Simon Crompton
Editor
Shares in Moscow fell by more than a fifth in one day on September 17. The Micex suffered its biggest one-day drop since the 1998 default crisis and was forced to suspend trading. As was the RTS, which fell over 11%. That type of volatility does not bode well for Moscow's stated aim of being an international centre for capital markets by 2020.
Much of the volatility was due to events beyond Moscow's control. And the fact that no one has worked out how much power Russia's president has, alongside military clashes in neighbouring countries, did not help. But one could argue that the biggest block to Plan 2020 is not political or financial. It is legal.
Russia's capital markets need legal and structural reform, including a national securities depositary, criminal enforcement penalties, a better-funded regulator, clearer drafting, insider-trading tracking programmes, listing of foreign shares and easier settlement.