Vladimir Gusakov, the Managing Director responsible for Relations with Moscow Stock Exchange Authorities, highlighted a growing risk of insider trading tied to uneven information disclosure within the Russian market. He explained that some market participants, particularly issuers of stocks and bonds, limit or avoid sharing essential data. In contrast, key institutions like the Central Bank, audit firms, rating agencies, and the National Clearing House, a division of the Moscow Exchange, retain comprehensive access to these records.
According to Gusakov, when information is available in only certain categories while others remain opaque, the potential for insider trading increases. He stressed that transparent reporting is crucial for market integrity, especially in a landscape that currently faces practical constraints.
Gusakov called for issuers to reintroduce broader disclosure requirements while introducing prudent restrictions that reflect the present conditions. His stance aims to restore a more balanced information environment without compromising prudential controls or investor protection.
He noted that last year fewer than half of stock issuers and about a third of bond issuers chose not to disclose information. By early February this year, those figures had shifted to more than half for stocks and the same level for bonds, signaling a partial improvement in disclosure behavior but not a full return to full transparency.
In a related assessment, the head of the Moscow Exchange’s Listing Department commented that the market has become less transparent due to some institutional issuers opting not to reveal information to investors, a trend that raises concerns about the efficiency of price formation and the ability of investors to make well informed decisions. The exchange continues to monitor disclosure practices and balance the need for openness with safeguards against market misuse, aiming to preserve investor confidence while maintaining orderly trading conditions.