The question itself is not put really reasonably. In fact the classic market RTSE where the main volumes pass is not exchange on the essence. By the way not all transactions concluded in RTSE are is registered in the system (not more a third).

Nevertheless it is possible to point out the following. On the MISE volumes were ahead of RTSE ones at once after the crisis in 1998. It was related to the so-called contractor risk, when brokers began to close limits on each other that sharply struck on liquidity of market. Small brokers were forced to go to MISE to sell «hung» papers at any price. For example, at the beginning of 1999 there was even such situation, when the «Surgutoilgaz» shares were carried on MISE for 6% cheaper, than on RTSE. And large brokers for a long time could not trade on MISE, as they did not have limits on the Russian ruble because they were oriented on western funds. All «domestic-oriented» brokers struck bargains without problems, using the depositary center of MISE. Could you imagine what arbitrage opportunity was then? And only then «westernists» seeing what «sweet» prices their favorite shares are bargained at, in an emergency order acknowledged ruble and began to establish accounts. Certainly, the volume of auctions on MISE jumped up sharply.

At the same time the first internet-brokers appeared. They enabled natural persons to trade directly through the special penstocks on MISE, passing talking with a broker by phone. Such players paid only a commission which in course of time became only laughable due to conscientious competition. They see honest prices. They trade «in a moment».

In addition, on MISE marginal trade is strongly developed. MISE added oil to the fire, allowing to lead and destroy securities and money on an exchange almost on-line. Finally, only there is the market of repo on MISE. Because of plenty of the various «merchants» brokers often do not see the real positions of themselves and clients, that forces them to borrow securities at each other. And also arbitration did not go anywhere, the depositary receipts prices the of the Russian companies sometimes differ from prices for similar shares on MISE. Although now it is considerably less than earlier.

Burn with a low blue flame

The last in succession loss in the RTSE baggage is exchange market of shares of «Gasprom». Before last January the law foresaw the special rules of making a bargain with these security. RTSE held tenders on them in alliance with the stock exchange «Saint Petersburg». Within the RF in fact it was a monopolist and could use this unique position as one of competitive edges. At sight after the removal of legislative limitations it sharply reduced commissions on operations with shares of «Gasprom». In last January exchange charge decreased in five times, and the payment for clearing, that means settling on transactions, – more than in three times. However, these steps did not help RTSE to save the status quo, and for the last months main trade turnover “overflew” on MISE. It is an irreversible process, interlocutors suppose. For brokers and their clients It is more comfortable and cheaper to hold all «blue chips» in one basket.

Are the prospects of shares market on RTSE good?

NO

- The practice shows that for our country one good ground is enough, where investors and speculators could meet and trade. For example, when at the beginning of the year MISE started auctions of «Gasprom» shares, liquidity from the exchange stock Saint «Petersburg» « overflew» there. Is it good or bad? To the professional participants it is more comfortable to deal with one organizer of trade, than with some. In this case it is possible to manage money more effectively and be engaged in arbitration operations with the use of instruments of different segments of market. For auction grounds the scenario of monopolization is certainly gloomy. Nevertheless it is necessary to move exactly in this direction.

YES

- RTSE was created and developed as auction ground for the professional participants of market. Now the most part of transactions with low- marketable shares are made exactly there, that means with securities requiring the deep analysis and willingness to risk. MISE is more universal, it is comfortable there for professionals, and private investors, and speculators. The stake of the last at the market grows lately, that helps MISE to lead. Investors win when auction activity is concentrated on one exchange, because market liquidity is not divided between a few participants. In addition, it is much easier to carry out settlings, if money and of all market participants are in one organization. But in case with non-liquid instruments the requirement of exchanges to deposit money and securities beforehand is the obstacle for trade. Therefore the existence of separate grounds with their own peculiarities is reasonable. RTSE can occupy the niche of «Russian Nasdaq», developing stock trade of the second echelon shares and enabling to conduct IPO of the new issuers.