The Moscow Exchange’s PR department was busy last week as the firm released Q1 2013 income figures as well as announce two FX related news items. For the quarter, Net Profit increased by 21.1% YoY to RUB 2.56 billion on a 8.6% gain in YoY Operating Income of RUB 5.52 billion. Total trading volume across all markets was up 16% YoY and totaled RUB 83.8 trillion. The exchange also reported that Assets in Custody increased to RUB 14.2 trillion as of March 31, 2013 from RUB 11.9 trillion as of December 31, 2012.
In its FX division, the Moscow Exchange reported Fees & Commission income increasing 9.1% YoY to RUB 487.0 million. Trading volumes on the FX market totaled RUB 27.5 trillion up 10% YoY. However, despite the increase in volumes, the exchange stated that spot volumes fell to “due to relatively low exchange rate volatility”, with activity being offset “by an increase in swap trading volumes”.
Commenting on the results, Alexander Afanasiev, Chief Executive Officer of the Moscow Exchange, said, “2013 got off to a strong start. Our own successful IPO in Moscow underscored that international investors are willing to participate in sizable offerings executed entirely in local shares in Russia.” He added that “the first quarter of 2013 has again underscored the strength of our strategy. The merger of MICEX and RTS diversified our business and helped us to grow in a volatile environment. And we are well placed to continue developing financial market infrastructure to benefit market participants and investors.”
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Last week, the Exchange also announced that it had set a record in trading volumes for its CNY/RUB product as well as launching a new FX RUB indicator. In regards to the CNY/RUB, on May 28th, total spot and swap volume of the contract totaled RUB 176.4 million ($5.56 million). The volume was an all-time record for the product that was launched in 2010. The Moscow Exchange also mentioned that May average daily volumes in the CNY/RUB were double the same period last year.
In addition to the CNY/RUB news, the exchange announced that it is launching a new Ruble Fixing. The price is a joint project with EBS where the two firms will launch and publish the “International Ruble Fixing that is an average value of the Moscow Exchange Ruble Fixing and Fixing EBS, both of which are calculated by a unified methodology”. The fixing price will be used to price underlying ruble derivatives. The Moscow Exchange added that “the move aims to enhance the attractiveness of the on-exchange FX trading as the pricing hub for the ruble”.