Moscow draws closer as TMX Atrium opens new trading link
TMX Atrium has linked Frankfurt with Moscow
Investors looking to trade in Russia can now take advantage of a new high-speed route from Frankfurt to Moscow, built by technology and connectivity provider TMX Atrium.
The idea behind the new link is to provide access for clients that need low-latency access to the Russian market, which currently represents the world’s sixth largest economy, according to Russian broker Otkritie.
TMX Atrium already had a route between Stockholm and Russia, which was opened in August 2012. The new Frankfurt to Moscow path also links up with the firm’s connection to London, so traders based there can also take advantage of the link to connect to Russia faster than before.
Western capital markets, connectivity and trading technology firms have been keen to access Russia in recent years. In September, BT set out its plans to expand its reach into the country through a new network link with Rostelecom, Russia’s national telecoms operator, improving the opportunities for foreign institutional investors to access Russia’s markets through the BT Radianz Cloud.
Meanwhile, the Russian government has been working to reform the country’s capital markets to make Moscow more appealing to international investors. In November, Russia’s National Settlement Depository was granted central securities depository status, effectively giving market participants the ability to use a single post-trade service for the first time. The move also brought the country into line with Europe and the US, where regulators are implementing rules that will require the centralised clearing and reporting of OTC derivatives.
The creation of a united Moscow Exchange in December 2011 was also part of the same plan to make trading simpler for foreign investors. Previously, trading was divided between the RTS and MICEX exchanges, which traded in rubles and US dollars respectively and operated separate settlement cycles.
“Central and eastern Europe are becoming increasingly important centres for clients seeking liquidity and trading opportunities across multiple asset classes,” said Emmanuel Carjat, head of TMX Atrium. “We are delighted with the client take-up of our Moscow investment and remain committed to offering our members further access around Moscow.”
