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Western Stock Exchange Comes to Russia
One of the largest stock market operators on the world market, Deutsche Boerse AG, will open a Moscow office today. It is the first Western stock market to do so, and it is expected to provide plenty of competition to Russian stock markets and the London Stock Market. A DB spokesman told Kommersant that “The main goal of establishing the office is to provide Russian issuers access to the European capital market.”
Deutsche Boerse is an integrated stock market organization that provides services for electronic trading. It has been the operator of Frankfurter Wertpapierboerse, the Frankfurt stock exchange, since 1993. Its capitalization exceeds $23.54 billion, placing it in second place in the world after NYSE Euronext. World Federation of Exchanges data indicate that the capitalization of the companies traded on the exchange amounts to $1.64 trillion. Among those companies there are already 56 Russian companies, including Aeroflot, AvtoVAZ, Bashneft and Gazprom.
DB is the first Western stock exchange to come to Russia, although the American NASDAQ exchange bought Scandinavian stock exchange operator OMX last week. OMX is involved in a joint project to open a new exchange in St. Petersburg. Experts expect the German exchange to compete effectively with Russian exchange and the LSE. Placement of an initial public offering on the Frankfurt exchange costs 6-9 percent of the total volume of the placement, compared to 7-12 percent on the London exchange, research has shown. DB is entering the Russian market just as the LSE is considering tightening its rules.
DB presents an advantage over Russian exchanges because of its higher liquidity. However, its arrival is being greeted happily on the Russian exchanges. The presence of DB “will encourage improvements in the technology of exchange trading” in Russia, noted RTS deputy chairman Anna Trifonova.
www.kommersant.com
All the Article in Russian as of May 31, 2007
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