Moscow Exchange Reports Strong Earnings in Q3 Driven by FX

Moscow Exchange (MOEX) today reported its financial results for Q3 2015, showing impressive growth both year-over-year (YoY) and quarter over quarter (QoQ).Total operating income jumped 52.9% YoY and 9.8% QoQ to RUB 11.17 billion. EBITDA increased even more than the operating income, up 66.9% YoY and 15% QoQ to RUB 9.14 billion, while the EBITDA margin was 81.8%. Bottom line, the Russian venue’s net profit increased 71.7% YoY and 16.2% QoQ to RUB 6.98 billion, while earnings per share increased 72.0% YoY to RUB 3.13.

Alexander Afanasiev, Chief Executive Officer of Moscow Exchange, commented: “In the third quarter the Exchange achieved significant top-line growth. Combined with our focus on strict cost discipline, it enabled to achieve an excellent profitability at the EBITDA level. Significant growth of interest income was driven to a large degree by high rouble interest rates. Of particular importance for us is growth in fee and commission income even as volatility on the market has declined year-on-year. This proves the Exchange adapts well to actual market conditions, and that reliable trading and clearing infrastructure and our new products and services are in demand by clients.”

MOEX’s income from the FX Market increased 52.9% YoY to RUB 1.249 billion, as trading volumes rose 70% YoY to RUB 94.99 trillion, driven by increased FX volatility. Spot trading volumes grew 77.6% YoY, while swap trading volumes increased 66.7% YoY which the venue attributes to strong demand for its liquidity-management services.

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Income from the Derivatives Market grew by 20.1% YoY to RUB 437.1 million as trading volumes grew 125.5% YoY to RUB 29.95 trillion. Due to the increased volatility, futures on FX instruments comprised 72.6% of total futures trading volumes at MOEX versus 49.8% in the same period last year.

Evgeny Fetisov, Chief Financial Officer of Moscow Exchange, added: “In the third quarter Moscow Exchange delivered excellent financial results thanks to higher fee and commission income across most of our markets, led by FX, commodity derivatives, REPO with the Central Counterparty as well as increased primary market bond issuance. As interest rates decline we expect to see normalization of interest income, which rose in the third quarter and continues to account for a large proportion of our operating income.”