How will the increase in trading time on the Moscow Stock Exchange affect investors? Analysis

Starting from September 22, the start time of bond trading on the Moscow Stock Exchange is changing — transactions can be concluded from 06:50 Moscow time. At the same time, stock trading starts. Prior to that, players were given the opportunity to trade on weekends. According to experts, the Moscow Stock Exchange is taking measures to popularize auctions and increase their volumes. There are suggestions that the trading process may soon be round-the-clock. Izvestia figured out what investors would get and whether the economy would benefit from innovations.

What will change at the end of September

• The Moscow Stock Exchange has decided to unify the start of trading on the stock and bond markets. Previously, the morning session on the debt market started at 08:50, but now it starts at 06:50 — at the same time, stock trading begins. This step is intended to increase the convenience of trading for participants.

• The opening auction in the evening session is canceled in the stock and bond markets. It will now start immediately from the trading period and will be held from 19:00 to 23:50. -

• In addition, a new type of "medium—limit" application, the WLIM application, will appear on the stock market. Unlike the usual limit order, which is executed strictly no worse than the set price, this restriction is lifted for the new type. The limit order entry form provides a choice between the absolute (default) and average price limit. In fact, the WLIM order expands the possibilities of executing a limit order at the desired price. The billing for a WLIM request will be the same as for a regular limited one.

Sleepless mode: US investors are ready to return to the Russian market

The head of the American Chamber of Commerce in Russia, Robert Agee, shared business expectations from the meeting between Putin and Trump.

What happened to the market after 2022

• Morning trading on the stock and futures markets returned to the Moscow Stock Exchange in January of this year. They were suspended in February 2022, when, amid a collapse in quotations, it was decided to stop trading in the morning. The market has undergone major changes: foreign investors have left, private players have provided a significant part of the trading, and fluctuations in quotations have become unpredictable.

• In 2023, the Moscow Exchange index increased for eight months in a row, which is the longest period of growth in its history. By the end of the year, the indicator has added almost 44%. In 2024, the indicator decreased again — the index lost about 7% against the background of sanctions, geopolitical tensions, as well as a high key interest rate. At the same time, inflationary processes still require the Central Bank to maintain a tight monetary policy - so far the key rate has been reduced to only 17%. Such a policy leads to a slowdown in the dynamics of stock markets. But after a fall, there is always growth, experts say, saying that it is important to find a moment when it will be possible to multiply investments in a fairly short period of time during the recovery of the Russian stock market.

• In a message to the Federal Assembly in February 2024, Russian President Vladimir Putin stated the need to double the capitalization of the stock market to 66% of GDP by 2030 (in 2023, Russia's GDP amounted to 172 trillion rubles). By the end of 2023, the capitalization of the stock market alone exceeded 58 trillion rubles. A year earlier, this figure was 38.4 trillion rubles, which is almost half as much. Economists believe that the goal set by the head of state is quite feasible — achieving double capitalization rates by 2030 corresponds to the inadequate development of the market in the current situation. However, without demand and without proper infrastructure, it is impossible to count on such indicators.

Why should the Moscow Exchange trade in the morning and on weekends

• The latest innovations of the Moscow Stock Exchange are within the scope of the task set by the President. Thus, the return of the morning session on the stock exchange was explained by the fact that residents of the eastern regions of Russia would have the opportunity to participate in trading at a more convenient time. In addition, market participants can respond more quickly to changes in global market conditions. Investors have access to transactions with the most liquid stocks, including securities from the Moscow Exchange index and federal loan bonds.

Exiting the "green" zone: what, if not the dollar, do the world's central banks want to invest in

Gold has become the most popular asset

• For the same purpose, weekend trading started on the Moscow Stock Exchange in the spring and summer. From March 1, an additional weekend trading session began to be held on the stock market, and from August 16 — on the futures market (investors were allowed to enter into transactions with all futures except currency; option transactions are available only in the addressable mode). Trades open at 09:50 and close at 19:00 Moscow time and are part of the next "regular" trading day.

• The Moscow Stock Exchange notes that investors have shown their interest in new opportunities. So, over six months, over 1 million private investors concluded deals on weekends. The total volume of transactions exceeded 442.5 billion rubles. The Moscow Exchange is also gradually increasing the number of trading instruments at the additional weekend trading session — on September 6, their number reached 256.

• By the end of July, the number of individuals with brokerage accounts on the Moscow Stock Exchange amounted to 37.8 million, which increased by 603 thousand during the month. In total, private investors have opened almost 71 million accounts. At the same time, they invested 232 billion rubles in securities in a month, which is twice as much as in July last year. Of this amount, private investors invested almost 207 billion in bonds, over 13 billion in stocks, and more than 12 billion in fund units.

• The Moscow Exchange is trying to encourage the population to abandon the savings model of behavior in favor of investments, because then the Russians' money will help develop the economy. And the state has a need for this, since funds from external sources have become unavailable. However, there is now high volatility and uncertainty, which is why investments in exchange—traded instruments are still losing out to the same deposits in banks, where there is a high guarantee of saving funds at attractive interest rates.

What will it give investors

• In terms of increasing market volume and maximizing trader engagement, changes will have a positive impact. Thus, increasing the trading time will be useful for those who are not professionally involved in investments. This is a way to synchronize your investment policy with all global exchanges. But at the same time, the health of professional participants may suffer. These concerns are intensifying against the background of circulating expectations regarding the appearance of round-the-clock trading in the near future, which will threaten professional players with sleepless nights.

• Nevertheless, if the trading process becomes non-stop, and digital platforms allow it, investors will have the opportunity to make a deal at any time, if necessary. In this regard, the transition to round-the-clock trading will contribute to the growth of interest from ordinary citizens, including to the stock exchange. According to experts, round-the-clock trading will reduce the risks of portfolio management. It can also attract foreign participants — without access to the market at a convenient time for them, it is unlikely to count on foreign investment. Nevertheless, before trading is switched to 24/7 mode, the industry will still monitor changes in demand and the actions of the regulator.

When writing the material, Izvestia talked and took into account the opinions of:

• Konstantin Ordov, Director of the Higher School of Finance at Plekhanov Russian University of Economics, Doctor of Economics;

• Igor Didenko, member of the International Union of Economists.

Barrier-free sphere: new foreign investors will be able to withdraw funds invested in the Russian Federation

How will this affect the domestic capital market