Despite the Economic Recession, Russian Financial Companies Set the Bar High


Less than 30 years have passed since the collapse of the Soviet Union and the establishment of the Russian Federation. After the first troublesome period Russian economy had been growing for more than a decade. Even though, right now the national economy struggles to return on a “growth track”, it is fair to say that the stock market continues to develop in terms of technological advancement and structural changes.

In 1992, the market economy in Russia was in its infancy stage. Still, that year the “Olma” investment company was founded in Moscow. Lately, It happened to become one of the companies that participated in the establishment of the Russian Trading System (RTS) (stock exchange) in 1995. In 2011 MICEX merged with RTS to create Moscow Exchange (MOEX). Today, Olma representatives participate in the relevant committees of the MOEX.

The company is following the latest trading trends in the Russian stock market. Particularly, it provides individual investment accounts (IIS) to retail customers. It is a sort of a brokerage account, which is easy to open and simple to operate.

The IIS was introduced to the Russian trading sector in 2015, making a trading activity on a stock market widely available. To facilitate the use of IIS, the Russian government added tax deductions for transactions using an IIS. However, it is possible to top up the account with a maximum of 1 million rubles (around $15 thousand) a year.

Olma company offers its clients an opportunity to trade a wide range of assets through the online terminal, provided by the QUIK platform. The list includes bonds, shares, exchange-traded funds (ETF), currency pairs, futures, and options.

 For newcomers, Olmaa offers a series of free seminars covering the basics of stock trading. All users get access to the corporate market analytics, for a better decision-making process.

Top-tier clients may simply entrust their wealth to a personal broker assigned by the company. This type of service ensures a high level of capital security, making it as reliable as a banking deposit, but with higher profitability.

Another example of a successful investment initiative is the Fontvielle firm, which is providing services to wealthy and corporate clients on the Russian and international markets. Its products suite is divided into three groups.

The first class of products consists of investing in the initial public offerings (IPO). The list of companies Fontvielle invested in includes Dropbox, Elanco Animal Health and DocuSign. Currently, the firm aims to participate in the IPO of Revolve, Uber, and Lyft. There are several other instruments, based on securities denominated in different currencies.

For investors with a more traditional approach, the company developed strategies like corporate Eurobonds and bond swaps, a portfolio of dividend shares, and Russian corporate bonds.

There are also products with “the highest reliability” level, including famous Russian federal loan bonds, state Eurobonds, repos with a central counterparty both in Russia and abroad.

Business-minded clients are welcome in Fontvielle as well. The team claims that any company may benefit from using the stock market investment instruments.

For instance, Fontvielle offers a service of currency exchange on the MOEX with the allegedly best available rate, risk hedging instruments and insurance programs for trading derivatives on an exchange.

Fontvieille may be described as a market maker, a broker that can buy and sell stock on a regular and continuous basis at a publicly quoted price.

Last but not least, this investment firm is also participating in the Russian grain trade. It provides liquidity for the grain owner through swap contracts^ marking the result of large progress made by Russian agriculture, with the country being among TOP-3 global exporters of the grain for years.

These examples prove that, despite the long-lasting economic recession, Russian retail investors and business keeps a sufficient level of demand for a qualified financial service, while the financial market manages to adopt new technologies and products.