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Friday, 08 October, 2010 |
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After many years of being paranoid about monopolies (aka communism) in Russia the MICEX monopoly in government fixed income products is actually being broken.
The old arguments that we must have competition were rolled out like a mantra but with MICEX sitting on a very profitable monopoly in government securities, it really just pointed to the States duplicity. Now that other exchanges (read RTS) are allowed to trade government securities we can expect some real competition. The add valorum fees for these securities will almost certainly disappear, (where else in the world does the infrastructure get away with that – well Poland perhaps). DCC will be able to hold government securities in its own right – no more omnibus account at NDC and maybe even futures on government bonds (basis trading here we come).
One more nail in the CBR coffin. Maybe Moscow will get its IFC after all.
Tim Reucroft, Director, Investor Services
treucroft@thomasmurray.com |
