For the second week, the Moscow exchange has been successfully trading shares of newly listed foreign companies. It would provide access to shares and depositary receipts from an additional 20 international companies as a part of the long-run strategy to expand its foreign share offering. “In the future the exchange will widen the list of available assets, analyzing client demand and also the wishes of banks, brokers and management companies,” officials said in a statement.
The trading of new shares, which will include Tesla, China’s Alibaba and Baidu, Ford, PayPal, Walmart, General Motors, AbbVie, Adobe, American Airlines Group, Baidu, Biogen, Bristol-Myers Squibb Company, Broadcom, Cisco Systems, Electronic Arts., FedEx Corporation, General Electric Company, HP, Newmont Goldcorp Corporation, and Qualcomm Incorporated, will bring the overall number of foreign issuers’ securities on the Moscow bourse to 40. Importantly, the shares of foreign issuers will be traded and settled in rubles, but dividends on US securities will be paid in US dollars.
Private investors can fill out an individual identification form (W-8) to reduce the taxes when paying dividends on US securities.
Perhaps this is a great achievement for Russian financial officials that shares of 40 foreign companies have been listed on the Moscow Exchange but these figures do not impress big brokers. For example, clients of InstaForex, an international brokerage firm, have access to almost 90 shares of the world's largest companies.
