RTS Board System - what is it? Russian Trading System (RTS, RTS): history, organization of trading RTS, markets, RTS stock index Russian trading system RTS.
Russian trading system - Russian Trading Systems Stock Exchange
Russian trading system
RTS Group of Companies- a vertically integrated Russian exchange holding company that provides a full range of services for organizing trading in securities and derivative financial instruments.
The RTS Group includes: OJSC RTS, CJSC RTS Clearing Center, NPO RTS Clearing House (CJSC), CJSC Depository Clearing Company, OJSC Ukrainian Exchange (Ukraine, Kiev), LLC Ukrainian central counterparty" (Ukraine, Kiev), JSC Commodity Exchange "ETS" (Kazakhstan, Almaty), LLP "CC ETS" (Kazakhstan, Almaty), OJSC "St. Petersburg Exchange". The center of the RTS Group is the Open Joint Stock Company "Stock RTS exchange".
The RTS Stock Exchange is one of the leading and largest exchange (trading) platforms in the world. Despite the global financial crisis and its consequences in 2008-2010, a unique risk management structure, as well as high-quality control over transactions and the implementation of a policy to modernize trading technologies, allowed the RTS Group not to slow down its pace of development. Even in difficult economic conditions, the Exchange not only retained its current customers, but was also able to increase its market share.
Today, RTS occupies a leading position in the provision of a full range of exchange products and services in Russia, the CIS countries and Eastern Europe. The total number of RTS trading participants and their clients, through whom transactions are concluded, is almost 200 thousand around the world.
Thus, RTS was the first to begin calculating and publishing the Russian stock indicator - the RTS Index, the first to introduce the technology of the Central Counterparty for a transaction, combine clearing on the spot and derivatives markets, and also create a platform for trading securities without 100% deposit of assets with T+4 settlements .
In addition, RTS is the only exchange in Russia where trading takes place from 10:00 to 23:50 Moscow time. RTS's unique risk management system demonstrated its reliability during the 2008 crisis. RTS successfully transfers its experience and technologies for the development of financial markets in neighboring countries. And also RTS is the only Russian exchange that has created a subsidiary in Europe.
Based on the results of 2010, the FORTS futures and options market remains the largest platform for trading derivative financial instruments. It accounts for more than 95% of all transactions with fixed-term contracts in Russia. In the ranking of the independent association of derivatives exchanges Futures Industry Association, one of the largest in the world, FORTS is among the Top 10 leading global futures exchanges for the second year in a row.
In 2010, net profit amounted to 1,005 million rubles, which is 12% lower compared to 2009. The decrease in this indicator is due to the implementation in the previous year of a number of large one-time projects requiring significant operating expenses. This is the organization of a single head office for all companies of the RTS Group, strengthening the regional and foreign expansion of the exchange, and the implementation of an active policy for business development.
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September 1, 1995 Based on the quotes of 13 securities of the most capitalized Russian companies, the calculation of the main indicator of the Russian stock market - the RTS Index - began.
Summer 1998. The RTS Technical Center completed work on new software - RTS Plaza, as a result of which the RTS?2 terminals were replaced with a new workstation, and on September 14, 1998, on the basis of RTS Plaza, the merger of RTS and RTS?2 took place. The introduction of new software allowed RTS to increase the reliability of its operations and implement new principles for organizing trade.
October 2, 1998 The minimum value of the RTS Index in its entire history was recorded - 37.74 points.
August 2, 1999 Agreements with settlements in rubles in the RTS began to be concluded exclusively using the RTS Electronic Agreement Center on the terms of “delivery versus payment”.
November 1999 RTS implemented a joint project with the St. Petersburg Stock Exchange, within the framework of which partnership participants were able to trade shares of OAO Gazprom on the St. Petersburg stock exchange using the RTS Workstation.
December 1999 RTS began publishing dynamically updated information on the progress of trading with a 15-minute delay on its www-server for free access.
1999 Based on the results of 1999, the Russian stock market was recognized as the most profitable in the world, and the RTS Index, which grew by 197.4% over the year, according to Morgan Stanley Dean Witter, took first place in the world in terms of growth rates for the year.
February 15, 2001 The RTS Board information system was put into operation, intended for indicative quoting of securities not admitted to trading on the RTS.
October 2002 The RTS Stock Exchange joins the World Federation of Exchanges as a corresponding member of the association.
December 2003 The Board of Directors of NP RTS decided to create the Open Joint Stock Company "RTS Stock Exchange", which began operating in November 2004.
January 2005 The RTS Index began to be calculated in real time.
On May 17, 2005, the RTS Stock Exchange became a three-time nominee for the national competition “Stock Market Elite”: “Best project for the development of the stock market” (the RTS Exchange itself was awarded) and “Best project for introducing a new instrument to the market” (the winners in the nomination were Urgent FORTS market and the Project for the development of the “second tier” stock market).
August 3, 2005 Futures and options on the RTS Index were introduced into circulation on the RTS FORTS market. Since 2007, RTS Index futures have become the most liquid instrument of the Russian stock market.
November 15, 2005 Blue chip trading on the Classic Market has been switched to anonymous mode.
On May 25, 2006, RTS Index Futures was announced as the winner of the “Stock Market Elite” competition in the “Project to introduce a new instrument to the stock market” nomination.
June 8, 2006 For the first time in Russia, exchange trading in settled futures contracts for gold and Urals oil begins.
January 29, 2007 The RTS START platform for small and medium capitalization companies began operating.
April 5, 2007 The first delivery of physical goods in the history of Russia under futures contracts for diesel fuel took place.
May 23, 2007 Commodity futures of the RTS Stock Exchange were recognized as the winner of the 7th Stock Market Elite competition in the category “Best project to introduce a new instrument to the stock market.”
September 17, 2007 On the Classic Market (in the Electronic Trading Mode) and on the Exchange Market (in the Fully Secured Trading Mode), trading technology was introduced that involves making transactions with the Central Counterparty.
May 26, 2008 An evening trading session was introduced on the RTS, which made it possible to extend trading hours until 23:50 Moscow time.
September 16, 2008 The RTS Board information system was supplemented by the RTS Global project, which provides Russian investors with simple and effective access to foreign securities.
September 24, 2008 Clearing operations were consolidated on all markets of the RTS Group. From this moment on, all settlements are carried out by the RTS Clearing Center.
On December 10, 2008, the Regional Financial Center of Almaty (RFCA) and OJSC RTS Stock Exchange established the Joint Stock Company Commodity Exchange Eurasian Trading System (ETS, Almaty).
March 30, 2009 Trading began on the Eurasian Trading System commodity exchange (Kazakhstan, Almaty).
On May 22, 2009, Brent oil futures became a laureate of the "Stock Market Elite - 2008" competition in the category "Best project to introduce a new instrument to the stock market."
June 10, 2009 The FORTS trading system software was replaced, as a result of which its productivity was increased by 30%.
On June 18, 2009, RTS entered the Top 10 leading exchanges in the world for trading derivatives (Futures Industry Association).
On July 24, 2009, the delegation of JPMorgan Chase Bank (USA) presented the RTS Clearing House with the 2008 Quality Recognition Award in US Dollar Clearing.
August 28, 2009 The main trading session on the RTS on all markets (RTS Classica, RTS Standard, FORTS, T+0) was extended until 18:45 Moscow time.
November 2, 2009 Prices of shares traded on the RTS Standard market are included in the calculation of the RTS Index.
November 5, 2009 Futures "euro - US dollar" and "euro - ruble" were recognized as the "Best Innovative Products - 2009" in Eastern Europe (FOW magazine).
On December 2, 2009, RTS OJSC and St. Petersburg Exchange OJSC began implementing a joint project QUIN (Qualified INvestors), aimed at trading participants with the status of “qualified investor”.
On December 17, 2009, NAUFOR, NFA, MICEX and RTS signed an agreement on cooperation on the development of general principles of risk management when trading on stock exchanges and on the over-the-counter market, sample terms of agreements and standards for repo transactions, as well as in order to develop conditions for lending with securities papers.
RTS concentrates the funds of organizations and individuals, facilitating their effective distribution among various sectors of the domestic economy.
PTS is the largest and most actively used electronic exchange platform in Russia, accounting for about half of the total trading capacity on the Russian stock market.
The RTS stock exchange has the organizational form of an OJSC, and its shares are freely traded on the market.
A trading participant on the RTS Group markets can be a legal entity that has the appropriate licenses.
To carry out transactions with securities and provide intermediary services in the securities market, the following licenses are required:
- · License of the Federal Financial Markets Service (Federal Service for Financial Markets) of a professional participant in the securities market to carry out brokerage activities and/or,
- · License of the Federal Financial Markets Service of a professional participant in the securities market to carry out dealer activities and/or,
- · License of the Federal Financial Markets Service as a professional participant in the securities market to carry out securities management activities.
To carry out transactions with derivative financial instruments, you additionally need a license of an exchange intermediary to carry out futures and options transactions in exchange trading, issued by the Commodity Exchange Commission under the Federal Financial Markets Service of Russia.
To carry out transactions with foreign currency and provide intermediary services in the foreign exchange market, a license is required to carry out banking operations with funds in rubles and foreign currency.
In 1995, the RTS Group began trading securities on the classic RTS market. The basic principles of trading on the classical market are the ability to enter into transactions by choosing the currency, payment method and time. Trading is carried out on the basis of non-anonymous quotes without preliminary deposit of securities and funds, which makes it possible to organize trading on the widest possible range of securities.
Based on prices formed on the classical stock market, the RTS Index has been calculated since 1995, which has become (along with the MICEX Index) one of the main indicators of the Russian stock market. The RTS Index is calculated based on quotes for 50 securities of the most capitalized Russian companies.
RTS Group includes the following markets:
- RTS Standard
- RTS Classica
- · Futures and options market FORTS
- RTS Board
- RTS START
- RTS Global
RTS Standard is the most advanced stock market in Russia [source not specified 484 days], which embodies all modern world-class exchange technologies. It is aimed at a wide range of participants: professional stock market participants, institutional investors, hedge funds and private investors.
The trading mechanism in RTS Standard does not imply the presence of 100% of assets at the time of the transaction.
For example, the purchase of 10 securities at a price of 1,500 rubles will require the investor to conclude a transaction not 15,000 rubles, but 2,500-3,000 rubles.
Fulfillment of obligations occurs on the 4th day. At the same time, the execution of all transactions is guaranteed by the exchange as the Central Counterparty, which significantly reduces the risks of non-execution. Tradable instruments - 22 most liquid shares of Russian companies. The RTS Standard market implements a mechanism for trading stocks and derivatives (futures and options) in a single system
RTS Classica is the oldest organized securities market in Russia. Began work on July 5, 1995. At that time, trading participants who owned RTS terminals could post quotes for Russian shares and negotiate by telephone on the conclusion and execution of a transaction.
The FORTS derivatives market is the leading platform for trading futures and options in Russia and Eastern Europe, as well as one of the largest markets in the world for trading derivatives. According to data from one of the largest independent derivatives associations, the Futures Industry Association, for the first 2 months of 2009, the FORTS futures and options market is in 9th place in terms of trading volume among all derivatives exchanges in the world.
RTS Board is an information system of OJSC RTS Stock Exchange designed for indicative quoting of securities not admitted to trading on the RTS. The system was put into operation on February 15, 2001.
From the point of view of issuers, the RTS Board system is a simple and effective tool for initially increasing the liquidity of securities, the task of which is to draw the attention of investors to promising securities.
At the moment, RTS Board is the leader in Russia in terms of the number of securities listed there.
RTS Start is a segment of the main trading of the RTS exchange securities market, in which, in addition to the basic conditions, securities and their issuers are subject to a number of requirements aimed at protecting the rights and legitimate interests of investors. The issuer's securities included in the RTS Start segment are simultaneously admitted to trading on the RTS.
The project is intended to facilitate the admission of securities of small and medium capitalization issuers to trading during the placement and/or circulation process.
RTS Global is a new project that has no analogues in Russia. RTS Global allows Russian investors to gain simple and efficient access to foreign securities.
The formation of an over-the-counter Russian market for foreign securities is intended to significantly expand the opportunities of participants in the Russian stock market by qualitatively supplementing the investment portfolio with new financial instruments and opening up new promising financial markets for foreign issuers.
Electronic exchange trading is carried out on the basis of the RTS PLAZA Workstation, which is a complex of current guaranteed software and databases that has no analogues in Russia, installed on the personal computer of an Exchange member.
The exchange provides the technology to set quotes, acquire operational information on market conditions and conclude purchase and sale transactions for securities of Russian issuers in real time with settlements both in Russian rubles and in foreign currencies. More than 350 types of shares and bonds are admitted to circulation on the RTS.
The RTS exchange platform offers its participants a wide range of methods for executing transactions, including those based on the unique “delivery versus payment” technology, the wide capabilities of the Internet and new means of electronic document flow.
The RTS Technical Center (RTS TC) was created with the aim of guaranteeing the most reliable operation of the Russian Trading System. Although the general task of the RTS Trade Center is to provide technical services to the exchange and its members, the software products developed by the Technical Center are quite universal and can be successfully used not just on the stock market. Exchange trading systems developed by the RTS Technical Center are already operating in the CIS countries and Eastern Europe. The technical center is the developer of all the software on the basis of which electrical trading of securities takes place on the RTS Stock Exchange and automated settlements of transactions concluded on the RTS, including, in the RTS Plaza workstation, the principles of electrical document flow, I of the center for electrical contracts, clearing center used for the purpose of settlements for transactions concluded on the terms of “delivery versus payment”. The software created by the RTS Trading Center is a system that has no analogues in Russia, and is successfully used by the RTS Stock Exchange to organize trading in securities. Distinctive features of the system are high reliability and speed, real-time trading and settlements, functional separation of trading and clearing, methods of using inexpensive communication channels without loss of quality and speed principles. A high degree of integration of all software products makes it possible to provide convenient access to the entire RTS trading and settlement complex.
When developing trading and settlement systems, the RTS Trade Center is guided by the principle of straight-through transaction processing (STP) to ensure the best level of automation of all processes in the stock market. All new software products developed to expand the capabilities of market participants retain its basic basic principles of interface construction inherent in currently operating RTS systems. Moreover, when designing a software interface, consultations from psychologists and the fruits of research into the characteristics of traders’ activities are actively used. Before commissioning, all principles undergo thorough and comprehensive testing in a specialized department of the RTS shopping center.
The main goal of the RTS Group is the formation and development of a cost-effective self-regulatory infrastructure for the formation of prices for securities and financial instruments. By forming a developed financial market in our country, the RTS is helping Russia take a leading position in the global economy and become an integral part of the global financial system.
Website: www.moex.com (www.rts.ru www.rts.micex.ru)
RTS (Russian Trading System)– period of existence 1994 – 2011. In December 2011, it was merged with the MICEX (Moscow Interbank Currency Exchange) into the MICEX-RTS, since 2012, as a result of the merger, it was formed "Moscow Exchange".
At the beginning of 2000, OJSC RTS Stock Exchange, having received a stock exchange license, was renamed into a non-profit partnership (Non-Commercial Partnership for the Development of the RTS Financial Market) from a commercial partnership.
In January 2007, the RTS Exchange (Russian Trading System) became a member of the World Federation of Exchanges (WFE). In the letter, WFE Secretary General Thomas Krantz notes that RTS meets all the criteria that WFE sets for its members. The status of the RTS was increased due to the effective work of the exchange in creating reliable and strong relationships with world exchanges. The RTS Exchange now has the opportunity to more effectively build business plans in a common direction with the world's major trading platforms.
In July 2008, OJSC RTS Stock Exchange became an associated member of one of the world's leading independent derivatives organizations, the Futures Industry Association. The FIA leadership made this decision unanimously.
This RTS membership allows us to establish mutually beneficial cooperation with the world's main platforms on trading derivative financial instruments, as well as improving the quality and level of options and futures trading.
RTS
History of RTS
Shares of the RTS Stock Exchange are freely traded on the market, its organizational form is OJSC.
Trading in RTS securities began in 1995 on the classic RTS market. The basic principles of trading on the classical market were: to make transactions by choosing the settlement time, method and currency. Trading takes place on a non-anonymous basis without transferring securities for storage, which makes it possible to create trades on the maximum range of securities.
Since 1995, based on prices formed on the classical stock market, the RTS Index has been calculated, which has become (as well as the MICEX Index) one of the main indicators of the Russian stock market. The RTS Index is calculated using quotes from 50 securities of Russian companies that are the most capitalized.
The information system of the RTS Stock Exchange, this is the RTS Board system for indicative quotation of securities that were not admitted to trading on the RTS, launched in February 2001. It contains quotes from more than 1,000 issuers for 2,000 securities.
At the same time, in 2001, the RTS FORTS derivatives market was launched to trade derivative financial instruments. Various strategies provide investors with the opportunity to use options and futures: using RTS Index futures, effectively manage a portfolio of shares, conduct arbitrage, hedge risks, and carry out speculative operations.
Trading on the RTS exchange market began on November 23, 2004. Securities began to be traded in anonymous trading mode using the Order-Driven Market, this is the principle of a continuous double auction of counter orders, “delivery versus payment” with settlements in rubles and with 100% deposit of assets. The priority area of activity of the RTS Exchange is to increase the liquidity of the ruble segment in the securities market with the participation of a circle of professional market issuers and the development of the “second-tier” stock market.
In November 2005, an anonymous electronic trading mode was launched. The most liquid shares of the classic RTS market are traded here.
The RTS START platform began operating for mid- and small-capitalization companies in 2007.
In 2007, the RTS START platform for small and medium capitalization companies began operating.
In 2008, the RTS Global project began its work.
RTS also in May 2008 took the initiative to create Ukrainian Exchange OJSC, this is a joint project with Ukrainian securities traders. The goal was to have easier access to the Ukrainian stock market, as well as to push PFTS out of it. On March 26, 2009, the Ukrainian Exchange announced the opening of trading in securities. For the first time in Ukraine, the trading system of the exchange made it possible, using Internet trading systems, to take part in trading directly to individuals.
At the end of May 2008, an evening trading session was introduced on the RTS FORTS options and futures market. It ends at 18:45 Moscow time, followed by a clearing session. From 19.00 to 23.50 Moscow time. The evening session begins. At 14:00 Moscow time. settlements on transactions concluded during this period will be blown out.
In the city of Almaty, on March 26, 2009, trading began on the ETS Commodity Exchange Eurasian Trading System JSC. Initially, the first product that was put into circulation was third-class wheat. Now the UTS is trading in: wheat, rye, barley, sunflower seeds.
At the end of April 2009, trading started on RTS Standard (the new ruble stock market). Trading is carried out on the 20 most liquid securities of Russian issuers.
This article will focus only on the RTS markets, where trading is carried out in shares of companies - issuers of the 1st, 2nd, 3rd echelons, currencies, commodities and all derivative financial instruments (options and futures). There are seven trading platforms on the RTS exchange:
TRADING PLACES ON THE RTS EXCHANGE
RTS Classica- is the first Russian securities market, which began functioning back in 1995. On RTS Classica there is no possibility of preliminary deposit of securities, and participants in transactions can choose at their discretion both currencies and the date of the trading transaction. Although the absence of deposit contains certain risks, at the same time, this situation greatly facilitates the possibility of trading. RTS Classica currently offers 478 financial instruments: bonds, shares, investment shares.
The main reason for the formation of the exchange market was the desire to increase market liquidity, the introduction of ruble transactions with various financial instruments and the development of a liquid market for shares with low liquidity (second-tier shares).
As the RTS exchanges developed in 2004, to reduce risks, trading began on the RTS exchange market. Here, trading in financial instruments is carried out in anonymity mode using a “continuous double auction of counter orders” using the “delivery versus payment” technology with settlements in rubles and partial preliminary deposit of assets. In 2008, netting was launched without preliminary 100% deposit of assets during the trading process, which allowed market participants to reduce their costs.
OTC MARKET - RTS BOARD
The RTS Board exchange information system appeared in 2001. It listed shares of domestic and foreign issuing companies whose securities were not admitted to trading on the RTS exchange. Thus, any participant in the exchange market (investor, broker, trader) could obtain the necessary information about new shares and use this information in their analysis. Issuers, in turn, thereby increased the popularity of their shares and had the opportunity to enter the RTS exchange in the future. At this time, the RTS Board listing included about 2,000 shares of more than 1,000 issuing companies.
FORTS MARKET (Derivatives market - futures and options)
The RTS FORTS derivatives market was launched for the first time in 2001, and the evening trading session on the futures and options market was introduced in 2008. The main trading session of the RTS FORTS is at 18:45 Moscow time. ends, after which the clearing session takes place, and then, from 19.00 to 23.50, the evening trading session continues in Moscow. Settlements for all trade transactions concluded at this time are carried out at 14:00 the next day. The RTS derivatives market in Russia is the main trading platform for derivatives – options and futures. Despite its insignificant experience, according to the Futures Industry Association (FIA) in 2009, the RTS FORTS derivatives market ranked ninth worldwide in terms of trading volume among all similar exchanges.
Today, derivatives on the following underlying assets are traded on the FORTS market:
Securities (bonds and shares) of Russian issuing companies, as well as federal loan bonds
RTS Index and sectoral (industry) indices
Foreign currency
Commodities: gold, silver, Brent and Urals oil, diesel fuel, sugar, platinum, palladium
RTS MONEY
This is a currency trading platform. It was launched for the first time in 2003. Trading transactions on this exchange platform are carried out with different currencies through the RTS Money or REUTERS DEALING trading terminals. This trading platform is relatively underdeveloped, since it is extremely difficult to compete on equal terms with the Russian MICEX currency exchange. Only two currencies are traded on this exchange platform: USD/RUB and EUR/USD.
RTS START
RTS START trading platform was first launched in January 2007. It is designed for trading securities of mid- and small-capitalization issuing companies, which allows such companies to raise capital for their development and have an alternative to expensive bank loans. At the RTS START site, the requirements are significantly higher than the requirements at the main RTS site. This is done to protect the interests of investors and their legal rights. One example of a successful IPO in RTS START is the initial public offering of shares of Armada OJSC, in July 2007 - in six months the capitalization of this company increased by almost 134%.
RTS GLOBAL
This is an exchange platform that provides access to foreign securities to all Russian investors, and also allows investors and traders to enter into over-the-counter transactions. At the same time, prices are quoted through the RTS Board system. 1,760 shares from 1,284 issuers, including foreign issuers, are traded on this exchange platform.
RTS STANDARD
Trading on the ruble market of shares of the RTS exchange began for the first time in 2009. RTS Standard is a market that uses the most modern exchange trading technologies, which allows for exchange trading at the world level. Professional stock market traders, as well as hedge funds, institutional and private investors trade on this platform.
This market platform operates a mechanism for conducting trading transactions within four days (T+4) and not having 100% of assets during a trading transaction is not required, that is, trading is carried out using margin coverage, which is used in the FORTS market. This means that if a package of securities costs one hundred thousand rubles, at the time of purchasing the shares you may only need twenty 20,000 rubles, and the remaining amount is needed only on the fourth day.
Characteristics of the Standard RTS exchange market:
Settlements for trading operations within 4 days.
Share quotation and settlements for trading operations are carried out in Russian rubles.
Possibility of trading both securities and their derivatives (options and futures).
The RTS Exchange (Central Counterparty) reduces the risk of unfair trading.
As of July 12, 2010, securities of twenty-two largest Russian companies are traded on the RTS Global market.
IPO on RTS
In 2007, OJSC RTS Stock Exchange took first place in Russia and sixth place in the world in terms of the volume of IPOs (initial public offerings). Sixteen issuers chose RTS for the initial public offering of their shares, which ultimately managed to raise almost $16 billion.
In conclusion, it should be noted that in 2008 the RTS began to develop in the direction of expansion, and went to Ukraine, where the “Ukrainian Exchange” was created, on which securities of Ukrainian issuing companies are traded.
And in 2009, ETS JSC (“Commodity Exchange “Eurasian Trading System”) was organized in Kazakhstan, where agricultural products are traded - wheat, barley, rye, sunflower seeds. For clarity of all that has been said, I am posting characteristics of all RTS markets from the official website.
Investing in the RTS index: quote dynamics
RTS Index - what is it and how to earn money
RTS (Russian Trading System) was founded in the fall of 1995 as an alternative to the platform. In 2011, the MICEX and RTS exchanges merged into a single exchange platform, which became known as the Moscow Exchange. In this article I will talk about what the RTS index is, how to analyze the dynamics of quotes and whether it is worth investing in this instrument at all.
Considering the history and development of the index on the Russian stock market, we will touch upon the following issues:
Determination of the RTS index
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The RTS Index (code RTSI) is a kind of indicator of the situation on the stock market. Its value is determined taking into account all completed transactions on the exchange platform and reflects the general level of market value, which is called capitalization. It should be noted that such an indicator for a particular company is determined by multiplying the price of one share by the number in circulation.
Issuers and composition of the RTS index
The stock index of the Russian Trading System consists of a number of indicators, including: RTS-2, RTS Standart, RTS Siberia, as well as several industry indices. Calculations are made based on data relating to stock quotes of the 50 largest companies in Russia. In this case we are talking about Gazprom, Sberbank, Surgutneftegaz, Lukoil and other “giants”.
In order for shares of a particular company to be included in this list and, accordingly, in the RTS, two conditions must be met. Firstly, securities must be admitted to trading on this exchange platform (Moscow Exchange). Secondly, the market value of the company must be at least 0.5 percent of the total capitalization of all shares that are already included in the RTS index.
Change in RTS values
The RTS stock index appeared for the first time in September 1995, the index quotes were at the level of 100 points. Two years later, this figure was 570 points. Further dynamics of RTS showed that over the course of 19 years, the capitalization of the stock market of the Russian Federation has increased by more than 12 times. On the one hand, such results look more than positive and optimistic. The RTS index reached its peak value in the spring of 2008. But the financial crisis caused a significant decrease in the market value of most of the largest companies, as a result of which the RTS value dropped to below 600 points.
It should be noted that, despite the significant normalization of the economic situation in the country, the Russian stock market has not fully recovered. It is for this reason that the current capitalization of the country’s largest companies is almost half that which was recorded in 2008. The drop in the index was also influenced by a significant increase in the exchange rate of the US dollar against the ruble.
The RTS Index can be called a unique indicator of the Russian stock market, as well as the general economic situation. Research on changes in the RTS index allows you to get an idea of the current state of the stock market and make a decision on whether to sell or purchase shares.
Trading RTS futures
At the moment, RTS futures are the most popular and most liquid derivative (contract) on the Moscow Exchange. It can with full confidence be called the most popular financial instrument among the vast majority of traders and investors specializing in speculation on the Russian stock market.
Given the popularity of this asset, brokers in most cases provide the most favorable conditions for futures trading. In this case, we are talking about the minimum commission amount, as well as the smallest guaranteed security. A list of brokers providing access to the Moscow Exchange and futures trading on RTS can be found on the official website of the exchange moex.com.
Futures are a dispute between market participants, the topic of which is the movement of the value of shares of the 50 largest Russian companies. At the moment, this is the most used futures by traders, characterized by record liquidity. Its undeniable advantage is the increased leverage of up to 1:10.
In order to start trading futures on the RTSI index, you will first need to open an account on the exchange (see). Market participants analyze index quotes before making decisions and opening or closing positions. Profits and losses depend on whether the market participant wins the dispute. The futures size is the index value multiplied by 100. The ruble value is determined based on the fact that one point corresponds to 0.02 US dollars, that is:
Price (RUB) = RTS value in points X 0.02 X dollar exchange rate
It is worth emphasizing that trading this financial instrument is more than risky, especially for novice traders. All transactions are concluded on the so-called derivatives market. In other words, the key to successful trading will be having sufficient practical experience acquired in the long-term stock market.
RTSI index calculation
As I already said, the initial value of the index was conditionally equal to 100 points. Let us assume that on the specified date the total market value of all issuers was equal to 500 thousand US dollars, and on the day of settlement this figure increased to 850 thousand. As a result, the RTS index value will be: 850,000 / 500,000 x 1.0752559 x 100 = 183 points. In this formula, 1.0752559 is the value for which the correction is made.
The value of the index is determined based on data on the value of the shares included in its composition. This operation is repeated after 15 seconds, which provides information online. At the same time, the most informative for all market participants are the RTS values at the time of trading operations.
Below are the main indicators of the largest companies on the Moscow Exchange, which are used to calculate the index (moex.com/s772).
Every three months, the coefficients are recalculated, and a decision is made regarding the list of issuers. To minimize the risk of erroneous calculations, a control procedure is applied, which involves revising the results obtained. This happens if a technical failure has been detected, as well as in other non-standard situations that can have a significant impact on the calculations. In the first case, exchange specialists re-determine the index value as quickly as possible. In situations where recalculation is made, all information is published on the official website of the Moscow Exchange.
The RTS index represents the largest companies in the main domestic industries: banking and finance, oil and gas, electric power, chemicals, telecommunications, consumer goods and trade, air transport and information technology. Thanks to this composition of issuers, the index fully reflects the situation in the Russian economy and deservedly enjoys the attention of investors, not only as an independent investment instrument, but also as a market indicator.
In conclusion, I suggest watching yesterday’s RBC television program about the prospects for the RTSI index in 2016.
Profit to everyone!