Moscow Exchange (MOEX) has just announced that it has started trading in foreign equities. The exchange admitted 20 stocks from the S&P 500 Index.
Today, 19 stocks were made available for trading in the main and after-hours trading sessions, with Apple stock to be added on 7 September. The delayed launch is due to the upcoming Apple stock split.
MOEX expects the list of stocks to be expanded to 50 names in 4Q 2020. The exchange will add more new instruments in future.
Foreign stocks will be traded and settled in RUB within MOEX’s infrastructure. Dividends will be set in the currency of the issuer, i.e. in USD for U.S. securities.
Foreign stocks will be settled in a similar way to Russian securities, i.e. two days after the trade date (T+2) and without full collateral required. Risk parameters for foreign stocks are available on the Moscow Exchange website. Leading Russian brokerages will act as market makers to provide liquidity for the securities on MOEX.
MOEX recently reported its results for the second quarter of 2020, announcing record fee income from the Money Market and Depository & Settlement Services as well as strong performance by the Equities Market helped MOEX achieve all-time high F&C income for the third quarter in a row.
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