Moscow Exchange (MOEX), the country’s largest exchange has secured its first two corporates, Rosneft and Alrosa, obtaining direct market access (DMA) and trading capabilities on the exchange’s foreign exchange (FX) market.
The development follows after an earlier ruling this year, which enabled Russian entities to operate on MOEX’s currency market with the same terms as banks and brokerage firms – this includes Russian legal entities not qualified as credit institutions or professional market participants.
Rosneft is an active participant of the Russian foreign exchange market, having achieved access to MOEX’s FX Market as one of the exchanges first non-bank corporations. The move will aim to help Rosneft via its direct access to on-exchange liquidity, enhance liquidity management options for the group.
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Liquidity in Focus
The company also is operating under the view that an uptick in the amount of direct access of corporates to the on-exchange FX market will also enhance increase its liquidity, whereby achieving lower transaction costs as well as higher transparency and efficiency.
According to Igor Marich, Managing Director of the FX and Money Markets at Moscow Exchange, in a statement on the access, “The arrival of a new category of clients is in line with global trends; this will boost market liquidity and allow large Russian corporations to enhance their FX operations while maintaining a conservative approach to risk management. We are currently in discussion with a number of other large corporates seeking direct access to FX trading on MOEX.”
“Our admission to the MOEX FX Market will allow us to achieve greater efficiency of FX operations and minimise their costs. Clearing and settlement options offered by the Exchange are convenient and fast. I believe other corporates will also find on-exchange FX trading attractive,” explained Igor Kulichik, CFO of ALROSA.