Russian President Dmitry Medvedev has signed into law a bill regulating placement and trading of foreign-issued securities in Russia.
The move, when it is actually sealed and delivered, should allow Moscow's stock exchanges to compete with Warsaw which has been winning issuance from Ukraine and other countries in the former Soviet Union sphere.
Citing the presidential press service, the news agency Prime Tass said that the law opens and regulates access to the Russian market for issuers of foreign-listed securities in the member countries of the Organization for Economic Cooperation and Development (OECD), the Financial Action Task Force on Money Laundering (FATF), and the Council of Europe Select Committee of Experts on the Evaluation of Anti-Money Laundering Measures.
According to the law, foreign-issued securities could be admitted for trading by a Russian exchange after the Russia's main financial markets regulator registers a prospectus.
Foreign-issued securities could be made available in Russia either to the general public or to qualified investors only.
Both domestic exchanges have already started lookinng to Asia and the Commonwealth of Independent States for growth and potential dual listings. RTS acquired an equity stake in the Ukrainian stock market, Inneks, while Micex has signed a co-operation agreement with the Hong Kong stock exchange, which could pave the way for dual listings.
Warsaw though has already stolen a march. The main Polish bourse has an agreement with Baltic nd Ukrainian brokerage firms which has already brought in foreign listings. Warsaw represents the main threat to the Russian exchanges’ hopes of becoming the leading trading centres in the region.
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