Moscow Exchange to Suspend JPY Trading Due to Settlement Risks

Russia’s Moscow Exchange (MOEX) announced on Monday that it will suspend trading in Japanese yen on the currency markets, effective from August 8, 2022. It cited potential risks and difficulties in the Japanese yen settlement Settlement Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer's name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 Read this Term behind its decision.

The exchange did not provide any definite timeline for lifting the upcoming restriction, only mentioning that it will take all necessary actions for the subsequent resumption of trading in the Japanese yen.

The restrictions will be applied on both spot and swap instruments of the Japanese yen. Currently, the exchange is providing trading with two Japanese yen pairs, one against the Russian ruble and the other against the US dollar - trading in both of them will be halted in the exchange and over-the-counter (OTC) markets.

Further, the Russian exchange will stop accepting Japanese yen as collateral for transactions on the offered markets.

However, it highlighted that the exchange’s obligations Obligations In finance, an obligation is a financial responsibility where the terms of a contract must be met. Should an obligation between parties fail then the party who is at default may face legal action. In this scenario, the guilty party will not only have to agree to pay the set amount to fulfill the contractual arrangement but may also be responsible for covering all legal proceedings cost. Routine payments or outstanding debt of any kind are considered financial obligations, so if someone owes you In finance, an obligation is a financial responsibility where the terms of a contract must be met. Should an obligation between parties fail then the party who is at default may face legal action. In this scenario, the guilty party will not only have to agree to pay the set amount to fulfill the contractual arrangement but may also be responsible for covering all legal proceedings cost. Routine payments or outstanding debt of any kind are considered financial obligations, so if someone owes you Read this Term under the previously executed positions, along with positions taken until August 5, will be honored as per the existing rules.

Chaos on MOEX

MOEX, which is the largest stock trading exchange in Russia, performed exceptionally well, adding 5 million retail accounts in January alone until the Russia-Ukraine war jolted its services. It shut all services for almost a month during the initial days of the war to shed the impact of the conflict on the trading markets.

Though the trading demand after the resumption of services is improving month-over-month, it remains significantly lower than the pre-war numbers.

The exchange is yet to reveal its financials for the months after the start of the war. But, in the first quarter of 2022, it generated a net profit of RUB 8.09 billion, which was a yearly increase of 18.5 percent. Its income from fees and commissions jumped 15.1 percent to touch RUB 10.6 billion.