Who Russia competitor?


It should be noted that the Russian system of securities trading most suffer from a lack of market liquidity. The main indicator of the liquidity of the trading system is an effective spread - the difference between bid and ask prices of the securities. He also serves as the main quantitative characteristics of implicit transaction costs incurred by investors and issuers, performing operations on an organized market. Experience shows that when a large spread of Russian issuer is extremely disadvantageous to conduct the placement of securities in the organized market, and investors - directly involved in the purchase and sale of securities. Assuming a 100% total return on sales transaction shares, according to the study, its distribution between the main groups of participants were as follows.

Higher trading costs in the long run cause investors to demand more return on capital. All other things being equal, choose Exchange issuers with the lowest costs, as investors on the acquisition of the securities will always discount the purchase price of the trading costs. Thus, the lower the cost of market entry for firms, the greater the economic benefit they will receive from the transaction.

General and especially in emerging markets

The current organization of the trading system in the national markets of developing countries currently faced with common problems of structural inefficiencies.

1. The main transaction costs are passed on to the system of issuers and investors.

2. Having multiple trading systems with open access to the trading system brings into the trade process figure broker with access to the broad-market arbitrage opportunities.

3. The stock space appears in the form board. The market actually exists in multiple systems and measurements: trading system in the country with different technologies and market segments represented by shares of domestic companies traded on foreign stock exchanges.

4. No strategically oriented programs to improve competitive advantage stock exchanges as centers of attracting investment capital.

The problem is that the structural market failure leads to loss of competitive advantage of the national stock market on a worldwide stage. This is equivalent to an outflow of trading activity in the foreign markets through the deployment of new issues of securities to more liquid markets. Pronounced consolidated structure, in addition to Russia, have the stock markets of Ukraine and Brazil.

The stagnation of the Ukrainian stock market has recently become evident. In recent years it has not begun to fulfill its basic function - reallocation of capital to more efficient sectors. In addition, the Ukrainian stock market lost its speculative component and hardly carries out the function of property redistribution.

In fact, the national securities market in Ukraine is "hostage to political events." All forms of privatization of state-owned enterprises is without real size of the money supply. As a result of the pricing mechanism in Ukraine, was originally presented in a distorted form, which affects the situation on the secondary market.

The structure of the stock market like Brazil Russia. Retail space consists of 9 regional exchanges, differ greatly in terms of technological development, the type of trading mechanism and importance in the economy. In recent years, the integration processes in the Brazilian stock market gaining momentum. These changes reflect the evolution of the market in the country - from a fragmented to a centralized form of existence, followed by a vertical diversification vnutribirzhevogo space directed toward national issuers.

In 2000, the country launched a project for the integration of the stock exchanges in a single trade area with a rigid separation of instruments traded on each exchange. According to the project of integration, the largest stock exchange in Brazil, Sao Paulo (BOVESPA) ckontsentriruet transactions in corporate securities. The second largest stock exchange in the country of Rio de Janeiro will be specializing in the government securities market. Concentration of trade corporate securities in one system allows the exchange more efficient output on a stock market. The best known in this respect, the project Novo Mercado (New Market) provides for creation of a separate segment for trading in shares of issuers with high levels of corporate governance.

The system of vertical differentiation is partly already implemented in the Czech Republic. The centralized system of trade of this country provides all the conditions for the entry of new issuers. Differentiation trading on the Prague Stock Exchange is in respect of securities of different investment quality. All securities admitted to trading on the stock exchange, are divided into three groups in terms of the requirements for issuers. Highlighted this segment, as the "new market" (since September 1999), which traded securities with a "short" story. The mechanism of the securities market is somewhat different from the traditional "principal market" and similar methods of trading the U.S. stock exchanges. Most advanced in terms of technology, trading mechanism, which requires an appropriate level of depth and liquidity of the market, only applies to the securities of the "first market" - an analog of domestic blue chips.

Compared to other emerging markets, Russia has good prospects. The main way to increase the attractiveness of the Russian securities market to investors is to create conditions for the improvement of the competitive pricing mechanism for trading instruments.

With appropriate regulatory changes Russia's stock market can be lucrative business area for non-professional investors. In the same conditions existing yield securities may be obtained only through the professional market. That is, the efficiency of the issuer and the investor in the stock market of Russia is determined today, rather, professionalism and business ethics mediator than the dynamics of the market.