Russias two main stock exchanges, MICEX and RTS, have signed a non-binding deal to merge.
MICEX is expected to acquire a 61.62% controlling stake of RTS with the intention of merging the two exchanges in July, according to statements by organizations with knowledge of the plans.
The countrys disjointed capital markets infrastructure has hindered investment there in recent years, with some even calling for the removal of the R from the hot BRIC markets. But at the same time Russia is working toward becoming an internationally recognized financial center. [See Russia refocuses on reforms, Global Custodian, Summer 2010]
About 80% of Russian equities are traded on the ruble-denominated MICEX, while the rest are traded on the dollar-denominated RTS, according to a statement on the merger by SEB.
The Financial Times reports that the Central Bank of Russia, which owns a 29.8% stake in the MICEX, will give up its share in an IPO some time in the next 2-3 years.
In November, the MICEX Settlement House and the National Depository Centre merged their clearing and settlement services in a step toward the creation of a Russian CSD.