they wish to hedge, which requires low risk, predictable cash flows, such as long dated government bonds. Some fixed-income securities, such as mortgage-backed securities, have unique characteristics, such as prepayments, which impact their pricing. There are also inflation-indexed bonds —fixed-income securities linked to

1500-424: The company will depend on the risk profile of the company. The company can give up equity by issuing stock or can promise to pay regular interest and repay the principal on the loan (bonds or bank loans). Fixed-income securities also trade differently than equities. Whereas equities, such as common stock, trade on exchanges or other established trading venues, many fixed-income securities trade over-the-counter on

1550-506: The country's largest clearing service provider , the National Clearing Centre. The exchange was formed in 2011 in a merger of the Moscow Interbank Currency Exchange and the Russian Trading System . At the end of 2023, the total trading volume on MOEX platforms reached 1.3 quadrillion rubles (about $ 14 trillion). The Moscow Exchange was established on 19 December 2011 by merging the two largest Moscow-based exchanges,

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1600-656: The exchange of certain UK tax reliefs. The Executive Board consists of five members: For 2020-2021 the board consisted of the following members: Moscow Exchange's shares are publicly traded under the ticker MOEX. As of December 2021 approximately 63% of shares were in the free float, while the following held blocks of shares: Central Bank of Russia (11.75%), Sberbank (9.9%), Vnesheconombank (8.4%), European Bank for Reconstruction and Development (6.1%) and US asset management firm Capital Research and Management Company, which manages more than $ 1.3 trillion globally in retirement assets. In total, US investors owned 36.8% of

1650-516: The exchange was suspended from the World Federation of Exchanges . On 18 March it was announced that trading in OFZ bonds should be resumed on 21 March. On 23 March, it was announced that trading of 33 ruble securities would resume on 24 March for residents of Russia, but that foreign investors were being restricted to repo deals and deals with derivative instruments. It was also announced that

1700-420: The international central securities depositories Euroclear and Clearstream offered clearance and settlement services for Russian stocks and bonds. In addition, Moscow Exchange focused on further developing the domestic investor base. The number of individuals with brokerage accounts on Moscow Exchange reached 17 million as of January 2022, which represented 11% of Russia’s population. The Bank of Russia uses

1750-496: The introduction of a dedicated Latin alphabet for writing the Russian language. Such an alphabet would not necessarily bind closely to the traditional Cyrillic orthography. The transition from Cyrillic to Latin has been proposed several times throughout history (especially during the Soviet era), but was never conducted on a large scale, except for informal romanizations in the computer era. The most serious possibility of adoption of

1800-484: The new system and the old one, citizens who wanted to retain the old version of a name's transliteration, especially one that had been in the old pre-2010 passport, could apply to the local migration office before they acquired a new passport. The standard was abandoned in 2013. In 2013, Order No. 320 of the Federal Migration Service of Russia came into force. It states that all personal names in

1850-509: The passports must be transliterated by using the ICAO system , which is published in Doc 9303 " Machine Readable Travel Documents, Part 3 ". The system differs from the GOST R 52535.1-2006 system in two things: ц is transliterated into ts (as in pre-2010 systems), ъ is transliterated into ie (a novelty). In a second sense, the romanization or Latinization of Russian may also indicate

1900-478: The payees may be able to force the issuer into bankruptcy . In contrast, if a company misses a quarterly dividend to stock (non-fixed-income) shareholders, there is no violation of any payment covenant and no default. The term "fixed income" is also applied to a person's income that does not vary materially over time. This can include income derived from any combination of (1) fixed-income investments such as bonds and preferred stocks or (2) pensions that guarantee

1950-405: The present, at an interest rate equal to the gross redemption yield (gross means pre-tax), then the discounted value is equal to the current market price of the bond (or the initial issue price if the bond is just being launched). Fixed income investments such as bonds and loans are generally priced as a credit spread above a low-risk reference rate, such as LIBOR or U.S. or German Government Bonds of

2000-446: The same duration. For example, if a 30-year mortgage denominated in US dollars has a gross redemption yield of 5% per annum and 30 year US Treasury Bonds have a gross redemption yield of 3% per annum (referred to as the risk free yield), the credit spread is 2% per annum (sometimes quoted as 200 basis points). The credit spread reflects the risk of default. Risk free interest rates are determined by market forces and vary over time, based on

2050-484: The shares of Moscow Exchange, and UK investors owned 10.1%. Additionally, 360,000 Russian retail investors owned MOEX shares. The Equity & Bond Market is a key platform for Russian businesses to raise capital and for domestic and international investors to access equity and debt investment opportunities. It is the main trading venue for Russian stocks as well as government, municipal, and corporate bonds. In 2013–2014, 16 companies placed stock via Moscow Exchange, raising

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2100-502: The system pertaining to the Russian language was adopted by BGN in 1944 and by PCGN in 1947. In Soviet international passports , transliteration was based on French rules but without diacritics and so all names were transliterated in a French-style system . In 1997, with the introduction of new Russian passports , a diacritic-free English-oriented system was established by the Russian Ministry of Internal Affairs , but

2150-447: The system was also abandoned in 2010. In 2006, GOST R 52535.1-2006 was adopted, which defines technical requirements and standards for Russian international passports and introduces its own system of transliteration. In 2010, the Federal Migration Service of Russia approved Order No. 26, stating that all personal names in the passports issued after 2010 must be transliterated using GOST R 52535.1-2006. Because of some differences between

2200-437: The terminology used in connection with these investments is: Investors in fixed-income securities are typically looking for a constant and secure return on their investment. For example, a retired person might like to receive a regular dependable payment to live on like gratuity, but not consume principal. This person can buy a bond with their money and use the coupon payment (the interest) as that regular dependable payment. When

2250-653: The time the largest ever held exclusively in Moscow, was more than twice oversubscribed and drew demand from institutional investors globally. The exchange's shares were included in the MSCI Russia Index in November 2013. In July 2014 the Central Bank of Russia , the largest shareholder of the exchange, completed the public sale of shares representing nearly 12% of the exchange. A Russian federal law requires

2300-513: The trading and clearing system. National Mercantile Exchange is Russia's platform for spot grain trading , as well as in deliverable futures on agricultural products. Since 2002, National Mercantile Exchange has been the platform by which the Russian state executes interventions in the grain market . Moscow Exchange subsidiary National Settlement Depository (NSD) was granted status as Russia's Central Securities Depository in 2012. Subsequently, Euroclear and Clearstream opened accounts with

2350-671: The use of diacritics) that faithfully represents the original and allows for reverse transliteration for Cyrillic text in any contemporary language. The UNGEGN , a Working Group of the United Nations , in 1987 recommended a romanization system for geographical names, which was based on the 1983 version of GOST 16876-71 . It may be found in some international cartographic products. American Library Association and Library of Congress (ALA-LC) romanization tables for Slavic alphabets are used in North American libraries and in

2400-442: Was one of the 10 largest exchange platforms for derivatives trading globally. The Derivatives Market facilitates trading of options contracts on, as well as futures contracts on indices, shares of both Russian and foreign companies, currency pairs, precious metals, energy and agricultural products. Futures on the RTS Index ranked sixth among the world's most actively traded derivatives on stock market indices according to data from

2450-519: Was substituted in 2013 by GOST R ISO/ IEC 7501-1-2013, which does not contain romanization, but directly refers to the ICAO romanization ( see below ). Names on street and road signs in the Soviet Union were romanized according to GOST 10807-78 (tables 17, 18), which was amended by newer Russian GOST R 52290-2004 (tables Г.4, Г.5), the romanizations in both the standards are practically identical. ISO/R 9, established in 1954 and updated in 1968,

2500-570: Was the adoption of the scientific transliteration by the International Organization for Standardization (ISO). It covers Russian and seven other Slavic languages. ISO 9:1995 is the current transliteration standard from ISO. It is based on its predecessor ISO/R 9:1968, which it deprecates; for Russian, the two are the same except in the treatment of five modern letters. ISO 9:1995 is the first language-independent, univocal system of one character for one character equivalents (by

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