Corporate Eurobond Trading

Moscow Exchange offers trading in corporate Eurobonds as of 14 October 2014:

1. Advantages:
   • No requirements for qualified investor status.

   Eurobonds may be traded by investors that are familiar with the risks associated with acquiring foreign securities¹
   Qualified investors are also able to trade Eurobonds.

   • No restrictrions on FX settlement for residents²

   ¹  In accordance with point 21.8, ar. 51.1 of the law of 22.04.1996 N 39-FZ (ed. of 21.07.2014) 'On the Securities Market'
   ²  Point 5, ar. 9 of the law of 10.12.2003 N 173-FZ (ed. of 21.07.2014) 'On  Currency Regulation and FX Control'

2. Trading technology:

   Trading modes:

   • Anonymous Order Book ('Т0 order book')

   EQEU board — Bonds (sett. in USD)

   • Negotiated Trading Mode

   PSEU board (sett. in USD)

   PSOB board (sett. in RUR)

   Settlement code- To, B0-B30, Z0

   Interdealer Repo

   • Repo with bonds (in FX)

   RPEU board  (sett. in USD)

   RPMO board (sett. in RUR)

   Settlement code – Rb, S0, S1, S2, Z0

   All settlement codes are available and all kinds of reports (simple, special, urgent) provided for such trading modes.

   Trading in these modes is proceeded without a central counterparty (NCC) with the exception of the main trading mode ("T0 order book") - settlement code T0 and negotiated trading mode (NTM) with settlement code T0. The main trading mode ("T0 order book") and NTM with settlement code T0 include transactions only on condition of 100% pre-funding.

   Standard lot size:

   • In Anonymous Order Book ('T0 order book') and Negotiated Trading Mode:

   Standard lot size for Eurobonds is set according with denomination size of the bond (see table below)

   • In Repo with Bonds (in FX) /Repo with Bonds Mode:

   Standard lot size for Eurobonds equals one security

3. Tick size:

   Tick size for the bonds denominated in foreign currency: 

   Trading modes (except for REPO):Tick size - 0.0001% of the bonds nominal value. REPO trading mode. Discount step - 0.000001%.

4. Risk parameters:

   Corporate Eurobonds:

   • not admitted for trading with partial collateral (risk parameters and a single limit on such securities in this case are not calculated)
   • are not accepted as collateral for the NCC deals. 

   The risk parameters in accordance with the Bank of Russia Instruction 3234-Y

   The values of the rates of market risk for securities not included in the clearing sheet is calculated in accordance with the Methodology for determining the risk parameters of the securities market CJSC "MICEX Stock Exchange". Clearing of these securities is made on the terms "with full coverage".

   Values of restrictive minimum market risk rate separately calculated by NCC and are used to determine the size of the initial margin for customers referred to the category of clients with increased risk level.

5. Trading Eurobonds in currencies other than the currency of denomination

   Trades with International bonds of the Russian Federation:

   For negotiated trade mode deals with settlement codes B0-B30, made in Russian rubles, the volume of transactions and the ACI is automatically converted before the start of trading at the Bank of Russia on the date of execution.

   For NTM transactions with settlement codes T0 made in Russian rubles, the volume of transactions and the ACI is automatically translated using the exchange rate of the Bank of Russia set the date of conclusion.

   ACI calculation on deals settled in a currency other than the currency of denomination

   Features of ACI calculation in accordance with the letter of the Ministry of Finance of the Russian Federation on specific issues of government bonds of external bonds of the Russian Federation.

6. Commission

   Commission is charged³:

   • On the day when the trade is done,
   • In RUB,
   • At the Bank of Russia rate on the date the trade is completed.

   ³ Subsection 1.11. of Section 1 of the Regulations on Trading Securities on MICEX SE

   All settlement codes and all kinds of reports (simple, special and urgent) that are intended for these trading modes are available. Russian Sovereign Eurobonds and Eurobonds of VEB Leasing and VEB already, denominated, in FX, already trade on Moscow Exchange under the current system.

7. Reporting of OTC trades

   OTC trades in corporate Eurobonds from Level 3 list (the unquoted section of the List) are not to be reported. By Regulations on trade reporting⁴, OTC trades executed on behalf of a broker and at its own expense or on behalf of a broker and at client's expense are to be reported to the Exchange if:

   • trades were made in a security included on the Level 1 and Level 2 lists;
   • the trade implies the ownership transfer.

   ⁴clause 2, Regulations on trade reporting that was approved by the FFMS's Order No 06-67/pz-n on 22 June 2006.

8. For issuers: Eurobond listing on Moscow Exchange at the issuer's request

   Listing requirements for Eurobonds from foreign issuers.

   Tariffs for including Eurobonds at the issuer's request and maintenance on the list are the same as those for inclusion and maintenance of Russian corporate bonds.

Corporate Eurobonds admitted for trading on the Moscow Exchange:

List of the corporate Eurobonds admitted for trading on the Moscow Exchange

Subfederal eurobonds admitted for trading on the Moscow Exchange:

List of sub-federal eurobonds admitted to trading on the Moscow Exchange.