Indices
The MOEX Russia Index and RTS Index are the key benchmarks for the Russian equity market. They are calculated based on the most liquid shares of major Russian issuers. The MOEX index family includes the Blue Chip Index comprising 15 shares of the most liquid and largest capitalization issuers, the Mid- and Small-Cap Stock Index consisting of liquid shares of mid- and small-cap companies, and the Broad Market Stock Index that includes the top 100 Russian companies based on their liquidity and capitalization. The shares covered by the Broad Market Index are used to form baskets of industry indices by dividing its calculation base by sector profiles. MOEX also calculates several industry-specific indices, namely the indicators of a certain market segment not included in the basic line: public sector indices, innovations indices and the MOEX 10 Index. The MOEX bond index family includes the indices of corporate, government and municipal bonds segmented by their duration and credit quality.
Index Rebranding
MOEX completed the rebranding of its entire index offering. At the first stage, in late 2017, MOEX changed the name of the main stock market benchmark: the MICEX Index was renamed the MOEX Russia Index (with a new trading code of IMOEX). The second stage came to fruition on 21 January 2019, when an additional 19 indices were renamed to reflect the MOEX Russia Index brand. The name of the RTS Index remained unchanged. The MOEX Russia Index and RTS Index have identical constituents with identical weightings, but are calculated in different currencies (MOEX Russia in RUB, RTS in USD).
The rebranded suite of indices helps to raise the awareness and value of the Group’s brand and contributes to a more cohesive perception of MOEX and the Russian financial market among domestic and international professional and retail investors.
The trading codes of indices are used on the MOEX website, in newsletters, in the trading systems of stock and forward markets, on the statistical server, in information products and in FAST threads.
New Indicators
MOEX started calculating and publishing a new index tracking performance of the Money Market, the MOEXREPO GCC Index, which is determined based on CCP-cleared repo transactions using general collateral certficates (GCC).
The new index reflects the value of secured money as free of any counterparty risk or the specifics of certain securities issues, and provides for rapid comparison between the rates across different segments of the highly liquid CCP repo market. The MOEXREPO GCC Index has become another gauge in the line of repo rate indicators with CCP with bonds and shares.
In 2018, MOEX developed a new service for calculating the indicative Net Asset Value (iNAV) for asset managers and participants engaged in the roll out and support of structured financial products. This service became especially relevant in 2018 in view of newly introduced regulation of exchange-traded investment funds.
Late in 2018, MOEX launched a new benchmark, the MOEX Russia Index of Russian Liquid Eurobonds, which is the market indicator of sovereign and corporate Eurobonds issued by or for the benefit of Russian issuers. The Index includes the 10 most liquid Eurobond issues of high credit quality maturing in one to ten years, and is calculated based on total return.
MOEX calculates indices at clients’ request. Indices may cover various segments, such as shares or bonds traded both on MOEX and on other foreign platforms. Such indices are widespread globally and are used to implement trading and investment strategies.
International Recognition of Indices
The results of an annual external audit by Ernst & Young confirmed that the Index Management Division complies with the 19 principles of the International Organisation of Securities Commissions (IOSCO)
The audit covered FX fixings, equity indices, government and corporate bonds indices, pension indices and repo and swap rate indicators.
The report confirms the transparency of MOEX’s index management procedures; the high quality of the Exchange’s index generation, calculation, and disclosure process; and the effectiveness of MOEX’s internal controls over the development, calculation and release of financial indices and market benchmarks.