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

Market making will be handled by Russian investment bank Renaissance Capital.

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.

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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.

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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: “Our 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 MOEX’s derivatives offering and enable the implementation of diverse trading strategies.”

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.

 

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