The Moscow Stock Exchange has more than 17 million retail investors

More than 8.0 million retail investors flocked to Russia’s largest institutional trading platform in 2021, opening accounts twice as many as the monthly average the previous year.

Moscow Stock Exchange (MOEX)

The Moscow Stock Exchange (MOEX) said in its monthly report that the number of retail investor accounts hit a milestone of 17.4 million, compared to 8.8 million traders a year earlier.

The number of retail investors holding so-called Individual Investment Accounts (IIAs) reached 5 million at the end of January 2022. They injected 262.3 billion rubles, or nearly $3.46 billion, into the Volatile January trading, of which stocks made up 85.5%, while bonds and ETFs made up 14.5%.

According to the monthly MOEX report, private investors who made at least one transaction last month reached a record 2.8 million. Overall, retail investors now hold 28.8 million brokerage accounts on the Moscow Stock Exchange. They accounted for 41.2% of stock trades, 17.8% of bond trades, 12% of spot currency trades and 42.9% of derivatives trades.

“In January 2022, individuals invested 101.7 billion rubles in stocks, 2.1 billion rubles in ETFs and 26.3 billion rubles in bonds. Government bonds accounted for the largest percentage of total bond investments (67%), followed by corporate bonds (17.3%) and Eurobonds (15.7%),” the exchange noted. .

However, the MOEX did not explain why there was a jump in retail activity throughout 2021. But, amid concerns about the economic impact of the coronavirus outbreak, there was a brighter side to all trading platforms, which attracted a rush of investors as investors rushed in. to protect wallets.

Moex responded to Covid-19 with worrying volatility

Since 2015, Moex has allowed private investors to open an IIA with a broker (brokerage account) or an asset management company (via fiduciary management).

Money can be invested in MOEX securities market instruments, such as forex, stocks, government and corporate bonds, as well as ETFs and mutual funds. Along with other asset classes, the forex market has reacted to the COVID-19 pandemic with worrying volatility.

Russia’s largest stock exchange, renamed MOEX Group, has established itself as a primary destination for institutional currency trading in recent years and has helped facilitate a dramatic increase in the number of retail investors.

More recently, the exchange increased its stake in BierbaumPro AG, whose main asset is the OTC FX platform NTPro. The transaction increased MOEX’s stake from 29.5% to 95. In March 2020, the Russian mega exchange bought a minority stake in BierbaumPro AG as part of a deal to bolster its foreign exchange franchise. At the time, the two parties had agreed to consolidate MOEX’s ownership of up to 100% of BierbaumPro’s equity over three years.

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