"The number of new licenses shows a clear trend: they gradually become fewer year after year by all types of business", he said.

According to FFMS data, the end of 1H 2012 showed 1024 active brokers ( 11% less YOY), 1025 dealers (10,5% less), 917 asset managers (12,2% less), 654 depositaries (7,2% less) and 40 registrars (7% less).

"Partly this reflects the market: volumes are not growing. Another factor is the accumulation of volume by major participants and washing out of small and medium-size companies", said Pankin.

He estimates that today 50 majors carry out some 70% stock trading. "The majors` share is growing, however the market is less concentrated than in banking", he said.

Head of FFMS noted that Sberbank (SBER) and Troyka Dialog account for 13% and 7% of trade volume, VTB (VTBR), VTB 24 (GUTB) and VTB Capital - 4% each.

COLLECTIVE INVESTMENT

According to FFMS, the number of participants in private pension funds and mandatory pension insurance in 1H 2012 was 15,6mn, up 21% from the start of the year.

The total volume of pension savings, pension reserves and mortgages in 1H 2012 amounts to RUB 2,862 trillion, including RUB 1,478 trillion in pension savings by the Russian Pension Fund, RUB 732bn - pension reserves, RUB 558bn - private pension funds and RUB 93bn - housing for military servicemen.

Pankin says 1H 2012 saw RUB 154bn of pension funds transferred from the Russian Pension Fund and private pension funds.

At the end of 1H 2012, most of the pension money was invested in sovereign debt (34%, RUB 977bn), corporate bonds (21%, RUB 604bn) and bank deposits (19%, RUB 509bn).

Year-on-year the share of pension money in deposits has increased significantly, from 9% (RUB 197bn). "It is good news, telling us that banks are stable, this is not an investment in some weird promissory notes. On the other hand, it also shows that there is little else to invest in", said Pankin.

According to him, managers today are not willing to take long-term risk, and are not investing in long instruments like shares. This is partly due to the existing limitation of spreading losses.

In 1H 2012 less pension money was invested in Russian shares YOY from 13% (RUB 282bn) to 9% (RUB 249bn). "Private pension funds are major stock market players, needed for the Russian IPO and SPO market boost. Our regulation, however, destimulates pension funds and asset managers from investing in shares. We deserve what we get", says Head of FFMS.

Project Group №1, Dmitry Pankin