Moscow Exchange Continues to See Decline in FX Trading Revenues
- FX commissions drop despite increase in trading volume due to low volatility and general risk environment.
Moscow Exchange (MOEX), Russia’s largest institutional trading exchange, has just released its trading revenues for the second quarter ending June 30, 2017, which shows a decline in FX revenues despite an increase in trading volumes.
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The writing was on the wall when the monthly results were announced for July and these results are basically an extension of those. FX market fees and commissions came in at 964.8 million rubles ($16.08 million), down 6.4% year on year. This was despite the fact that total trading volumes increased by 13.5% during the same period.
Spot trading volumes declined by 21.2% which could be one of the main reasons for the decline in fees and commissions as most of fees are generated through spot trading, as with any exchange.
Most FX volumes at an exchange are generated by prop trading by large companies who are exposed to FX rate risk and hence would look for hedging and Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term management solutions. As a reflection of that, the swap and forward segment showed growth of 29.4% during Q2, which is reflective of the increased risk environment that companies operate in.
Looking at the derivatives market, fees and commissions were down 4.2% year on year as it came in at 481.1 million rubles ($8.02 million). Trading volumes also declined by 25.5% year on year, which was mainly in the FX and index futures segment due to the lack of Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term in the markets during this time of the year.
Volumes in commodity futures increased by 9.3% YoY and options volumes increased by 38.5% YoY, showing increased interest in trading in index options.
With an eye on the growing fintech sector, MOEX also announced the creation of a separate subsidiary that will focus on developing innovative projects and working with fintech startups with potential investments of up to RUB 1.2 billion ($600 million) over the next four years.
Moscow Exchange (MOEX), Russia’s largest institutional trading exchange, has just released its trading revenues for the second quarter ending June 30, 2017, which shows a decline in FX revenues despite an increase in trading volumes.
The London Summit 2017 is coming, get involved!
The writing was on the wall when the monthly results were announced for July and these results are basically an extension of those. FX market fees and commissions came in at 964.8 million rubles ($16.08 million), down 6.4% year on year. This was despite the fact that total trading volumes increased by 13.5% during the same period.
Spot trading volumes declined by 21.2% which could be one of the main reasons for the decline in fees and commissions as most of fees are generated through spot trading, as with any exchange.
Most FX volumes at an exchange are generated by prop trading by large companies who are exposed to FX rate risk and hence would look for hedging and Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term management solutions. As a reflection of that, the swap and forward segment showed growth of 29.4% during Q2, which is reflective of the increased risk environment that companies operate in.
Looking at the derivatives market, fees and commissions were down 4.2% year on year as it came in at 481.1 million rubles ($8.02 million). Trading volumes also declined by 25.5% year on year, which was mainly in the FX and index futures segment due to the lack of Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term in the markets during this time of the year.
Volumes in commodity futures increased by 9.3% YoY and options volumes increased by 38.5% YoY, showing increased interest in trading in index options.
With an eye on the growing fintech sector, MOEX also announced the creation of a separate subsidiary that will focus on developing innovative projects and working with fintech startups with potential investments of up to RUB 1.2 billion ($600 million) over the next four years.