Published: December 12, 2021
Russia’s Moscow Exchange is primed to receive an influx of participation from Indian investors, after emerging markets broker-dealer Sova Capital partnered with an Indian exchange to provide a bridge between the exchanges.
India INX Global Access and Sova Capital have teamed up to allow India INX customers to trade on the Moscow Exchange (MOEX).
This is Russia’s main trading venue for equities, bonds, derivatives and money markets.
“It is too early at this stage to give specific forecasts for volumes,” Tatiana Primak, prime sales services director at Sova Capital told EMEA Finance. “However, we believe that all indicators are positive.”
She added that the partnership with India INX, “allows us to reach a new level in terms of new client flows, and to improve and diversify liquidity on Moscow Exchange.”
There are around 80 million individual investors on the Bombay Stock Exchange, the parent company of India INX. By contrast, there are roughly 17 million on the MOEX.
Indian investors are active in the global derivatives market, with commodities a particular focus, said Primak. “Access to MOEX will give them another alternative for the diversification of their portfolios,” she added, noting that in 2019, India's National Stock Exchange was the world's largest derivates exchange by volume.
Indian investors have got more access to Russian securities at a time when Russian companies are eager to hold IPOs in their home market. At the end of last year, seven companies held an IPO in Moscow – more than 2020 and 2019 combined.