The recent merger of the Micex and RTS stock exchanges in Russia will consolidate trading on Russian derivatives markets into a single exchange. Some believe the deal creates a platform that will give the country’s derivatives markets greater credibility and more global clout. But not all market participants are convinced such benefits will ever be realised.
On June 29, 2011, Russia’s two main stock
exchanges, Micex and RTS, confirmed what months of rumours had
anticipated with the announcement they were to merge. The deal
was heralded as representing the start of creating a globally
recognised exchange infrastructure in Russia able to compete
with some of the most established financial centres in the
world by 2020. But not all market participants are convinced
this will happen.
Terms of the deal
Under the terms of the deal, Micex will buy RTS shares from
its stakeholders – 35% in the form of cash and 65%
will be given as shares in the newly merged exchange. The share
swap rate was set at 1:3 and based on Micex shares being valued
at 103.5 billion rubles ($3.7bn) and RTS shares, including
preferred shares, being valued at 34.5 billion rubles.
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