Moscow Exchange Changes Parameters of FX Iceberg Orders

Moscow Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term (MOEX), Russia’s largest institutional trading venue, today announced a package of changes designed to better manage iceberg orders for FX spot transactions, which executes a large volume order into smaller disclosed amounts.

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The MOEX has reduced the required minimum displayed amount of an iceberg order to 1,000 lots from the previously applied 5,000 lots, effective May 22, 2017. The reduced order book transparency associated with iceberg orders aims to boost Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term on big lots, the exchange said.

The iceberg order is a large single order that has been divided into smaller lots for the purpose of hiding the actual order quantity. This allows traders to simultaneously hide a large portion of their order size and signal their interest in trading to the market.

In terms of MOEX parameters, the trader will be required to publicly display only the specified portion, 1,000 lots or 1 million US dollars/euro/yuan etc., instead of the full order quantity which could amount to 100,000 lots or 100 million units of relevant currency.

Last week Moscow Exchange reported its financial results, which saw an operating income of $164.4 million (RUB 9.46 billion) in Q1 2017, lower by 19.4 percent year-over-year from $204.0 million (RUB 11.74 billion) in Q1 2016. On a quarterly basis, the decline was much less pronounced, falling by only 7.5 percent quarter-over-quarter from $177.8 million (RUB 10.24 billion) in Q4 2016.