Terms of Data

Public Information Service Offer

Moscow

This offer is made by Public Joint Stock Company Moscow Exchange MICEX-RTS (Moscow Exchange) to legal entities and individuals, both Russian residents and non-residents (the "Users") to provide them with Information Services in the manner and on the terms and conditions stipulated herein. This offer is a public offer (the "Offer") in accordance with Article 437 of the Civil Code of the Russian Federation.

This Offer as published on the Moscow Exchange website is to be deemed to have been accepted by the User in full and unconditionally upon the completion by the User of an application (consent) (the "Application") for Information Services in the manner and under the terms set out in this Offer and payment for the services.

The Offer acceptance means that the User has read and agreed with terms of this Offer including all terms (and the manner in which the services will be rendered) by which the Information services will be provided.

The Offer acceptance is equivalent to signing an Information Service Agreement with Moscow Exchange (the "Agreement") in the manners and on the conditions determined herein. If a User was not properly authorised by a legal entity to accept this Offer, he takes full individual responsibility to comply with the Offer.

By accepting this Offer in full and expressly, a User (subject of personal data) gives consent to Moscow Exchange for personal data to be processed. Such personal data is provided by the User at registration on the Exchange website and in a completed Order. Moscow Exchange assumes that the User submits accurate and complete personal data and does not verify it.

1.Terms used herein have the following meanings:

1.1.The Exchange means Public Joint Stock Company Moscow Exchange MICEX-RTS.

1.2.The Exchange Software and Hardware Suite (the SHS) means a set of computing facilities, software, data bases, telecommunication tools, and other Exchange equipment that ensures maintenance, safekeeping, processing, and disclosure of data required for on-exchange trades in financial instruments to be executed and settled, and for services to be provided with regard to market data of the Exchange and other organisers of trading under agreements between the Exchange and such organisers of trading.

1.3.Index is a benchmark calculated by the Exchange on the basis of trades executed on the Exchange measuring the aggregate price performance for a selection of securities.

1.4.Indicative risk rates means rates of upside risk (S0H) and downside risk (S0L) associated with a security, symmetrical risk rate (S0) and relative rate (d) calculated by the Non-Banking Credit Institution Central Counterparty National Clearing Centre (NCC) for the horizon of two Trading Days with the confidence probability not less than 99% (VaR(1Y, 99)).

1.5.Information Product means a set of Market Data, Index Reports, Indicative Risk Rates for instruments admitted to organised trading conducted by the Exchange, or Trading Repository Data, any of which is available to the User pursuant to the Agreement.

1.5.1.Market Data means non-confidential real time and end-of-day market data (messages, details) of Moscow Exchange, processed and systematised using the Exchange software and hardware tools and equipment, which is grouped into the following sets (blocks):

1.5.1.1.Real Time Market Data Stream means MOEX market data with a delay of less than 15 minutes from the moment of its appearance in the Exchange SHS, including impersonal data on orders and trades of the current trading day, which data is structured into the following Information Products (blocks):

a.Equities: all trading parameters on a real time basis for all shares, fund units, and depository receipts available on the Exchange;

b.Bonds: all real time trading parameters on a real time basis for all bonds available on the Exchange;

c.Currencies: all trading parameters on a real time basis for all FX market instruments available on the Exchange;

d.Futures & options: all trading parameters on a real time basis for all derivative instruments available on the Exchange;

e.Repo: all trading parameters on a real time basis for all instruments available in the REPO Section of the Stock market of the Exchange and on the Deposit market of the Exchange.

1.5.1.2.End-of-Day History means MOEX Market Data for a specific period of time that is grouped chronologically in the form of the following Information products (blocks):

a.Aggregated results: end-of-day aggregated trading results (prices, volumes, and quantities) exclusive of non-personalised trade and order registers;

b.Non-personalised exchange trade registers: chronological trade registers (non-personalised data) per day of a given period;

c.Trading results for modes intended for qualified investors: trading results per period (without trade registers) for modes eligible for qualified investors only. Such trading results are also for securities admitted to trading modes for qualified investors.

1.5.1.3.Archive Data means end-of-period Market Data in the form of the following Information Products (blocks):

a.Archives of all trades and all bids and offers means a historic log (register) of all trades (anonymous data) and all orders (anonymous data) for a given period in chronological order;

b.Archives of all trades and best bids and offers means a historic log (register) of all trades (anonymous data) and best bids and best offers (anonymous data) for a given period in chronological order.

1.5.1.4.Moscow Exchange FX Fixings means Market Data containing real-time and historical values of FX fixings and foreign exchange rates for the currency of a country expressed in a currency of another country , as defined in the Moscow Exchange Fixings Calculation Methodology published at https://fs.moex.com/files/4225.

1.5.2.Index Report means a data and analytics product compiled daily at the close of trading. It includes the list of securities in the Index with their closing values and other statistic and dynamic parameters used to calculate the Index, the Index value and other information that may influence, directly or indirectly, the Index.

1.5.3.Indicative risk rates for instruments admitted to trading on Moscow Exchange means values of Indicative Risk Rates S0, S0L, S0H and relative rates d (by pairs of instruments) calculated by NCC for individual instruments admitted to trading on MOEX.

Indicative risk rates are calculated individually for each currency and precious metal traded on MOEX’s FX and Precious Metals Markets, security on the Equity & Bond Market and futures contract on the Derivatives Market. Relative rates are calculated individually for specific pairs of FX and Precious Metals Markets instruments (FX~FX), Derivatives Market instruments (DM~DM), pairs of FX Market and Equity Market instruments (FX~EM) and pairs of Derivatives and FX and Precious Metals Markets instruments (FX~DM). The rates are calculated on a daily basis, except on non-trading days on the relevant markets of the Exchange.

1.5.4.Trade Repository Data means impersonal aggregated data on OTC derivatives and repo transactions, in particular, total notional values and number of OTC transactions reported to the National Settlement Depository (NSD) by financial market participants as at the reporting date or in the reporting month, by types of contracts and categories of transaction parties.

Trade repository data are disclosed on the fourth business day from the transaction date as of the reporting date (over one calendar day) or from the date of the last calendar day in the reporting period in which transactions were concluded (over one calendar month).

Trade repository data are not disclosed if the number of trades is less than ten on the reporting date or period.

1.6.Tariffs for Information Products (blocks) (hereinafter the Tariffs) means Moscow Exchange’s current fees for the provision of Information Products.

1.7.Exchange Service Fee means an amount of money calculated in accordance with the Tariffs and the User's Order and payable by the User for the provision of Information Products by the Exchange.

1.8.Derived Data means numerical data, including indices and indicators calculated on the basis of Information Products, which differ from the values of the initial information contained in the Information Products used for the calculation so that the algorithm of calculation of the Derived Data does not allow reproduction of the initial information contained in the Information Products.

1.9.Website means the official website of the Exchange, located at the URL: https://www.moex.com/

1.10.Residents of the Russian Federation means individuals having their permanent place of residence on the territory of the Russian Federation, as well as legal entities established pursuant to Russian law and having their place of business on the territory of the Russian Federation.

1.11.Non-residents of the Russian Federation means individuals having their permanent place of residence outside the territory of the Russian Federation, as well as legal entities established pursuant to the Russian law and having their place of business outside the territory of the Russian Federation.

1.12.Non-display use means any usage of Information Products, including recording, copying, systematisation, transformation, transfer, performing logical and/or arithmetic operations and other actions, performed fully or partially using computer programs (software tools, software), not aimed at: displaying information on screens (displays) and/or creating Derived Data on its basis. The processing of data in the back-office systems solely with regard to the User's orders and transactions does not constitute non-display use.

2.Subject matter

2.1.The Exchange renders to the User services on the provision of Information Products by providing password access to Information Products, indicated in User's Application, placed on the Website, for the period, indicated in User's Application (the "Information Services"), and User pays for these Information Services in the amount, according to the procedure and within the time frames, stipulated by the Offer.

2.2.Minimum service period for Information Products listed in clauses 1.5.1.1, 1.5.1.2, 1.5.1.4, 1.5.2, 1.5.3, and 1.5.4 above is one month (in terms of the present Offer 1 month equals 31 days), while the maximum service period for such products is 12 months. The minimum Information Services period for Information Products listed in clause 1.5.1.3 above herein is one business day, the maximum Services period is 10 business days.

2.3.Information Services are deemed to be rendered from the moment the Exchange provides the User, reserved for the relevant period specified in the User's Application, with password access to the Information Products posted on the Website.

2.4.Information Products are provided for information and internal non-commercial use by the User. Users are not entitled to transfer Information Products, either in whole or in part, in any form and through any facilities including electronic, mechanical, photocopying, recording and other, transmit it including via television or radio broadcasting, using mobile (wireless) access facilities, or to disseminate such Market data via its local networks, mock and training systems, analytical, monitoring, automated trading (HFT), and other systems providing Non-Display Usage of Information Products. Unless otherwise provided for in any agreement with the Exchange, Information Products, either in whole or in part, including those being part of the User’s product, shall not be posted on the User’s websites or any third parties’ websites and shall not be used to calculate Derived data (including user’s proprietary indices) intended for further public distribution.

3.Obligations and rights of the Exchange and the User under the Agreement

3.1.The Exchange undertakes:

3.1.1.Provide, at the User's request, the consultations necessary for the User's Application for Information Services.

3.1.2.Provide the User with password access to Information Products:

3.1.2.1.specified in clauses 1.5.1.1, 1.5.1.2, 1.5.1.4, 1.5.2, 1.5.3, 1.5.4 of the Offer, to the extent and for the period specified in the User's Application from the date of receipt of the Exchange service fee, made by the User in accordance with clause 4.2 of the Offer, or from the date of receipt from the User of confirmation of making the Exchange Service Fee, confirmed by the credit institution, which transfers this Fee to the Exchange's current account;

3.1.2.2.specified in clause 1.5.1.3 of the Offer, not later than two weeks following the day of receipt of the Exchange Service Fee to the Exchange's current account.

3.2.Moscow Exchange is entitled to:

3.2.1.Change the composition of the Information Products unilaterally.

3.2.2.Suspend Information services (upon provision of 48 hours’ notice prior to the expected time of the Service suspension) should the User fail to meet its obligations stipulated herein. The suspension shall take place until the User eliminates the failures in full. In this case, Exchange Service Fee shall not be revised and returned.

3.2.3.In case of repeated breach by the User of its obligations under the Offer, unilaterally terminate the provision of Information Services (with a notice to User 48 hours before the date of the proposed termination of Information Services). In this case, Exchange Service Fee shall not be revised and returned.

3.2.4.Control, including via Internet monitoring, fulfilment of the Offer conditions regarding usage of Information Products, including prevention of subsequent dissemination thereof that is unauthorised and unapproved by the Exchange.

3.2.5.Conduct information auditing (including by involving relevant third parties) in order to control compliance of Users with the terms of the Offer. In this case the Exchange shall notify the User of the audit at least thirty (30) calendar days in advance in the manner prescribed in clause 5.1. The information audit procedure is set out in the Moscow Exchange Market Data Policy available on the Website at https://fs.moex.com/files/7290.

3.2.6.Cancel, without notice to the User, the invoice issued pursuant to the User's Application and the Application if the Information Services have not been paid for more than two weeks from the date of the invoice and/or the completion of the Application.

3.2.7.Cancel an Application that is not paid if it is completed incorrectly by the User.

3.2.8.In accordance with Federal Law No. 152-FZ of 27 July 2006 "On Personal Data", to process personal data required for the performance of the Agreement.

3.3.The User undertakes to:

3.3.1.Establish on its own a contractual relationship with a telecoms operator concerning receiving telecommunication services required for Information services to be received, namely access to Internet and creating and maintaining an electronic mailbox.

3.3.2.Read on the Website the content and structure of ordered Information Products, Tariffs and samples of Information Products, as well as the structure of files (field descriptions) constituting Information Products;

3.3.3.Register once on the Website following the prescribed by the Exchange procedure, indicating its login (e-mail address) and password. In doing so, User is responsible for completeness and authenticity of the User's postal and banking details and other information provided during registration;

3.3.4.To make an Application for Information Services on the Website, filling in correctly all its fields: the name of the selected Information Product, term of service provision and the expected start date. The service period shall be a multiple of one month and meet the requirements set forth herein concerning the minimum and maximum periods for provision of Information services by the Exchange indicated in clause 2.2. In addition, the User shall confirm its consent with the terms of the Offer and the Tariffs by checking the box with relevant text and choosing the option "Submit Application";

3.3.5.Keep its postal and bank details current by changing its registration details in a timely manner on the Website;

3.3.6.Monitor for messages regarding expiration of the Information service period sent by the Exchange to the email stated in the Application (messages are sent 10, 7, 5, 3, and 1 days before the expiration of password-based access to the Information products listed in clauses 1.5.1.1, 1.5.1.2, 1.5.1.4, 1.5.2, 1.5.3 and 1.5.4 above).

3.3.7.Not to disclose its password for access to the Information Products on the Webite to any third party and not to access the Information Products (blocks) from different devices using the same login and password simultaneously. The device shall be construed as any appliance that allows display, storage, and processing of information contained in the Information Products for personal use without the right of public dissemination of such information (for example, the User’s PC with one monitor, a tablet, iPad, etc.).

3.3.8.Use Information Products only for the purposes contemplated herein.

3.3.9.Provide to the Exchange and/or third parties authorised by the Exchange the opportunity to conduct information audits, including by providing access to its products, services and systems containing or using the Information Products. Access for information audits shall be provided upon a written request from the Exchange (if necessary, under the control of the User's specialists).

3.4.The User is entitled to:

3.4.1.Accumulate, store and use Information Products received in accordance with the present Offer for its internal use.

3.4.2.Contact the Exchange with questions regarding filing the Application, receiving and paying the invoice, and preparing accounting documents related to provision of the Information services by the Exchange on +7 (495) 363-32-32.

3.4.3.Contact the Exchange at +7 495 733-9507, +7 495 363-32-32 ext. 12345 with regard to technical support: problems with registration on the Website, making an application, access to Information Products posted on the Website, incorrect display of information in them.

3.4.4.Arrange your access to selected Information Products, either through a standard browser or by using a specialised MOEX Trade Info programme to view Market Data.

3.4.5.Check today’s status of the Application in the ‘Paid services’ section of the Website.

4.Amount of the Exchange Service Fee and settlement procedure

4.1.The Exchange Service Fee for services provided to the User is calculated in accordance with the Tariffs applicable on the date of making the Application as posted on the Website https://fs.moex.com/files/8504.

4.2.Information Services is paid by the User on the basis of a 100% advance payment (the Exchange Service Fee) via bank transfer to the Exchange's settlement account on the basis of the invoice issued by the Exchange.

4.2.1.Within two working days of the Application date, the Exchange shall send an invoice for payment to the e-mail address indicated in the Application. Payment shall be made by the User within three business days of the invoice date indicating in the documents confirming the payment the number and date of the Exchange invoice, and in case of payment of the invoice issued to the User by a third party, indicating the name of the organisation or full name (for individual Users) for which payment is made.

4.3.On the invoice payment date, the User shall notify the Exchange of the payment for the Information Services by e-mail to commerce@moex.com with a copy of the payment document with a note from the executing bank.

4.4.Upon receiving funds in the amount of the Payment for Information Services, the Exchange sends two original copies of the acceptance certificate (hereinafter the Certificate) and an invoice to the User by registered mail to the address stated by the User in the Application.

4.5.If the User fails to submit the signed Certificate to the Exchange or reasonable rejection to sign it within 30 (thirty) calendar days after the Certificate was send, the Certificate signed by the Exchange with a record of the User’s failure to sign it shall represent the document proving the rendering the Information Services to the User.

4.6.The Exchange is entitled to change the Tariffs unilaterally. The Exchange Service Fee for the services ordered in the Applications executed prior to the Tariff change date remain unchanged.

4.7.VAT shall be charged in addition to the Tariffs in cases stipulated by the current legislation of the Russian Federation.

5.Miscellaneous

5.1.Any documents send by the Exchange and the User to each other in accordance with the present Offer and/or Agreement, including by email, shall be considered as having legal force for the Exchange and the User.

5.2.The User agrees that documents stated in clause 5.1 are exchanged via insecure communication channels. The User has been notified and he agrees that communication channels used for transferring messages are public and do not ensure complete protection of data transferred. The User agrees that the Exchange bears no liability for any information being revealed that is transferred via such unsecure (public) communication channels.

5.3.The User and the Exchange is responsible for any failure to perform or improper performance of the obligations hereunder in accordance with Russian law and the present Offer.

5.4.If the Exchange (including as a result of Information Audits) discovers that Information Products are used for purposes and in ways not stipulated by the Offer, the User shall, at the request of the Exchange, pay to the Exchange a fine equal to two times the amount of the unreceived Exchange Service Fee, calculated in accordance with the Tariffs, based on the ways of using Information Products, but at least RUB 250,000 (two hundred fifty thousand) for each violation connected with the use of Information Products.

5.5.Any issues not covered in this Offer shall be addressed by the Exchange and the User in accordance with Russian law and the Moscow Exchange Market Data Policy available on the Website at https://fs.moex.com/files/7290.

5.6.The Exchange is not liable for any failures to provide the Information services due to any technical issues beyond its control, including any disruptions in functioning the Software and Hardware Complex of the Exchange, malfunctions, defects and failures of equipment, glitches and errors of software, malfunctions, disrepair, and failures of communication systems, power supply, conditioning, and environmental support systems, in case of any other force majeure circumstances and in case of problems in the operating of communication channels of the User’s provider, unavailability of the User’s mail server, or its refusal to process a message from the Exchange relating to the provision of the Information services under the present Offer or containing documents and/or information related to the provision of the Information services under the present Offer.

5.7.The Exchange shall not be liable for the achievement of any financial results associated with the use of the Information Products, nor for any losses resulting from investing on the basis of the received Information Products, nor for any investment, trading or other decisions of the User associated with the use of the Information Products.

5.8.The User is advised to take following measures in case of problems with access to Website (the connection cannot be established, or it is periodically interrupted, and/or data is updated with delays or with session suspension):

Attempt to establish connection to the Website;

If a connection cannot be established, check the availability of the communication channel beyond the User’s provider (by using commands ping, nslookup, traceroute, etc., or visiting any website known by the User);

Contact the Provider if the communication channel is out of operation;

Call +7 (495) 705-96-55, (495) 745-81-29 if the communication channel works, but there is still no stable connection with the Website.

5.9.The Parties shall endeavour to solve any disputes which may arise between them while performing this Offer through the complaint procedure. The Party is allowed 10 (ten) business days to reply to a complaint. In the event that negotiations do not settle all issues to the mutual acceptance of the Parties, then any outstanding disputes between the Parties shall be settled in the Arbitration Court of the City of Moscow or any general jurisdiction court (for individual Users who are not individual entrepreneurs).

6.Addresses and banking details of Public Joint Stock Company Moscow Exchange MICEX-RTS

Mailing address: 125009, Moscow, Bolshoy Kislovsky per, 13
Located at: Russian Federation, Moscow, Bolshoy Kislovsky per, 13
Bank account 40701810300020001237 opened with OJSC Sberbank of Russia in Moscow
BIC 044525225
Correspondent account 30101810400000000225
Taxpayer Identification Number (INN) 7702077840
RRC 997950001
Email: commerce@moex.com

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    Advanced practices of responsible investing

    Global trends show that investment companies and financial institutions have been transforming their investment strategies. Issuers’ commitment to the principles of sustainability is becoming an important factor in choosing recipients of investment. As a participant in the Sustainable Stock Exchanges initiative, Moscow Exchange upholds the principles of responsible investment and creates opportunities to expand sustainable practices in Russia.

    MOEX Group corporate goals relevant for this focus area and set in line with UN SDG targets
      SDG 8.3, 9.3 Increase growth opportunities and access to financial markets for small and medium-sized enterprises (SMEs)
    SDG 8.10 Develop a financial infrastructure for access to capital markets, and promote the development of a local investor base
    SDG 9.b Increase growth opportunities and access to financial markets for companies developing innovative products
    SDG 9.1 Increase access to financial services for retail investors
    SDG 12.6, 12.8 Improve the quality and quantity of ESG information disclosed by issuers SDG 12.6, 13.3 Increase companies’ awareness of sustainability trends, standards and best practices

    Major highlights in responsible investing

    Sustainability sector
     

    In 2019, in cooperation with the Ministry of Economic Development of the Russian Federation, Moscow Exchange launched its Sustainability sector, a special sector for trading target-oriented securities. Objectives of the Sustainability sector:

    • to help companies, public authorities, and other issuers raise funds for environmental and social projects;
    • to create an environment conducive to foreign investment in Russian bonds;
    • to offer a set of instruments for funding initiatives that meet the objectives of national projects and comply with Decree of the President of the Russian Federation No. 204, dated 7 May 2018, ‘On National Goals and Strategic Objectives of the Development of the Russian Federation to the Year 2024’.

    The Sustainability sector consists of four independent segments.

    Segments of Sustainability Sector

    Green bonds Social bonds Sustainability bonds National and adaptation projects
    Green bonds are debt securities, the proceeds of which are used to finance projects aimed at improving the environment. Such projects include renewable energy sources, environmentally friendly transport, energy efficiency improvement, reduction of GHG emissions, waste recycling, etc. Social bonds are debt securities, the proceeds of which are used to finance social projects. Such projects include creating social infrastructure or developing social services, building affordable housing, developing small businesses, and other social objectives. This segment features the securities of companies implementing projects that promote environmental and social sustainability. Securities in this segment must be consistent with the objectives of national projects or be compliant with the taxonomy of climate adaptation projects.


    Principles for including bonds in the Sustainability sector
    The green bonds segment includes bonds issued by Russian issuers whose bond issue(s), investment project(s), or issuer’s document(s) meet the internationally recognised Green Bonds Principles (GBP) of the International Capital Market Association (ICMA) or the Climate Bonds Initiative (CBI) and the Russian principles/standards for environmental protection and/or green financing and/or sustainability established by the Securities Issuance Standards, provided that the issue, issuer, or project has received independent verification confirming compliance with these principles or standards.
    The social bonds segment includes bonds issued by Russian issuers whose bond issue(s), investment project(s), or issuer’s document(s) meet the internationally recognised Social Bonds Principles (SBP) of the International Capital Market Association (ICMA) and the Russian principles/standards for social financing and/or sustainable social projects established by the Securities Issuance Standards, provided that the issue, issuer, or project has received independent verification confirming compliance with these principles or standards. The sustainability bonds segment may include bonds in relation to which the bond issue(s), investment project(s), or issuer’s policy for raising funds has received independent verification confirming compliance with the following internationally recognised standards and documents:

    • Green Bonds Principles (GBP) of the International Capital Market Association (ICMA) or the Climate Bonds Initiative (CBI)
    • Social Bonds Principles (SBP) of the International Capital Market Association (ICMA)
    • Russian Principles/Standards for Green and Social Financing and/or Sustainable Social Projects established by the Securities Issuance Standards

    The national and adaptation projects segment may include bonds that meet the following requirements decision of a government body, official, or interdepartmental committee confirming alignment with the objectives and results of one of the following national projects: Environmental Protection, Housing and Urban Environment, Comprehensive Plan of Modernisation and Expansion of Key Infrastructure, Demographics, Healthcare, Education, Labour Productivity and Employment Support, Culture, or Introduction of Best Available Technologies, independent verification confirming the project’s compliance with the criteria (taxonomy) for adaptation projects, with the condition that it be financed with the proceeds from the bond placement.

    Listing rules
     

    To be considered for inclusion in the Sustainability sector, issuers must submit:

    • an application for inclusion in the sector;
    • a certificate from an external verification body;
    • a statement that the issuer undertakes to disclose information (no less than once a year throughout the lifetime of the bond) confirming that the funds raised are being put to appropriate use;
    • for the national projects segment: a statement from a government body, official, or interdepartmental committee confirming that the offering, the issuer, or the investment project are consistent with the objectives and results of one of the national projects.

    KEY DOCUMENTS:

    • Listing Rules of Moscow Exchange
    • Social Bonds Principles (SPB)
    • Green Bond Principles of the International Capital Market Association, (ICMA), 2018
    • Climate Bonds Standard of the Climate Bonds Initiative
    • VEB.RF Taxonomy (VEB.RF National Methodology for Green Financing)

    RESPONSIBLE BODIES:

    • Listing Department


    ESG indices
     

    The Responsibility and Transparency Index and the Sustainability Vector Index are calculated in accordance with the partnership agreement signed in March 2019 between Moscow Exchange and the RSPP. The purpose of the partnership agreement is to develop and boost sustainable business practices among Russian issuers, improving their investment appeal and helping them become more transparent and trustworthy to investors. The composition of the indices is reviewed annually through an RSPP analysis of the reporting of major Russian companies. The indices are released daily on the websites of Moscow Exchange and the RSPP, as well as through various news agencies.

     

    KEY DOCUMENTS:

    • Methodology for Calculating Moscow Exchange ESG Indices

    RESPONSIBLE BODY:

    • Indices and Market Data Department


    ESG ETFs
     

    ESG ETFs construct their investment strategies and determine their asset structures based on the relevant sustainability stock indices of Moscow Exchange. By purchasing units of ESG ETFs, investors gain access to a diversified portfolio of the most successful Russian companies that adhere to the principles of sustainability Investors can manage their units independently. ETFs are the most popular securities with retail investors around the world.

     

    KEY DOCUMENTS:

    • Rules for Trading on the Equity and Bond Market of Moscow Exchange

    RESPONSIBLE BODY:

    • Equity Market Department


    Growth Sector
     

    In 2017, Moscow Exchange launched the Growth sector in cooperation with the Bank of Russia and a number of other partners, including the Ministry of Economic Development of the Russian Federation, SME Corporation, and SME Bank.

    The purpose of the sector is to help promising small and medium-sized enterprises raise capital. The primary objective of the sector is to facilitate the implementation of the ‘Small and Medium-sized Entrepreneurship and Support of Individual Entrepreneurship Initiatives’ national project.

    The sector already has a mature ecosystem that includes:

    • a set of rules for entry to the sector, including a risk management system for vetting companies
    • a set of partners (development institutions)
    • a network of professional service organisations
    • government support tools

    The Growth sector of Moscow Exchange is supported by the government, per Decree of the Russian Government No. 532, dated 30 April 2019, which provides for partial compensation of the costs of issuing shares and bonds and the costs of agreements on the assignment of a credit rating.

    Measures to support companies in the Growth sector include:

    • subsidies of up to 70% of the coupon rate;
    • compensation of up to RUB 2.5 million for the issuer’s costs on the placement of the securities;
    • anchor investments from SME Bank, with an option that it act as the co-organiser of the offering;
    • guarantees and endorsements for SME Corporation’s bond offerings (up to RUB 1 billion);
    • help from the territorial divisions of the Bank of Russia in organising events for issuers;
    • waived listing fees for SMEs placing bonds of up to RUB 400 million up to the end of the year.


    Listing rules

    Listing rules for SMEs:

    • The issuer must have been established at least three years prior to the issue.
    • The issuer must have revenue of at least RUB 120 million. The maximum revenue must be less than RUB 10 billion for bond issuers and less than RUB 25 billion for issuers of shares.

    For bond issuers:

    • the minimum issue volume is RUB 50 million;
    • there must be an assigned rating or support from development institutions (guarantees from SME Corporation or anchor investments from SME Bank).

    Priority is given to:

    • SMEs;
    • companies showing growth in their financial results;
    • industrial companies;
    • companies with export revenue;
    • companies that have received support from SME Corporation, SME Bank, FRP, REC, or RDIF.


    Company screening and risk management

    Companies that wish to join the Growth sector must meet a number of criteria. Every new issuer must undergo KYC (Know Your Customer) procedures that include a review by experts from departments of Moscow Exchange who vet every applicant against a set of risk parameters. If the review reveals any potential risks, the issuer’s file is forwarded to the Growth Sector Board Committee, which then makes a final recommendation.

    Many small and medium-sized businesses joined the Growth sector after receiving support from our partners, such as guarantees and endorsements from SME Corporation, anchor investments from SME Bank, or a subsidised coupon rate (which significantly reduces the likelihood of default).


    Innovation and Investment Market
     

    The Innovation and Investment Market of Moscow Exchange was launched in 2009 to attract investments to the innovative sector of the Russian economy.


    Listing rules
     

    Key listing requirements:

    • market capitalisation of at least RUB 500 million;
    • business areas: telecommunications, internet, software, development and production of semiconductor devices, biotechnology, pharmaceuticals, high-tech, knowledge-based technologies, new materials, energy efficiency, etc.;
    • credit rating assigned to the issuer and/or its bond issue by one of the approved ratings agencies;
    • securities prospectus drawn up in line with Russian laws and information disclosure standards;
    • investment memorandum containing detailed information about the company’s financial and operational activity and the main goals and plans for delivering potential growth.

    The innovative segment requires the involvement of a listing agent (i.e., an advisory, broker, or investment company accredited by Moscow Exchange).

    Measures to support companies in the IIM sector:

    • marketing and promotion programmes for issuers conducting an IPO/SPO;
    • attracting investors targeting companies of the given type;
    • IR services and tools: presentations for investors, roadshows, webinars;
    • information and analytical coverage based on monthly IIM reports;
    • access to pension savings: according to Central Bank of Russia Regulation No. 580-P, up to 5% of the portfolio of pension savings of NPFs can be invested in shares of issuers included in the IIM-Prime segment;
    • tax incentives for investors.

     

    KEY DOCUMENTS:

    • Rules for Classifying Shares and Bonds of Russian Organisations, as well as Investment Units Circulating on the Organized Securities Market as Securities of the High-tech (Innovative) Sector of the Economy (approved by Russian Government Decree No. 156 dated 22 February 2012)

    RESPONSIBLE BODIES:

    • Managing Director for Relations with Issuers and Authorities
    • Committee for Development of the Innovation and Investment Market
    • Innovation and Investment Market Coordination Council



    Carbon unit market
     

    Moscow Exchange believes that the creation of a voluntary market for carbon units is a key step in the creation of real economic incentives for decarbonisation projects as part of the Russian Federation’s commitments under the Paris Climate Agreement, adopted on 12 December 2015 by the 21st session of the Conference of Parties to the United Nations Framework Convention on Climate Change. The project is also important in maintaining the competitiveness of exporting companies. The transition to a low-carbon economy requires an interim adaptation phase in which climate projects serve as an emissions regulation tool. Their implementation results in the generation of carbon units, the market for which contributes to the harmonisation of economic relations among the commodity market players subject to international agreement on the rules of the new turnover mechanisms.

    After addressing the issue, the Ministry of Economic Development and Trade of the Russian Federation and Moscow Exchange have proposed the establishment of an infrastructure for the operator of a carbon accounting registry. The operator was established on the basis of Kontur JSC, an existing legal entity.

    In the creation of a carbon unit registry operator, Moscow Exchange will have the following tasks:

    • assisting the operator in supporting the operational processes of the operator’s platform;
    • participating in the development of methodological and regulatory documents regulating the operator’s operational processes, interaction with registry customers, as well as with state bodies and international organisations;
    • developing proposals for the operator’s participation in carbon unit trading and implementing such proposals together with other parties.


    Carbon project and carbon unit registration process
     

    A set of measures providing for the reduction (avoidance) of greenhouse gas emissions or their increased absorption can be a climate project.

    The project shall meet the following criteria to be recognised as a climate project:

    1. It is consistent with federal and regional law on the territory where the project is implemented and carried out pursuant to the documents of the national standardisation system for limited greenhouse gas emissions.

    2. It does not result in increased greenhouse gas emissions or their reduced absorption outside the project.

    3. It is supplementary to measures targeting compliance with the mandatory requirements of Russian law effective as of the start of the project.

    4. It is not a result of reduced production.

    5. The reduction (avoidance) of greenhouse gas emissions and/or their increased absorption within the project implementation period is not a result of factors unrelated to the project activities.

    6. Climate projects include low-carbon energy, resource conservation, efficient waste management, sustainable agriculture, and reforestation projects.

    The project shall be registered in the carbon unit registry prior to its actual implementation.

    To issue carbon units into circulation, it is necessary to:

    1) register the climate project in the carbon unit registry;

    2) submit an application for the issue of carbon units from an individual account on the Public Services (Functions) Portal of the Russian Federation with the following documents attached to it:

    – a document certifying the powers of the climate project manager, contractor, or other authorised person who has signed the application for the issue;

    – a verification report;

    – the application for the issue with enclosed documents must be signed with an enhanced encrypted and certified digital signature and sent to the operator;

    3) submit an order to credit the carbon units to the account of the climate project contractor upon receipt of notification of the issuance of carbon units;

    4) pay the service.


    Carbon unit and quota fulfilment unit

    A carbon unit is a verified result of the implementation of a climate project expressed as a mass of greenhouse gases equivalent to one tonne of carbon dioxide.
    A quota fulfilment unit is a verified result of the fulfilment of a set quota expressed as the difference between the set quota and the actual mass of greenhouse gases emitted, quoted in equivalent tonnes of carbon dioxide.

    Climate project verification
     

    Project verification is a process of evaluating and verifying the calculation of the number of carbon units issued. It must be carried out by a person accredited by the Russian Federal Service for Accreditation (RusAccreditation).

    The report is generated using the results of the implementation of a climate project verified in accordance with Part 5 of Article 9 of the Federal Law ‘On Limitation of Greenhouse Gas Emissions’ with a positive conclusion from the accredited person on the verification of the results of the implementation of the climate project (verification report).

    The verification report shall be submitted together with the application for the issue of carbon units.


    Carbon unit sale in commodity auction
     

    To effect the sale and purchase of carbon units in a commodity auction on the National Mercantile Exchange, the vendor shall provide Moscow Exchange with an extract from the carbon unit registry issued to the applicant/bidder by the legal entity maintaining the carbon unit registry in accordance with the effective law of the Russian Federation which certifies the rights of the applicant/bidder to a minimum of 50 carbon units and/or quota fulfilment units.

     
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