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OJSC "RTS Stock Exchange" (Russian Trading System) is a Russian trading system that conducts trading on the stock market, as well as derivative financial instruments. In December 2011, it merged with the Moscow Interbank Currency Exchange into the MICEX-RTS.
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RTS logo
RTS BOARD SYSTEM
RTS Board is an information system designed for indicative quoting of securities not admitted to trading at the Open Joint Stock Company RTS Stock Exchange (RTS). Securities included in the RTS Board List of Instruments are not publicly traded at RTS trading. Quotations for these securities are not recognized, and calculations of market price and market capitalization are not carried out for them. The main goal of the system: to present investors with promising securities of Russian issuers. RTS Board can be the first step in introducing the issuer's securities to the stock market. The second stage is the admission of the issuer’s securities to trading on the RTS (including RTS START).
The following securities may be included in the List of RTS Board Instruments:
• shares issued by issuers in accordance with the requirements of Russian legislation, in respect of which state registration of the issue (additional issue) of securities and a report on the results of the issue (additional issue) has been carried out or a notification on the results of the issue (additional issue) of equity securities has been submitted; • investment units of mutual investment funds issued by management companies in accordance with the requirements of Russian legislation, in respect of which the rules of trust management of a mutual investment fund have been registered; • bonds issued by issuers, including foreign issuers, in accordance with the requirements of Russian legislation, in respect of which state registration of the issue (additional issue) of securities has been carried out; • foreign financial instruments qualified as securities in accordance with the regulations of the federal executive body for the securities market (within the framework of the RTS Global project).
Types of RTS indices and their values
The RTS stock index combines an impressive range of calculated values. The most used of them is RTS Standard. It is determined based on information about the liquidity of the assets of the country's fifty major companies.
In order for an organization’s shares to be included in this number, they must comply with two main parameters:
- Obtain admission to participate in trading according to the System criteria.
- Have a level of capitalization of the organization’s assets not lower than 0.5% of the aggregate level of all companies on the list from the previous billing period.
The list of organizations is compiled anew every quarter based on the results of business activity.
Exchange traders also consider the values of the RTS-2 indices, volatility, regional and industry indicators . Indicators help to more clearly determine the current market position and predict possible fluctuations. Thus, make this or that transaction in time to obtain the maximum possible profit.
What happened to the stock exchange?
At the end of 2011, it was decided to make a deal to merge the two largest stock exchanges in the Russian Federation: MICEX and RTS. Exchange structures were successfully connected, and technologies and trading systems were perfectly combined, which gave a good synergistic effect.
Now, when trying to access the official website of the RTS exchange (www.rts.com), the search engine will automatically redirect the user to the website of the Moscow Exchange. Now it is the main trading platform in the country.
Speculation
Stock futures are an excellent tool for making profits: you can play on the rise or fall in stock prices in order to make a profit.
For example, you expect that in the future the shares of a certain company will increase in price - then you need to buy futures on shares of this company. If, on the contrary, you expect that the shares will fall in price, then you enter into a contract to sell futures.
The advantage of performing transactions on the futures market is also that when concluding a transaction on a futures contract, the investor contributes only a small fraction of the value of the asset (guarantee collateral of about 10-20%).
Consequently, the investor saves on transaction costs.
For example, you want to buy stock futures, the total contract value is 100,000 rubles.
However, you will not have to pay the entire amount of the transaction, but only the amount of the guarantee, which is 15,000 rubles (this is what the broker will write off from your account). That is, having spent only 15,000 rubles, you actually bought a contract for 100,000 rubles.
FORTS derivatives market
The FORTS market is the largest Russian platform for trading derivative securities (futures and options).
First, let's take a closer look at what futures and options are and how they differ.
Futures are a futures contract that secures an obligation to buy or sell some asset or commodity in the future at a set time at a predetermined price.
An option is a fixed-term contract that secures the right to buy or sell a certain asset (commodity) for a certain period of time at a predetermined price.
In principle, these papers are similar, but there is one significant difference. The option holder is not obligated to make a trade after the option expires. Whereas the futures holder will be obliged to complete this transaction in any case. To make it clearer, consider a simple example.
Imagine that a year ago you bought two securities:
- an option allowing you to buy 1000 shares at 50 rubles per share;
- a futures contract that obliges you to sell 1000 shares at 20 rubles per share.
Both papers are about to expire. At the same time, you know that the shares of both companies have increased in price and cost 100 and 60 rubles per share, respectively.
Obviously, the option is beneficial to you, since you can buy 1000 shares at a price 2 times lower than the market price and make a good profit.
This means that you present it to the seller and receive 1,000 shares for only 50,000 rubles, which, by selling them at the market price, will make a profit of 50,000 rubles.
Futures, on the contrary, are not profitable, since you will have to sell 1000 shares at a price 3 times lower than the market price. That is, you will receive only 20,000 rubles for the transaction, although you could receive 60,000 rubles.
If it were the other way around, and you had a future to buy 1,000 shares of Alpha and an option to put 1,000 shares of Beta, all other things being equal, you would be a winner.
Trading Basics
To start trading on the stock exchange, it is recommended to undergo theoretical training in the basics of this type of activity. This may take some time, since it is unlikely that you will be able to complete the course in a day or even a week.
The features and specifications of the market are quite complex for instant understanding. And the presence of many highly specialized quantities for analysis will require an understanding of the necessary terms.
Among all types of exchanges, the main ones are currency, stock, commodity and futures . All of them are designed for trading certain types of goods. The RTS Index is used to understand the current position of the domestic asset market. The most proven base for trading is the Moscow Exchange.
The subject of transactions on it are futures. That is, obligations to perform certain services or sell goods. Participants in the trade base are the most powerful domestic enterprises, which make up the number of firms for calculating the RTS indicator. And those who could potentially enter it at the end of the billing period.
In contrast to Forex, for each transaction carried out, a corresponding document is issued here. Thus, cases of fraud are reduced to almost zero. So even a novice trader should not be afraid of losing his money for this reason.
The most stable platform for trading in the Russian Federation is the Moscow Exchange
How to become a participant in RTS trading
In the simplest case, you can hire an experienced broker who will conduct trading on behalf of the employer. This will significantly reduce time costs and help avoid losses due to an incorrectly chosen strategy. However, this will lead to a reduction in the amount of income, since the broker needs to pay a fee for each successful transaction.
To trade independently, you will need to study a large amount of information and constantly monitor stock exchange fluctuations. You just need to select the site you are interested in, register on it (sign an agreement) and pay a deposit. Professionals note that if you do not have a starting amount of 10 thousand dollars, it will be very difficult to make a significant profit in the initial period on the RTS. Therefore, it is better to practice on more liquid platforms (for example, on the MICEX).
The RTS Index is an indicator of the state of the country's economy. Based on its value, financial specialists evaluate the success of domestic companies and make forecasts regarding their further development. For exchange players, it serves as an analytical tool for assessing the parameters of the activities of the most powerful holdings in the Russian Federation, and its dynamics show when it is profitable to sell or purchase certain securities.
How is the index calculated?
To effectively make trades, you need to know how the indicator is calculated. Its calculation began in 1995, when the System was launched. The quantity is expressed as a relative value. Since the launch of the exchange database, the index value, by agreement of the participants, was set at 100 points.
The calculation formula for the index is as follows:
K2/K1*100*1.0752559 , where:
- K1 – the value of asset capitalization at the beginning of the billing period;
- K2 – the value of asset capitalization at the end of the calculation period;
- 100 – initial set value of the indicator;
- 1.0752559 – conditional calculation coefficient (constant value).
Proportions of company shares
The value of the RTS index is determined by financial specialists constantly during the working hours of the exchange. To be more precise, every 15 minutes. The calculation is made by assessing information about completed transactions with the assets of enterprises that are included in the list of key RTS companies.
Market participants more carefully monitor not the value itself, but the value of the indicator at the beginning and at the end of trading. And also the value of the maximum and minimum prices for the entire period of exchange activity. Analysis of this information allows us to make a forecast regarding the further dynamics of assets.
The very state of each specific organization, as well as the proportional quantitative ratio of their assets, significantly affects these indicators. An increase or decrease in the number of shares issued for trading is reflected in their value, and, as a consequence, in the final value of the indices.
The RTS index value is determined in real time every 15 minutes
Index changes
The RTS settlement bank at the end of 2021 was about 1,200 points. This value shows that since the introduction of the indicator, the level of capitalization of the economy has increased 12 times. However, the trend itself in the context of past years does not look too positive.
A stable increase in the indicator was observed in the period from 1995 to 2008. The maximum was recorded in April 2011 and amounted to 2134 points. Then, as a result of the global crisis, the capitalization of the assets of Russian companies deteriorated significantly. And to this day it has not returned to its previous level.
The value of shares of the leading players on the stock exchange is currently almost two times lower than the pre-crisis level. The recent sharp jump in the value of the US dollar against the ruble also had a significant impact on the state of the economy.
Electronic trading on the RTS-tender platform
Electronic auction RTS-tender is the most popular form of electronic procurement under Federal Law 44. An application for an RTS tender is submitted in a personal account, which is opened to the participant after accreditation is approved.
The operating bank of the platform is Sovcombank, to whose accounts suppliers transfer the application and contract security. Sovcombank Group acquired a controlling stake in RTS-tender at the end of 2016. Details of the RTS tender differ for participants under 44-FZ, 223-FZ, and property auctions.
The main section of the RTS tender platform is procurement under 44-FZ. More than 1.3 million auction notices have been published in electronic form. Advanced search helps filter auctions by name, starting price, region, amount, customer, dates.
The list of auctions on the ETP RTS-tender is presented in the form of a convenient table. The main parameters are visible at a glance. Tabs help you quickly select the bidding stage. By clicking on the tabs, an overview is formed - procurement is at the stage of accepting applications, being considered, awaiting bidding, or completed with the conclusion of a contract.
The procurement section under 223-FZ for the RTS tender is designed in a similar way, but the procurement search has more parameters. This is due to the large number of variations under the more lenient federal law 223.
The RTS tender platform has a section for selecting contractors for major repairs of apartment buildings in accordance with Resolution 615 of the Government of the Russian Federation.
RTS tender conducts property auctions for the right to conclude a lease, sale or privatization of property. The winner of the RTS tender will have the right to rent premises and buy real estate from a garage to a recreation center from government agencies.
The small volume purchasing section, the so-called RTS-Market electronic store, was created for small tenders, mainly for food, consumables, office supplies and small household appliances.
