MOEX’s FX Volumes Retreat in September

FX volumes were unable to build on last month's performance, a recurring theme in H2.

Moscow Exchange (MOEX), Russia’s largest institutional trading venue, has released its trading volumes for the month ending September 2017. The exchange’s FX volume was skewed lower on weaker ruble volumes, ultimately paring last month’s double-digit rise.

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The performance at the exchange came amidst a series of global market drivers and volatility in the US and Europe in September. More active markets did not correspond to higher volumes at MOEX in the FX space however, which has been up-and-down throughout H2.

Just one month after seeing sizable growth in FX market turnover, MOEX reported a reading of RUB 26.4 trillion in September 2017, corresponding to a decline of 13.2 percent month-over-month from RUB 30.4 trillion in August 2017.

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The latest figure snaps a recent monthly rebound at the venue – in September 2017, the RUB was largely stagnant vs. both the USD and EUR, which helped contribute to lower trading activity during the month. On a yearly basis, MOEX’s total FX turnover was also pointed lower, registering a retreat of 4.3 percent year-over-year from RUB 27.6 trillion in September 2016.

In particular, September 2017’s total FX turnover also featured spot trades of RUB 6.6 trillion (RUB 6.4 trillion in August 2017) and swap trades of RUB 19.9 trillion (RUB 24.0 trillion in August 2017).

Volumes Rundown

In addition to its total FX market readings, MOEX’s average daily turnover in September 2017 was $21.7 billion (RUB 1259.5 billion), corresponding to a decline of 4.7 percent month-over-month from $22.8 billion (RUB 1,322.1 billion) in August 2017, and unchanged year-over-year from $21.6 billion (RUB 1,253.3 billion) in September 2016.

The stagnant performance at MOEX was not confined to just its FX figures, but was also seen across its derivatives market volumes during September 2017. Indeed, the group yielded a figure of RUB 7.3 trillion for the month, which was also unchanged month-over-month from RUB 7.3 trillion in August 2017.

New contracts satisfy rising demand

Earlier today, MOEX rolled out two new contracts to help address a growing demand on the Russian market. Clients of the venue had been expressing interest in trading options on the GBP/USD and the USD/JPY pairs. Per the new offering, Russian investment bank Renaissance Capital will be handling the market making aspect of the deal.

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