By Marcus Williams
Russian brokerage Otkritie has launched a new trading platform that will allow foreign investors to use its 'direct market access to execute trades on Moscow's Micex without pre-depositing with a broker.
The new platform, which is backed by ING's international custodian, allows the straight through processing of electronic orders onto Micex and settle into a third party custody account.
Up until now, the most transparent route for investors into the Russian market has been through the process of DMA, as it offers direct access to exchange liquidity. However, issues have remained as the Micex is a T+0 market, meaning that stock/cash must be pre-delivered before trades can happen. Therefore, investors have been required to make free-of-payment deliveries of stocks/cash pre execution and accept the associated risks, or pay for broker financing.
Roman Lokhov, head of global markets & investment banking at Otkritie, said the service addresses "age-old problems" surrounding execution and custody in Russian equity markets. He said: "This is the final logical step in bringing Russia as close as possible to international best practice trading standards.”
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