Source: Moscow Stock Exchange
On 24 August 2020, Moscow Exchange will begin trading foreign equities, namely 20 stocks from the S&P 500 Index.
During the next stage of this project (expected in 4Q 2020), the list of stocks will be expanded to 50 names. The Exchange will add more new instruments in future subsequent to analysis of client demand as well as the availability of the regulatory framework for the instruments intended for non-qualified investors.
Foreign stocks will be traded and settled in RUB within MOEX’s robust infrastructure, offering the qualified central counterparty service (by CCP NCC) and record-keeping with the central securities depository (by National Settlement Depository). Dividends on stocks will be set in the currency of the issuer, i.e. in USD for U.S. securities.
Igor Marich, Moscow Exchange Executive Board Member and Managing Director for Sales and Business Development, commented:
“We strive to offer the widest range of services and instruments to our clients and we are continually growing our product line. MOEX has already launched trading in non-Russian securities in the form of ETFs and global derivatives products. Now it is time for foreign stocks; we are beginning with the most liquid shares of the biggest issuers and will add more stocks based on demand from clients. Trading and settlement will be conducted in RUB to allow investors to avoid excess transactions and costs and see their bottom lines directly in their local currency”.
While preparing to trade foreign stocks, individual investors may submit Form W-8 to report income from U.S. securities sales.