Foreign Exchange Trading on Moscow Exchange Halts for 74 Minutes
- Trading on the venue was interrupted between 11:26 and 12:40 Moscow time due to a malfunction in the operation of gateways used to access the FX market's trading system leading to a halt of precious metals too.
(Photo: Bloomberg)
This morning, trading on the foreign 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 and precious metals market on the Moscow Exchange was interrupted for over an hour due to technical problems. Traders lost access to the market around 11:26 local time. After over an hour, around 12:40 in Moscow, the market resumed normal operation.
According to an announcement made by the Moscow Exchange the cause of the issue was a technical malfunction. The company detailed that the operation of gateways used to access the market’s trading system was at the root of the issue.
A specific transaction that balanced risk between the Exchange’s Derivatives and FX markets was executed with an error, which could have led to arbitrage opportunities. Trading on the Moscow Exchange derivatives market has not been affected.
This is the first major outage for the foreign exchange market of MOEX. Earlier this year, participants of the exchange experienced an outage on the derivatives market, with similar issues occuring on MOEX throughout 2014.
The event prompted the exchange to disable the Risk Balancing Service which operates across the derivatives and the FX markets, permitting exchange participants to reduce margin requirements for offsetting derivatives and FX positions through netting of foreign exchange risk.
According to the announcement made by the Moscow Exchange, the service will remain turned off until the root cause of the incident is fully investigated.
The trading interruption affected the Russian ruble market in the immediate aftermath of the disruption as 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 temporarily vanished from the market prompting the USD/RUB pair to gap lower 2% as bids disappeared from the market, but the effect was only temporary with prices stabilizing around 61.60 for most of the session.
(Photo: Bloomberg)
This morning, trading on the foreign 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 and precious metals market on the Moscow Exchange was interrupted for over an hour due to technical problems. Traders lost access to the market around 11:26 local time. After over an hour, around 12:40 in Moscow, the market resumed normal operation.
According to an announcement made by the Moscow Exchange the cause of the issue was a technical malfunction. The company detailed that the operation of gateways used to access the market’s trading system was at the root of the issue.
A specific transaction that balanced risk between the Exchange’s Derivatives and FX markets was executed with an error, which could have led to arbitrage opportunities. Trading on the Moscow Exchange derivatives market has not been affected.
This is the first major outage for the foreign exchange market of MOEX. Earlier this year, participants of the exchange experienced an outage on the derivatives market, with similar issues occuring on MOEX throughout 2014.
The event prompted the exchange to disable the Risk Balancing Service which operates across the derivatives and the FX markets, permitting exchange participants to reduce margin requirements for offsetting derivatives and FX positions through netting of foreign exchange risk.
According to the announcement made by the Moscow Exchange, the service will remain turned off until the root cause of the incident is fully investigated.
The trading interruption affected the Russian ruble market in the immediate aftermath of the disruption as 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 temporarily vanished from the market prompting the USD/RUB pair to gap lower 2% as bids disappeared from the market, but the effect was only temporary with prices stabilizing around 61.60 for most of the session.