MOEX Reports 9% YoY Drop in Forex Trading in Q1 of 2019

Despite this, fee and commission income increased, driven by the money and derivatives markets.

The Moscow Exchange (MOEX) has reported its financial results for the first quarter of 2019. During the period, the exchange reported a record high fee and commission income from its money and derivatives markets. However, foreign exchange (forex) reported a lackluster result.

Overall, fee and commission income for the Russian exchange increased by 11.1 percent year-over-year to reach RUB 6.1 billion. This was largely driven by the strong performance of the money and derivatives markets as well as its depository and settlement services.

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FX Trading Volumes Fall in Q1 on MOEX

Although the money and derivatives markets reported solid results, the exchange’s FX market didn’t fare quite as well, as, during the first quarter, fees and commission income for the market was RUB 871.6 million.

When measuring this against the first quarter of 2018, which recorded a fee and commission income of RUB 926.2 million, it is lower by 5.9 percent. On a quarter-on-quarter comparison, the first quarter’s result has declined by 11.9 percent.

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The fee and commission income for the forex market is the result of lower trading volumes. During the first quarter, MOEX reported a trading volume of RUB 75.77 trillion. Although this is still a high trading volume, it is lower by 9 percent year-on-year and 9.5 percent quarter-on-quarter.

In order to stimulate institutional trading of large blocks on the exchange’s FX markets, MOEX has launched an experimental USD/RUB order book in April. As Finance Magnates reported, the minimum lot size will be USD 1 million, and the simulated random delay of 2-5 ms will be applied at order entry to eliminate arbitrage between technical access of different trading members.

Total operating income for the quarter was RUB 10.3 billion. When measuring this against the same quarter of 2018, which noted an operating income of RUB 9.9 billion, it is higher by 4.2 percent. The operating income achieved in Q1 of 2019 is also up 2.5 percent quarter-on-quarter.

Net profit, on the other hand, was weaker during the first quarter of this year, both on a yearly and quarterly comparison. Specifically, net profit was RUB 3.1 billion during the first quarter. This represents a fall of 27.8 percent from the net profit of RUB 4.3 billion achieved in Q1 of 2018. It is also lower by 43.3 percent from the final quarter of last year.

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