Moscow Exchange launches platform for OTC trading in shares without listing
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On April 10, the Moscow Exchange will launch an OTC (Over-the-Counter) OTC platform for trading stocks without a listing. It will differ from the already existing MOEX Board OTC platform in a number of ways. OTC is expected to become a pre-IPO prototype.
At the initial stage, shares of seven companies that have not been listed on the stock exchange will be presented on the site, said Boris Blokhin, director of the stock market department of the Moscow Exchange. RBC. PJSC “Nitel”, PJSC “Krasnogorsk plant named after A.I. S.A. Zvereva, PJSC Udmurtneft, PJSC Obneftegazgeologia, PJSC Novoship, PJSC Ufaorgsintez, PJSC Fortum. The possibility of admitting several dozen companies before the end of the year is being considered. Moscow Exchange does not exclude the admission of foreign securities.
The MOEX Board now includes more than a thousand shares of Russian companies. In contrast, the OTS will work through a central counterparty (through the National Clearing Centre), and not directly between the seller and the buyer. MOEX Board is a system of indicative quotations, like a “bulletin board”, where the seller or buyer can change the price or refuse to deal, participants will submit offers to OTC rather than bids. “If you made an offer, then if there is a counter offer, the deal will be concluded,” Mr. Blokhin explained. Also, the pricing system will be different on the platforms – on the MOEX Board it is formed by the seller and the buyer, on the OTS – a large number of participants.
The Moscow Exchange believes that the shareholders of the companies admitted to the new platform are interested in trading their securities. They will be able to quickly sell them or buy them using the new service. Others will have the opportunity to purchase shares that were not available before. The platform will be available to Russian brokers, and only qualified investors will be able to trade.
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