MOEX Signs First MoU with Indian Exchanges, BSE & India INX

The Moscow Exchange (MOEX) announced this Wednesday that it has signed a Memorandum of Understanding (MOU) Memorandum of Understanding (MOU) A memorandum of understanding (MOU) is defined as a nonbinding agreement between two or more parties that outlines the terms and details of an understanding. This includes each parties’ overall requirements and responsibilities. An MOU is seen as the first stage in the formation of a formal contract between two or more parties. These contracts are used throughout many industries, between companies, authorities, regulators, and individuals.At its core, an MOU is not legally binding though is view A memorandum of understanding (MOU) is defined as a nonbinding agreement between two or more parties that outlines the terms and details of an understanding. This includes each parties’ overall requirements and responsibilities. An MOU is seen as the first stage in the formation of a formal contract between two or more parties. These contracts are used throughout many industries, between companies, authorities, regulators, and individuals.At its core, an MOU is not legally binding though is view Read this Term) with BSE (formerly the Bombay Stock Exchange) and India INX, a wholly-owned subsidiary of BSE Ltd, the first exchanges in India to enter into an MoU with the Russian Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term.

According to the statement released today, the ultimate aim of the MoU is to develop a greater understanding of each other’s markets, which will eventually lead to further collaboration between the exchanges, dubbed as the India-Russia Initiative.

Specifically, the exchange companies plan to connect the investor community and companies of both Russia and India, which will facilitate a capital formation platform on a larger scale, the statement said.

MOEX, BSE and India INX Will Temporarily Switch Top Personnel

In order to achieve this, the exchanges have agreed to temporarily transfer senior personnel amongst each other so they can gain an understanding of each other’s markets.

Furthermore, the companies will conduct joint research to further explore the possibility of cooperating in other areas such as cross-listing derivative products, exchange-traded funds (ETFs), fixed income product cooperation and dual listings.

Commenting on the MoU, Shri Ashishkumar Chauhan, Managing Director and CEO of BSE, said: "BSE, India Inx and MOEX are collaborating together to facilitate the development of channels of communication. We strongly believe together we would foster a continuing relationship for the benefit of the financial services industry in India and in Russia."

As highlighted in the statement released today, the BSE, India INX and MOEX each feel that understanding each other’s markets is the premise for bi-lateral investment. They will use the initiative announced this Wednesday as a portal for professional intermediaries to share their experience in order to expand their client network, both within their country and abroad.

“Users of the India-Russia Initiative can have access to a community of professional intermediary networks to benefit their development and cross-border operation,” the statement said.