Moscow Exchange Rolls Out FX Option Contracts for GBP/USD and USD/JPY

Tuesday, 03/10/2017 | 14:18 GMT by Victor Golovtchenko
  • Market making will be handled by Russian investment bank Renaissance Capital.
Moscow Exchange Rolls Out FX Option Contracts for GBP/USD and USD/JPY
Bloomberg

Moscow Exchange is rolling out two new contracts that address a growing demand on the Russian market. Clients of the venue have been expressing interest in trading options on the GBP/USD and the USD/JPY pair.

Russian investment bank Renaissance Capital will be handling the market making aspect of the deal. Owned by Russian billionaire who ran for president, Mikhail Prokhorov, the bank has 14 offices across the globe.

Register now to the London Summit 2017, Europeโ€™s largest gathering of top-tier retail brokers and institutional FX investors

The new offering comes amid increasing demand for trading of the British pound and the Japanese yen. The FX options on GBP/USD and USD/JPY started trading on the MOEX Derivatives Market yesterday, on the 2nd of October.

The strike step on the contracts is 0.005 for the GBP/USD and 0.5 for the USD/JPY pair.

Only one quarterly option series will be traded at any single time. Options will expire on the third Wednesday in March, June, September and December, with the first expiration due to take place 21 December 2017.

The strike step is 0.005 for GBP/USD FX options and 0.5 for USD/JPY FX options. Strikes range between 3.7 percent of the ATM strike for GBP/USD FX options and 4.5 percent for USD/JPY FX options.

Commenting on the launch, the Head of Moscow Exchange's Derivatives Market, Kirill Pestov, said: โ€œOur clients have recently taken an increased interest in futures on British pound/US dollar and US dollar/ Japanese yen currency pairs, so we decided to introduce options on these contracts. The new instrument will complement MOEXโ€™s derivatives offering and enable the implementation of diverse trading strategies.โ€

Since the start of the year, average daily trading volumes of USD/JPY FX futures contracts increased by 40 percent to RUB 885.1 million and those of GBP/USD FX futures contracts rose by 1.7 percent to RUB 589.5 million.

Moscow Exchange is rolling out two new contracts that address a growing demand on the Russian market. Clients of the venue have been expressing interest in trading options on the GBP/USD and the USD/JPY pair.

Russian investment bank Renaissance Capital will be handling the market making aspect of the deal. Owned by Russian billionaire who ran for president, Mikhail Prokhorov, the bank has 14 offices across the globe.

Register now to the London Summit 2017, Europeโ€™s largest gathering of top-tier retail brokers and institutional FX investors

The new offering comes amid increasing demand for trading of the British pound and the Japanese yen. The FX options on GBP/USD and USD/JPY started trading on the MOEX Derivatives Market yesterday, on the 2nd of October.

The strike step on the contracts is 0.005 for the GBP/USD and 0.5 for the USD/JPY pair.

Only one quarterly option series will be traded at any single time. Options will expire on the third Wednesday in March, June, September and December, with the first expiration due to take place 21 December 2017.

The strike step is 0.005 for GBP/USD FX options and 0.5 for USD/JPY FX options. Strikes range between 3.7 percent of the ATM strike for GBP/USD FX options and 4.5 percent for USD/JPY FX options.

Commenting on the launch, the Head of Moscow Exchange's Derivatives Market, Kirill Pestov, said: โ€œOur clients have recently taken an increased interest in futures on British pound/US dollar and US dollar/ Japanese yen currency pairs, so we decided to introduce options on these contracts. The new instrument will complement MOEXโ€™s derivatives offering and enable the implementation of diverse trading strategies.โ€

Since the start of the year, average daily trading volumes of USD/JPY FX futures contracts increased by 40 percent to RUB 885.1 million and those of GBP/USD FX futures contracts rose by 1.7 percent to RUB 589.5 million.

About the Author: Victor Golovtchenko
Victor Golovtchenko
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About the Author: Victor Golovtchenko
Victor Golovtchenko: Key voice in crypto and FX, providing cutting-edge market analysis.
  • 3424 Articles
  • 14 Followers

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