2024 Group strategy
In October 2019, the Supervisory Board of Moscow Exchange approved a new Group development strategy through 2024.
The new strategy is based on five key priorities, two of which relate to areas of responsibility, and three to areas of development. The priority areas are two areas of responsibility: deepening major markets and engendering a culture of trust and responsibility.
The Exchange remains the leading center for pricing Russian assets and the main capital-raising platform for Russian companies. In this area, the Exchange will continue to expand accessibility, trading hours and its range of products and services, and will maintain its offer at the level of other leading international exchange platforms. MOEX will focus in particular on working with investors and issuers, to encourage companies to access capital markets through share and bond placements, as well as diversifying the range of instruments available in the derivatives market, and working with market data.
In developing a culture of trust and responsibility, the Exchange will focus on accelerating business processes, reducing the time to launch new products and increasing the cyber resistance of key systems. To reach the next level in this area, the Group will focus on developing talents and leaders by delegating authority on a wide range of business development issues.
Further business growth will be supported by initiatives in three areas of development: market access, balance management and financial platform. These are an organic continuation of the previous strategy, based on the strengths of the Group’s business model and the key competencies of its employees.
The Exchange will give professional participants and consumers access to a wide range of investment and savings products with the focus on creating services that will provide banks and brokers with new opportunities to promote their services, and individuals with interfaces to access the financial market in a single information field. This will double the base of private investors over the medium term.
In terms of balance management, the Group will provide professional participants and corporations with flexible services for finding liquidity, executing orders and post-trading in a single interface. This will increase the user base and liquidity in the Money, FX and Derivatives Markets, including the Standardized Derivatives Market.
Development of a financial platform means extending the capabilities of the Exchange’s accounting infrastructure to a wider range of financial assets. Initiatives in this area will lead to the expansion of the NSD’s service offer for savings instruments and information assets.
Consistent implementation of the strategy across these five key priorities will allow the Exchange to achieve a significant increase of its client base, contribute to the further development of the market, expand availability of financial services for private investors and issuers and stimulate the use of best practices, while maintaining high efficiency and profitability of the business model.
MISSION, AREAS OF RESPONSIBILITY AND AREAS OF DEVELOPMENT
|Strategic focus||Financial risks||Non-financial risks|
|Financial platform||Project launch dates may depend on the adoption of appropriate regulatory standards. There is a risk of changes in the dates when standards come into force, which may affect project revenues.|| |
When introducing new technologies during the implementation of new initiatives, the following may increase:
– personnel risks given that current employees may not have the relevant skillsets;
– operational risks associated with the introduction of new products and processes in existing infrastructure.
The Exchange will also need to improve its compliance system to work with new partners and customers as part of development initiatives.
|Balance sheet management||Launching projects from scratch, including in new segments for the Exchange, may result in underestimated expenditures in business planning.|
|Market access||Price competition in new areas may increase, which may lead to a decrease in demand for services provided as part of new initiatives.|
|Development of key markets||Some products launched by the Exchange to develop its key markets, including those launched based on studies of international experience, may appear to be not in demand in the local market.||Attracting new investors may lead to increased operational risks associated with the introduction of new products and processes in existing infrastructure, as well as with the absence or insufficiency of the necessary financial and human resources, materials and equipment.|
|Culture of trust and responsibility||Lack of involvement and responsibility of employees may lead to financial losses as a result of project delays and operational errors in the normal course of business.|