Moscow Exchange 'Operating As Normal' Amid COVID-19

Moscow Exchange (MOEX) announced in a statement today that it is operating as normal amid high Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term and trading volumes.

“The Exchange is taking all necessary measures to ensure operational continuity of its infrastructure during the Coronavirus Coronavirus The outbreak of Covid-19 or Coronavirus in early 2020 has since redefined the financial services industry. Brokers have been forced to quickly adapt to several changes, both positive and negative.This includes the FX industry, which saw surges in volumes across the retail and institutional space in Q1 2020. This trend can be explained by an outflow of volatility, coupled with countries taking major moves to stabilize their respective economies.In conjunction with uncertainty caused by the virus, The outbreak of Covid-19 or Coronavirus in early 2020 has since redefined the financial services industry. Brokers have been forced to quickly adapt to several changes, both positive and negative.This includes the FX industry, which saw surges in volumes across the retail and institutional space in Q1 2020. This trend can be explained by an outflow of volatility, coupled with countries taking major moves to stabilize their respective economies.In conjunction with uncertainty caused by the virus, Read this Term (COVID-19) pandemic,” the exchange said in a statement.

MOEX has seen a sharp rise in trading volumes across all its markets in recent days, both in the number of transactions and in transaction size.

Strong growth

The derivatives market and equity market have posted the strongest volume growth rates, according to the exchange.

From the start of this year through yesterday, the average daily trading volume (ADTV) on the equity market more than doubled year-over-year and reached RUB 96.6 billion (960,000 transactions). From the beginning of March 2020 through yesterday, the ADTV hit a record high of RUB 152.5 billion (1.7 million transactions), the statement said.

From the start of this year through yesterday, the ADTV on the derivatives market grew more than 65% YoY to RUB 543.2 billion. From the beginning of March 2020 through yesterday, the ADTV reached RUB 842.8 billion (2.7 million transactions), the statement added.

Moscow Exchange’s robust trading, clearing, and settlement technologies have proven reliable in the current market conditions. All group services are fully available to market participants, and all systems are operating as normal, according to MOEX.

Safety measures

MOEX also said that employees had been instructed to work from home to ensure their well-being, as well as to support the operational continuity of the company, adding that employees have all the necessary tools and lines open to continue communicating with clients.

“The Exchange is taking all necessary actions on its premises to protect the health of its employees and to curb coronavirus. It has developed an action plan to ensure continuity of trading processes under a variety of scenarios. Customers are the most important asset for any company. MOEX is in constant touch with market participants and is providing them with consultative and other support to help adapt their business processes to remote operations," MOEX said.