The document states that interest generated by client investments forms the bulk of operating income of the exchange: in the 9 months of 2012 this income amounted to RUB 7.7bn, or 48% of operating income.

The prospectus says that in order to make the main market segment more attractive, the exchange plans to introduce Т+2 settlement, which could lead to a drop in client cash deposits.

If lower deposits on the main market is not balanced out by growth in deposits in other markets, the exchange “could end up with less interest-generated income as a result".

A financial market source said earlier that the IPO arrangers forecast a 20% drop in client cash deposits following the introduction of Т+2 settlement.

Stock Exchange MD Anna Kuznetsova said earlier that the initial stage of T+2 will cover 20 Russian blue chips and 39 OFZ issues, later to spread to 50 liquid shares and 39 OFZs, with all securities to be settled in T+2 by end-2013.

The exchange IPO prospectus also mentions the risk of prolonged MICEX-RTS groups business integration. "The success of our business also depends on how we can profit from RTS-MICEX integration, including cost-cutting, synergy profit and growth potential. The integration process (still ongoing) could last longer and cost more than expected”, says the document.

The prospectus says that MICEX-RTS integration also hinges on the harmonization of corporate cultures, fees, trading platforms, processes and procedures, as well as cutting double functions and legal entities.

The prospectus notes in particular the integration and rationalization of trading platforms used by RTS and MICEX prior to the merger. The exchange also optimizes clearing and settlement, leading to axing legal entities from five to two.

Deputy Chairman of the Central Bank, Exchange CEO Sergey Shvetsov said at the Summer 2012 GSM that the Bank of Russia is disappointed with the MICEX-RTS integration results. Financial market sources told Interfax that the prolonged integration of the exchanges became one of the official reasons for President Ruben Aganbegyan’s departure.

In December 2012, international clearing house Euroclear opened a nominee account at the Russian Central Depositary – National Settlement Depositary (NSD, part of Moscow Exchange Group) to gain direct access to the Russian debt market.

The prospectus states that Euroclear’s access will boost Russian asset liquidity. "This extra liquidity, however, could lead to more issuing of Euroclear-oriented bonds, which will drain the potential business volume of our domestic clearing system", reads the document.

Trading infrastructure, Project Group №1