The emergence of the sole exchange, which would compete with international trading floors in London, New York and Tokyo, is “inevitable”, says Oleg Vyugin.
Photo: Alexander Miridonov
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RTS and MICEX May Soon Merge, Financial Markets Official
Russia’s two major stock exchanges, the RTS and the MICEX, may soon merge, the Russian financial markets chief said Tuesday. The new trading floor may be able to compete internationally, Russian authorities believe. Market watchers argue, though, that the emergence of a sole trading floor will monopolize the securities market and will eventually scare investors away.
Oleg Vyugin has made the first confirmation of plans to create a sole trading floor in Russia. The Federal Financial Markets Service explained in an interview with Kommersant that the two exchanges would soon have to merge or share the market with each of them engaged in different activities. The emergence of the sole exchange, which would compete with international trading floors in London, New York and Tokyo, is “inevitable”, according to Mr. Vyugin.
Russian experts say that the head of the financial markets watchdog would thus like to boost the Russian IPO market as most investors prefer to offer their stocks elsewhere.
Most market watchers oppose the idea of the sole trading floor, saying that the two exchanges may as well share the business otherwise the market will be monopolized.
Neither the RTS nor the MICEX would comment Oleg Vyugin’s statement Tuesday. RTS President Oleg Safonov told Kommersant that “this question is a prerogative of shareholders.”
www.kommersant.com
All the Article in Russian as of Feb. 07, 2007
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