Actuality January 28, 2008

Moscow Interbank Currency Exchange (MICEX) decided to extend trading session for an hour – up to 19.00 (Moscow time). RTS (Russian Trading System) stock exchange can follow its example in February.

Market participants consider that increase of working interval of trading floors will allow investors to react operatively to foreign news.

The innovation is especially relevant because of crisis on world markets.

On MICEX was completed consideration of suggestions of market participants about the extension of trading session.

"We prepared a chart, supposing the extension of trades for one hour – up to 19.00", reported Mikhail Temnichenko, director of MICEX Stock Exchange department. According to him, during February all necessary documents will be directed to the Federal Financial Markets Service (FFMS). "On RTS stock exchange the final decision is not yet taken. Currently the decision about time of extension of trading session is discussed at the level of committees and will be approved by the board of directors.

The taken decision will be directed to FFMS in February", explained Roman Goryunov, the chairman of RTS board.

According to his opinion, RTS will be technologically ready to extend trades more than for one hour.

Possibility of extension of trading sessions on the Russian stock exchanges appeared this year with coming into force of new edition of FFMS order "About the rules of broker activity realization". From February, 1 the trades' organizers will be able to direct the suggestions to the service.

The sole condition at introduction of additional trading session is clearing on it with calculations "for tomorrow", i.e. together with the daily session of the next trading day.

At the moment trades on MICEX end at 17.45, on RTS – at 18.00.

Market participants consider the increase of time of trades feasible. "Trade after 18.00 will allow the Russian brokers to regain foreign news.

For example, at 18.00 sharp is usually issued the American statistics, able to influence substantially the mood of global stock exchanges", says Dmitry Lobanov, the chief of sales department of OLMA Investment Group.

"The longer trades are conducted in Russia, the more events and news investors can regain", explains Alexander Zakharov, the deputy head of broker management of IFC Metropol. The initiative about the extension of trading session is especially relevant because of crisis situation on world markets.

"In January we repeatedly ran into situations, at which the difference between the level of market closing and its opening the next day was 2-3%. Thus, relevant last evening prices for sale or buy of stocks are changing cardinally now, and many investors sustained losses", Alexander Zakharov says.

However, experts mark that the increase of trades' time can yield investment companies additional complications.

"The extension of trades means prolongation of working day of employees of some our subdivisions – traders, sales managers of stocks and back-office.

Moreover, the amount of our clients has increased almost twice for the last year, therefore for their full service it is necessary to attract additional specialists", says Sergey Rybakov, first Deputy Director General of Aton Investment Company.