FX and other derivatives saw record trading at Russia’s largest institutional trading venue last month in a fresh sign that investors are increasingly turning to exchange-traded products in times of market uncertainty.
Moscow Exchange (MOEX) on Thursday said its total FX market turnover jumped 32 percent from a year earlier.
MOEX’s figure for March posted RUB 36.30 trillion ($486 billion), up 50 percent month-over-month from the RUB 24.1 trillion ($366 billion) that exchanged hands in February 2020. Compared with volumes from the same month a year earlier, this figure was higher by a third when weighed against RUB 27.5 trillion in March 2019.
March 2020’s turnover included spot trades of RUB 11.7 trillion ($150 billion), up from RUB 7.2 trillion ($109 billion) the previous month, while swap trades and forwards totaled RUB 24.6 trillion ($316 billion).
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Moex seeks a bigger chunk into global trading
Average daily trading volumes at MOEX’s FX market also rose by 36 percent to RUB 1,727 billion ($31.6 billion) from RUB 1.270 trillion ($19.9 billion) in February 2020. In addition, the ADV figure improved by more than 25 percent from RUB 1,374 billion ($21.1 billion) in the prior year.
The Russian bourse also said trading in other asset classes such as equity and bonds more than doubled in March 2020 to reach RUB 5.18 trillion, up from RUB 2.49 trillion last year.
Overall, total trading volume across Moscow Exchange’s markets grew by nearly 50 percent to reach an all-time record of RUB 98.8 trillion.
MOEX 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. The exchange has rolled out a no-fee model applied to USD/RUB trading, which benefits big liquidity demanders within its FX market.
Also, earlier in 2019, the MOEX started to quote the Japanese yen against the Russian ruble. The move to launch more trading pairs was designed to mirror the global foreign-exchange market and thus attract more clients, the MOEX said last year.