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Traders Ready for Foreign Securities
The amendments to the law “On the Securities Market” permitting the sale of foreign securities in Russia have not had their first reading in the State Duma yet, but market professionals are already preparing for their passage. The National Depositary Center reports that Russian companies have filed 7757 applications to perform operations with foreign securities, of which 2094 were approved.
Currently, Russian credit organizations can buy foreign financial instrument, but they have to keep them in depositaries with access to foreign markets. Brokerage companies must form overseas subsidiaries to deal in foreign securities. The new rules will make transactions with foreign instruments simpler and less costly. The cost of buying foreign securities now amounts to about 1 percent of the value of the securities.
The capitalization of the Russian financial market is expected to increase by $40-50 billion after the amendments are passed. About 1500 stocks and mutual funds and 700 securities are traded on the Russian market now. Observers say that there is a shortage of financial instruments on the Russian market. The volume of foreign securities on the Russian market may exceed those of domestic companies.
www.kommersant.com
All the Article in Russian as of Mar. 13, 2008
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