MoEx Reports Solid Financial Performance Figures for Q3 2014

Moscow Exchange (MoEx) has announced its financial results for Q3 2014. Total operating income rose 16.3% YoY to RUB 7.31 bln (~$156 million). Net profit increased 42.4% YoY to RUB 4.06 billion (~$85 million); earnings per share (EPS) increased 41.1% YoY to RUB 1.82.

Other notable highlights from MoEx's report include the euro becoming eligible as collateral on Moscow Exchange's Derivatives market from October 13. The list of assets eligible as collateral previously included the RUB and USD, as well as stocks and bonds.

Alongside the publication of results, MoEx Chief Executive Officer (CEO), Alexander Afanasiev said:"We are happy to report a second consecutive quarter of record net profit and operating income, demonstrating both the resilience of our business model to the challenging economic and market conditions, as well as our effective cost management."

In a bid to woo international investors and trader participation, Russia's largest Stock Exchange says it is "continuing to upgrade Russia's market infrastructure and to developing the Group's product offering." The trading venue is intent on consolidating its position in the domestic market and expand via foreign participation. The venue did however raise margin requirements earlier this month.

Mr. Afanasiev added, "We continue to benefit from our diversified and vertically-integrated business model. New products on our FX and money markets, as well as post-trade services, which were recently introduced, contributed to our impressive results in the third quarter. Our latest innovation was to establish a link to International Securities Depositories, aimed at bringing the Russian financial markets in line with best international practice."

As part of MoEx's strategy to internationalise, the trading venue is looking towards China and the expanding RMB market that is gradually being readied for full liberalisation at some stage over the next decade. MoEx cites its cooperation agreement with the Bank of China as part of the company's strategy to expand its activity in CNY/RUB trading.