08.24.2020

Moscow Exchange Launches Trading In Foreign Stocks

08.24.2020
Moscow’s Plans to Become Financial Center Hit by Ukraine Crisis

On 24 August 2020, Moscow Exchange began trading in foreign equities.

MOEX admitted 20 stocks from the S&P 500 Index. On 24 August, 19 stocks were made available for trading in the main and after-hours trading sessions, with Apple stock to be added on 7 September. The delayed launch is due to the upcoming Apple stock split.

During the next stage of this project (expected in 4Q 2020), the list of stocks will be expanded to 50 names. MOEX will add more new instruments in future.

Foreign stocks will be traded and settled in RUB within MOEX’s robust infrastructure, which includes the qualified central counterparty and record-keeping with the central securities depository. Dividends will be set in the currency of the issuer, i.e. in USD for U.S. securities.

Foreign stocks will be settled in a similar way to Russian securities, i.e. two days after the trade date (T+2) and without full collateral required. Risk parameters for foreign stocks are available on the Moscow Exchange website. Leading Russian brokerages will act as market makers to provide liquidity for the securities on MOEX.

Individual investors may submit Form W-8 to report income from U.S. securities sales.

Source: Moscow Exchange

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