December 3, 2014 at 15:32How to buy shares of Apple, Google and Facebook in Russia
Our blog has previously covered topics on how to buy shares of Russian (using the example of Yandex , which in the summer held the placement of its securities on the Moscow Exchange) and foreign technology companies ( before, during and after the IPO ).
In short, it was not so easy for Russian citizens to buy shares of famous technology companies for a number of reasons, the main of which was the need to conclude an agreement with a foreign broker or look for a domestic company that has the appropriate partnerships. All this complicates the process and translates into additional financial costs.
Now the situation will improve - on November 28, direct trading in foreign securities started on the St. Petersburg Exchange .
To buy US stocks on the St. Petersburg Exchange, you need a brokerage account. You can open it online using this link .
What it is
According to representatives of the Exchange, they felt a demand for stocks of international companies (topics on topics related to foreign securities, one of the most read on the ITinvest blog, for example, IPO material ). That is why a project was launched to provide the opportunity to purchase such shares directly from the Russian exchange platform and with the storage of shares in the Russian depository.
At the first stage, the 50 most liquid shares of leading companies from various sectors of the economy from the S&P 500 list will be admitted to trading. Technological companies such as Apple (we wrote about how stocks behave after the release of new iPhones ) were
among the “pioneers” , Cisco Systems, Facebook, Google, Intel and others. Read also:
Why are Yandex and Mail.ru stocks getting cheaper and what does it mean
All categories of investors, including unskilled - that is, “ordinary people” - will be able to make transactions with these shares on the St. Petersburg Exchange.
Trading will be carried out on the new trading and clearing system, specially developed by NP RTS by order of the St. Petersburg Exchange.
Scheme of work
Trading in foreign securities (abbreviated as PPI) will be conducted daily from 10:00 to 24:00 in two modes - a continuous anonymous auction and a closing auction mode, conducted at the prices of the most liquid exchange markets.
Settlements for tenders are carried out according to the T + 3 scheme (three business days after the transaction date). Execution of transactions is guaranteed by the central counterparty, which is OJSC “IFAC Clearing Center”. The price and settlement currency are US dollars.
See also: What to invest your finances in the conditions of the ruble devaluation
An important moment - trading in securities of foreign issuers will be held according to the market model, the peculiarity of which is that high-frequency algorithmic traders can act exclusively as market makers, providing liquidity to the exchange “glass” rather than “pumping” it out of the market.
How to access
Access to trading in foreign securities can be obtained by brokers clients who are accredited at the St. Petersburg Exchange. ITinvest is on this list. Today, access to this new segment of the Russian financial market is provided in a “trial operation” mode, and starting Monday, December 8th, it is planned to provide such access to all interested customers who have signed a notice of Risks when trading in Foreign Securities.
To be able to purchase securities of well-known foreign companies, you must first open a brokerage account using the form on the website and deposit rubles or currency into it.
We will tell you in detail about the mechanism for purchasing securities, calculating and controlling risks, accounting for transactions and reporting in our next materials.
That's all for today, thanks for watching. We will be happy to answer your questions in the comments.
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