Who Russia competitor?

The increase in the investment component of the securities market depends on the pricing fairness and equity, so - on the possibility of trading systems to serve the needs of their own investors and issuers. Negative impact on the pricing mechanism can provide the organizational structure of the stock space. The overall flow of applications is divided into local segments, and the application of modern technologies of continuous trading in illiquid markets, volatility increases.

About disparities in pricing

Disparities in pricing mechanisms to fully manifest in emerging stock markets, which partly explains the speculative market direction and low activity in the sector IPO. The level of organization of retail space emerging markets can be divided into two groups.

Theoretically, the model of a centralized organization of trade meets the requirements of fair pricing, that is, prices are formed based on the most complete interaction of supply and demand. In this centralized trading systems are more highly automated trading.

Under the influence of technological innovations difference between the two structures is gradually smoothed out. Trading space unifies the directions of integration and subsequent specialization in consolidated markets and vertical differentiation within a single organizer of trading on the centralized market. This reduces distortions in the pricing process.

In the structure of the consolidated price set in the same trading system may differ from the price at which the transactions are in a different trading system. In this case, the links between the organizers of the auction, take on new structural forms. Commission on Securities and Exchange (SEC) to assess the effectiveness of the pricing mechanism in a consolidated market uses the term "fragmentation" of the stock market. In determining the SEC, it is - "the situation when trading a security through a lot of the organizers of the trade in such a way that the participants in a trading system can not fulfill the order presented for execution to another trading system" *.

In the case of the consolidated structure determination of fragmentation can be understood as follows: members of one of the trading system may not want to send an order to be executed in a different trading system, even with the best conditions for the transaction.

Its duapoliya dearer

Features of the structural organization of the Russian stock market may also contain conditions for the development of modern forms of fragmentation.

In essence, the Russian stock market, a situation duapolii: 98% of the total output is generated by the two largest exchanges - MICEX and RTS. The share of the six most actively traded securities in quotation lists of MICEX and RTS, are, respectively, 60% and 69% of turnover (as of early June 2002). The average spread for the most actively traded shares, listed on the two stock exchanges, is to the average purchase price of 0.13% on the MICEX and 0.69% on the RTS (as of 05/31/02 was). This leads to the so-called internalize the flow of requests - broker-dealer organizations redeem a part investor bids for solid quotes from resale on the trading floors with the best price conditions. The fulfillment of customer orders in its own name and for its own account allows the intermediary who has access to the information resources of all trading platforms, implementing its own strategy arbitrage and speculative transactions.