The instrument on the Moscow Stock Exchange is called the actual subject of trade. They can be the positions marked in Table 6.
Table 6. Instruments of Russian exchanges.
n/a | Name of the tools | Description of the tool |
Stock Market Instruments | ||
1 | Shares of Russian companies | Ordinary and preferred shares. Buying shares allows you to make money on fluctuations in their value and on dividend payments |
2 | Shares of foreign companies | Purchase of foreign shares with payment of only Russian taxes and taxes on dividends on foreign shares. |
3 | Depository receipts | Certificate confirming ownership of shares and bonds |
4 | Mutual fund investment units | Transfer of their funds for investment by a management company by a mutual investment fund |
5 | MCP – mortgage certificates of participation | A mortgage certificate of participation (MCP) is a registered security certifying its owner’s share in the right of common ownership of mortgage coverage, the right to demand from the person who issued it proper trust management of mortgage coverage, the right to receive funds received in fulfillment of obligations, the requirements for which constitute mortgage coverage, as well as other rights. |
6 | ETF | The abbreviation ETF stands for exchange traded fund – an exchange-traded investment fund. Each such fund has an underlying asset, which is stocks, bonds, raw materials, etc. Simply put, it is a tool that represents a ready-made basket of investments. It works according to the following scheme: The management company decides to create a fund. The allocated funds are used to purchase an asset, for example, securities of companies in a certain industry. There is an issue of the fund’s shares, they are sold on the stock exchange. The investor acquires the fund’s shares. Its final profit or loss is determined by the difference in price between the purchase and subsequent sale, as well as the dividends received during the retention period, if the fund’s policy assumes their payment. |
7 | FLB | Federal loan bonds – promissory notes of Russia with payment of coupons. |
8 | Regional and municipal bonds | Promissory notes of regions and municipalities of Russia |
9 | Corporate bonds | Promissory notes of large Russian firms |
10 | MBS | Mortgage-backed securities. Banks also issue central banks to increase the amount of funds in circulation. In fact, they resell debts to third parties for a small percentage. This allows the credit institution to maintain the previous level of business activity, receive additional investments and strengthen its own position in the market. |
11 | Corporate Eurobonds | Eurobonds (or Eurobonds) are fixed-yield debt securities that are traded on the stock market. The difference from ordinary bonds is that they are issued in a currency other than the currency of the state where the issuer is located. The currency for Eurobonds can be any. Large Russian companies can issue Eurobonds denominated in both euros and dollars, pounds sterling or yuan. |
12 | Sovereign Eurobonds of the Russian Federation | Government Eurobonds or Eurobonds are debt obligations of the Ministry of Finance denominated in one of the world’s reserve currencies. |
Derivatives Market instruments | ||
1 | Index futures | Futures is a derivative financial instrument, a contract to buy/sell an underlying asset at a certain date in the future, but at the current market price. Fixing the price of a commodity that will be delivered after a certain period in the future, at the time of the transaction — this is the meaning of a futures contract. For us, futures are interesting with low commissions. |
2 | Stock futures | |
3 | Futures on the volatility of the Russian market | |
4 | Stock futures and investment units of foreign issuers | |
5 | Oil futures | |
6 | Precious metals futures | |
7 | Agricultural products futures | |
8 | Non-ferrous metals contracts | |
9 | Natural gas futures | |
10 | Wheat futures | |
11 | Futures and options on currency pairs | |
12 | RUONIA Supply Futures | |
13 | Futures on the three-month loan rate | |
14 | FLB basket Futures | |
15 | Futures for the RUSFAR bet | |
16 | Options on various indices | Reflects bets on the rise/fall of index futures |
17 | Options on shares of Russian issuers | Reflects bets on the growth/fall of futures on Russian stocks |
18 | US Dollar Options | Reflects bets on the rise/fall of USD futures |
19 | Gold options | Reflects bets on the rise/fall of gold futures |
20 | Silver Options | Reflects bets on the rise/fall of silver futures |
21 | Oil options | Reflects bets on the rise/fall of oil futures |
Foreign exchange market | ||
1 | USD/RUB pair | Selling/buying dollars |
2 | EUR/RUB pair | Selling/buying euros |
3 | CNY/RUB pair | Sale/purchase of yuan |
4 | Also HKD, GBP, CHF, BYR, KZT, TRY, JPY, GLD, SLV and pairs to them | Sale/purchase Hong Kong dollar, British pound, Swiss front, Belarusian ruble, Kazakh tenge, Turkish lira, Japanese yen, goldario (cryptocurrency), silverway (cryptocurrency) |