Actuality February 14, 2008

According to Roman Goryunov, RTS (Russian Trading System) can open the representative office in Ukraine in the nearest months at the positive decision of the matter about project realization.

RTS stock exchange developed a new plan on entrance into the stock market of Ukraine. At support of local companies it is going to create PLC Ukrainian stock exchange in Kiev. In the opinion of market participants, this project can become an alternative to the main Ukrainian trading floor – PFTS stock exchange, if earlier another foreign floors will not enter the market.

RTS board of directors approved the strategy of the stock exchange on entering the Ukrainian stock market. "The decision was taken about creation of trading floor in Kiev – PLC Ukrainian stock exchange", told one of the members of RTS board of directors. Plans on entering Ukraine confirmed the chairman of the board of the Russian stock exchange Roman Goryunov. "The company will be established on the parity principles, no less than 50% stocks receives the Ukrainian part. Thus, not only market participants can appear partners but also one of the Ukrainian stock exchanges", Mr. Goryunov explained.

One of the members of RTS board of directors asserts that PFTS stock exchange can become their most probable partner, which should receive 25% of the new stock exchange. The employee of one of the Ukrainian stock exchanges confirmed that PFTS has got RTS offer. However, in PFTS reported that they will not officially comment the matters, related to the possible entrance of RTS stock exchange to the Ukrainian market.

In RTS mark that presently verbal arrangements with more than 10 largest Ukrainian companies are reached. According to the information, they include Concorde Capital, Investment Group Sokrat, Renaissance Capital Ukraine, Troika Dialog Ukraine. Last year RTS already negotiated the acquisition of the controlling stock interest of one of the nine Ukrainian floors – Innex stock exchange. However, final agreements on the sum of transaction were not reached yet.

In the opinion of the Ukrainian market participants, the project will come RTS at $10-15 mln. In case of realization it can become the good alternative to PFTS, on the stake of which falls now 90% of all Ukrainian stock market. "PFTS infrastructure has substantial disadvantages. In particular, the trading system hangs quite often, and risks on execution of transactions are very high", says Igor Mazepa, the general manager of Concorde Capital.

That is why experts doubt that negotiations with PFTS will finish successfully. "By the technical equipment RTS considerably exceeds the Ukrainian stock exchanges, therefore, if it transfers the trading technologies to Ukraine, PFTS can lose the great part of its clients", considers Sergey Alekseenko, the vice-president of Renaissance Capital Ukraine. Maybe, therefore on RTS are ready to discuss participation of other potential partners. "Now we are in the process of negotiations with the few floors", marked Roman Goryunov.

To prevent the success of the new RTS initiative can only the activity of other foreign stock exchanges on the Ukrainian market. About the plans to open representative offices in this country already declared the Warsaw Stock Exchange (WES), German stock exchange operator Deutsche Boerse, Scandinavian stock exchange operator OMX Group and Viennese stock exchange Wiener Boerse AG. "Actually, the coming to the Ukrainian market of one of the foreign trading floors means that this market will be completely closed for other nonresidents, therefore at the moment some foreign trading floors consider the opportunity to acquire one of the Ukrainian stock exchanges", reported the head of one of the Ukrainian trading floors.