Moscow Exchange to Double Tick Size in USD/RUB and EUR/RUB Pairs in February
- The rising FX volatility on the Russian ruble market has triggered a recommendation from the FX Market Committee to double the tick size in select currency pairs in order to deepen market liquidity.
According to a company announcement made by the Moscow Exchange, the company's FX Market Committee recommended an increase in the price tick last week for the most traded USD/RUB and EUR/RUB spot currency pairs to RUB 0.001 from the current RUB 0.0005. Rising volatility on the Russian Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term market as both oil prices and the geopolitical environment remain unstable is leading to increased fragmentation of 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 on the Russian ruble currency pairs and is demanding measures from the exchange. According to the company's money market managing director, Igor Marich, "The tick size is an important component of the market microstructure which impacts trading strategies and trading facilities at the exchange. "The larger tick size for the major currency pairs will deepen liquidity at the bid/offer price and will be beneficial to major brokers. It will also harmonize the tick sizes of Moscow Exchange's FX and Derivatives Markets," he explained. The change in the pricing mechanism is going to take effect in February next year. Earlier today, the Moscow Exchange announced that it is allowing foreign liquidity providers into its FX market provided that they meet a certain set of capital requirements.
According to a company announcement made by the Moscow Exchange, the company's FX Market Committee recommended an increase in the price tick last week for the most traded USD/RUB and EUR/RUB spot currency pairs to RUB 0.001 from the current RUB 0.0005. Rising volatility on the Russian Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term market as both oil prices and the geopolitical environment remain unstable is leading to increased fragmentation of 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 on the Russian ruble currency pairs and is demanding measures from the exchange. According to the company's money market managing director, Igor Marich, "The tick size is an important component of the market microstructure which impacts trading strategies and trading facilities at the exchange. "The larger tick size for the major currency pairs will deepen liquidity at the bid/offer price and will be beneficial to major brokers. It will also harmonize the tick sizes of Moscow Exchange's FX and Derivatives Markets," he explained. The change in the pricing mechanism is going to take effect in February next year. Earlier today, the Moscow Exchange announced that it is allowing foreign liquidity providers into its FX market provided that they meet a certain set of capital requirements.