(Originally published at 10:14 GMT, this story was updated with a comment from the MICEX)
The Moscow Exchange (MICEX) has announced that starting today, the tick value for the USDRUB and EURRUB has been raised to RUB 0.0005 from RUB 0.0001. Rufina Baybulatova, International Communications at the MICEX explained “The reason for the mentioned change was requests from market participants. It is not going to affect FX trading in any way, nor will it lead to any changes in the market turnover.”
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Having a contrasting opinion on the change in tick size Igor Suzdaltsev, Deputy CEO at Kalita Finance stated “It will hurt ruble-related algorithmic trading strongly and may lead to significant decrease of spot trading volumes at Moscow Exchange. Also, this situation gives new business opportunity for foreign FX spot trading platforms to acquire ruble-related currency pairs.”
FX trading on the MICEX has been one of the few bright spots in the FX industry during 2012 as volumes are considerably higher than 2011. Therefore, with little friction against their FX franchise it is a little surprising that they made the tick value changes unless the MICEX really believes it will lead to more streamlined pricing and trading. As such, it will be worth keeping an eye on whether the news leads to any other FX changes at the MICEX.