Shares of Russian issuers are now listed on two major exchanges
Trading is becoming more and more popular among Russians, which makes local trading platforms improve their functionality and provide more opportunities for users. If earlier the Moscow Stock Exchange offered shares of Russian issuers, now securities of foreign companies are traded here.
This innovation has turned the platforms of the capital and St. Petersburg into competitors. They try to become universal tools for trading activity, for which they change their specifics. The fact is that previously only the St. Petersburg Stock Exchange was engaged in shares of foreign companies.
However, the Moscow market decided to go further, and announced the possibility of trading with major corporations, including Apple, Facebook, Amazon, Microsoft and others. A total of about 100 company names are available on the exchange, which is included in the S&P 500 index, and their number is regularly increasing. Shares are available in roubles for purchase and dividends are paid in dollars.
However, the St. Petersburg site does not stand still either. Due to the competition, it decided to start trading shares of local companies. And she lowered tariffs to poach users from the Moscow Stock Exchange. Transactions in St. Petersburg are carried out in the best execution format, which is relevant even at an identical share price. In addition, the exchange offers favorable conditions for traders – the latter can count on the option of securities of the platform.
For a long time, the St. Petersburg Stock Exchange has not disclosed the new functionality. Initially, trading was carried out on the OTC market, although shares of the largest Russian companies were represented. The representatives of the market stated that they had only a listing and did not provide information about possible trading operations. And only recently this function became available.
At the moment, the site has more than 1300 shares of foreign companies, a few months ago were added securities of 52 corporations in Germany. The exchange plans to place another 400 shares in the near future.
When using the best execution option, the broker is required to fulfill all obligations to the client on terms favorable for him and on those recommendations that he makes before making the transaction. In addition, this format allows the St. Petersburg Stock Exchange to compete with the Moscow Stock Exchange, as the broker is required to provide the client with information on the peculiarities of buying and selling shares from one or another trading floor.
However, representatives of the capital exchange do not see how the activities of their “colleagues” can prevent liquidity or increase users. It should be noted that last year the number of traders on the Moscow market increased to 5.36 million people, with users followed in June.