Fixed Income Focus | Sergey Sinkevich
the Moscow Exchange into a centre for liquidity and price discovery when it comes to trading and investing in Russian instruments. Even before these ground-
breaking changes, Russia’s government bonds were popular with savvy international investors, who were drawn to the country’s attractive returns. Russia’s strong growth fundamentals, low inflation, and low levels of public debt, which in 2012 was at 11% of GDP, make the country’s sovereign bonds an attractive asset for institutional investors. Liberalisation of the matching and post-trading procedures for sovereign debt trading on the Moscow Exchange is going to attract a significant share of the anticipated inflow of international capital into locally traded rouble instruments. Last year, Russia’s fixed income placements enjoyed an unprecedented growth of nearly 30%, driven by two asset classes; municipal and sub-federal instruments and OEX issued bonds – a Russian version of commercial paper. These new issues offer investors a more diversified range of instruments.
As the Moscow Exchange adds sovereign bonds to its T+2 market, Otkritie Capital offers a more cost-effective execution through Direct Market Access (DMA). Fixed income DMA is a new concept in Russia, but we are already the leader in other markets including on the London
Best Execution | Spring 2013
“Russia’s strong growth fundamentals, low inflation, and low levels of public debt, which in 2012 was at 11% of GDP, make the country’s sovereign bonds an attractive asset for institutional investors.”
Stock Exchange International Order Book.
Founded in 1995 and now one of the largest independent financial groups in Russia, we were among the first to recognise new opportunities offered by electronic trading through DMA. Over the past years, Otkritie and our UK subsidiary, Otkritie Securities Limited (OSL), have invested heavily in cutting-edge technology, developing ultra- low latency connectivity and proximity to LSE and the Moscow Exchange. Today, our speed of execution is one of the fastest available on the market. As an FSA-authorised broker and A1 Prime Brokerage services provider, OSL has become the partner of choice
for many of the world’s leading investors.
The new ICSD settlement
producers and fixed income DMA are transforming both trading and post-trading of the Russian market, bringing it to the highest international standards. Russia’s sovereign bond yields and credit fundamentals are as attractive as ever, but the days of the “Wild East” settlement practices are over, giving way to a market more familiar to international investors. Our experienced team, cutting edge technology and unrivalled local knowledge, are ready to help international investors to capture new opportunities in one of the world’s most promising fixed income markets. ■
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