FX Trading Volumes at Moscow Exchange Show No Signs of Letting Up

FX trading sustained strong volumes at Moscow Exchange (MOEX) during July, as investors’ interest roared back from the depths of the Covid-19 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, according to a monthly report from Russia’s largest institutional trading venue.

Today, MOEX said its total FX market turnover jumped 10 percent from a month earlier.

MOEX’s figure for July posted RUB 27.5 trillion ($373 billion) from the RUB 25.0 trillion ($349 billion), which exchanged hands in June 2020. This is compared with volumes from the same month a year earlier, though this figure was lower by 7 percent when weighed against RUB 29.6 trillion in July 2019.

July 2020’s turnover included spot trades of RUB 7 trillion ($95 billion). This surpassed the RUB 6.6 trillion ($92 billion) in the previous month, while swap trades and forwards totaled RUB 20.5 trillion ($278 billion).

In terms of the average daily volumes in July 2020, the metric printed RUB 1.250 trillion ($17.5 billion), is virtually unchanged form 1.251 trillion ($18.1 billion) in the prior month, Moex said in a statement. Additionally, year-on-year, the ADV figure was down 3 percent from RUB 1.287 trillion or $20.4 billion in 2019.

Investors’ interest in OTC derivatives trading at Moscow Exchange (MOEX) continued its upward route in 2020 buoyed by a steady rise in volatility. This was coupled with a multi-year effort to bring new business to the platform.

MOEX Buys 17% Stake in eFX Platform BierbaumPro

According to a recent report, open interest on MOEX’s standardised OTC derivatives market was RUB 547 billion at the end of June 2020. This figure was up 25 percent year-on-year from RUB 436 billion.

Russia’s largest bourse attributed the growth to its new products and upcoming regulatory changes, which helped increase the share of interest Swaps Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Read this Term in total market turnover to 40 percent. Moscow Exchange’s derivatives are offering lines up swaps, FX swaps, cross-currency swaps, FX forwards and options with maturities from 3 days to 5 years.

MOEX, in particular, continues to develop its infrastructure as part of a state-backed drive to make Russia’s largest institutional trading venue one of the world’s leading financial hubs. Most recently, the exchange acquired a minority stake in BierbaumPro, which owns proprietary OTC FX platform NTPro.