THIS
POST WAS ORIGINALLY PUBLISHED JULY 26, 2007
IXSP- New Russian Exchange is Under Way
I posted in March this year the announcement by OMX (STO:OMX) of establishment of the IXSP – a new Russian stock exchange that is targeted towards SMEs. It seems that the process is going on. Now the IXSP has its own Web-site – a very simple one, listing major ideas that the promoters are planning to execute.
Speaking of the promoters – they are:
- Stock Exchange Saint-Petersburg (SPBEX), the 3rd largest exchange in Russia.
- OMX - The Nordic Exchange
- RX group of international investors focused on Russia
As the first visible practical step, the IXSP started this week mailing proposals to Russian brokers to sign what is named “Preliminary Agreement” which, according to the mail is the requirement of the Russian Federal Financial Market Services (FFMS) for license application. As the marketing move the mail claims that OMX is already “a member of NASDAQ Group” – I think that is done to attract more brokers as there is no any official NASDAQ-OMX Group sign on respective web-sites. I believe that there is some delay in registration - the IXSP officials earlier announced that they expected to get the FFMS approval by the end of July – the letter asks the brokers to reply by August 7th. Another delay made be the result of difficulties to find a suitable clearing company. This month the press reported that RTS declined the request from IXSP to act as the clearing entity.
The Web-site states among other things that “to prepare for an IPО on IXSP is a fast and cost effective manner unlike on the foreign exchanges”. This is interesting language and I feel that the idea of “fast and cost effective manner” may in some cases lead to not very good results.
Generally speaking the IXSP effort is really good and serve the Russian stock market exceptionally well. But all these activities need to be done in a very cautious way. It had been only about four months since inception of the Closed Joint-Stock Company International Stock Exchange “Saint-Petersburg”. In my understanding it is really tough job to administer all issues in such a short time frame. Of course OMX and NASDAQ may bring a lot of experience, but what about listing agents/NOMADs ? Will Western investors like “fast and cost effective manner unlike on the foreign exchanges” ?
Anyways, everyone is watching the developments and we all hope that they will serve for the better.
- Stock Exchange Saint-Petersburg (SPBEX), the 3rd largest exchange in Russia.
- OMX - The Nordic Exchange
- RX group of international investors focused on Russia
As the first visible practical step, the IXSP started this week mailing proposals to Russian brokers to sign what is named “Preliminary Agreement” which, according to the mail is the requirement of the Russian Federal Financial Market Services (FFMS) for license application. As the marketing move the mail claims that OMX is already “a member of NASDAQ Group” – I think that is done to attract more brokers as there is no any official NASDAQ-OMX Group sign on respective web-sites. I believe that there is some delay in registration - the IXSP officials earlier announced that they expected to get the FFMS approval by the end of July – the letter asks the brokers to reply by August 7th. Another delay made be the result of difficulties to find a suitable clearing company. This month the press reported that RTS declined the request from IXSP to act as the clearing entity.
The Web-site states among other things that “to prepare for an IPО on IXSP is a fast and cost effective manner unlike on the foreign exchanges”. This is interesting language and I feel that the idea of “fast and cost effective manner” may in some cases lead to not very good results.
Generally speaking the IXSP effort is really good and serve the Russian stock market exceptionally well. But all these activities need to be done in a very cautious way. It had been only about four months since inception of the Closed Joint-Stock Company International Stock Exchange “Saint-Petersburg”. In my understanding it is really tough job to administer all issues in such a short time frame. Of course OMX and NASDAQ may bring a lot of experience, but what about listing agents/NOMADs ? Will Western investors like “fast and cost effective manner unlike on the foreign exchanges” ?
Anyways, everyone is watching the developments and we all hope that they will serve for the better.
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