MOEX Continues Momentum in Q2, but FX Trading Slows Down

The Moscow Exchange (MOEX) has published its financial results for the second quarter of 2020 today. The results from the Russian exchange paint a picture of an overall successful period.

Some of the key financial highlights, as outlined by MOEX, is fee and commission income, which increased by 21.8 per cent year on year to reach RUB 7.991 billion. According to the statement from the exchange, this was largely driven by the performance of equities, money and derivatives markets.

Operating income in Q2 of 2020 was RUB 12.028 billion. When measuring this against the same period of the previous year, which had an operating income of RUB 11.100 billion, it shows an improvement of 8.4 per cent. The operating income achieved in Q2 2020 is slightly higher than the first quarter of 2020, rising marginally by 0.3 per cent.

Net profit was on the up by 15.5 per cent during the second quarter of 2020, hitting RUB 6.820 billion during the period. Moreover, net profit rose by 15.5 per cent against the first quarter of this year, showing continued momentum. While adjusted net profit increased by 8.6 per cent against the previous year, coming in at RUB 6.340 billion.

FX Trading Drops From Q1 2020 on MOEX

Taking a look at the exchange’s foreign exchange (Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term) market, MOEX recorded RUB 1.013 billion in fee and commission income. Against the second quarter of 2019, this saw an increase of 14.4 per cent. However, against the previous quarter - Q1 2020 - fee and commission income declined by 5.3 per cent.

Over the second quarter of 2020, MOEX posted RUB 75.194 trillion in FX trading volumes. Year on year this was a fall of 6.0 per cent year on year. Additionally, It was down by 7.0 per cent against the previous quarter.

Commenting on the performance, Max Lapin, Chief Financial Officer of Moscow Exchange, said in the statement: "We are pleased to report another strong quarter in terms of fee and commission income growth. Despite lower Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term compared to the first quarter, our total fee income reached a new all-time high of nearly RUB 8 billion.

“Every F&C business line posted double-digit growth except the Bond Market, which was impacted by a decline in primary offerings due to the uncertain economic outlook. Two fee and commission business lines delivered record highs in absolute terms: Depositary & Settlement Services and the Money Market. The latter surpassed the RUB 2 billion fee mark for the first time.

“We believe that implementation of our strategic initiatives such as extension of trading hours, new solutions for corporate clients and expansion of the product range creates a strong foundation for the further growth of our business.”