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26 August 2010

RTS and Avtodor ink memorandum of understanding and cooperation

On August 26, 2010 the RTS Stock Exchange (hereinafter Stock Exchange) and the Russian Highways State Company (Avtodor) announced the signing of a memorandum of understanding and cooperation which signaled the beginning of strategic business partnership on a long-term and mutually advantageous basis.

According to the memorandum the parties agreed to cooperate on the following avenues:

  • design, introduction and development of financial planning mechanisms with the use of stock, futures and options, and merchandise market instruments:
  • drafting proposals and holding events to arrange for initial placement and secondary trading in Avtodor securities;
  • implementing projects to raise Avtodor investment attractiveness;
  • designing mechanism to optimize purchases of individual construction materials used in construction (reconstruction) of Avtodor objects;
  • risk hedging with the use of financial derivatives in trading on the time market sector of the Exchange.
 The memorandum stipulates the creation of a permanent taskforce. “We are very glad to begin cooperation with Avtodor State Company,” said RTS Board Chairman Roman Goryunov. “The memorandum confirms the major interest of the state company in the use of stock exchange infrastructure for the implementation of its development strategy.”

The RTS Stock Exchange was founded in 1995 and is a leading market in futures and options trade in Eastern Europe. It provides a broad range of possibilities to trade bonds, shares, and derivatives to Russian and foreign investors and professional stock market participants. The Russian Highways State Company (Avtodor) was created in compliance with the federal law #145-FZ of July 17, 2009 on the Russian Highways State Company and on amendments to individual laws of the Russian Federation and has to support and develop the network of roads transferred to trust management by Avtodor and raise the quality of services provided to road users.