Trading Volumes Drop 11% on MICEX in August

Total monthly volumes decline on Russia’s main stock and derivatives exchange however yearly volumes increase 23%. FX markets were unaffected

micex logoTrading volumes on Russia’s main financial exchange, MICEX, have suffered despite intense volatility this August. The slowdown in volumes is a norm during vacation period, however, market volatility due to the Fed tapering, was keeping traders on high alert. The exchange saw markets increase from a year earlier however, month on month volumes dipped.

The Russian bourse saw total trading reach RUB 38,966 bln (US $1168.82 billion) an eleven percent decline from July figures which reached RUB 43,978 billion. However, on the upside, the trading venue recorded a 23% increase from total traded volume a year earlier.

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In the FX markets, volumes saw little change in total monthly transactions, however, the exchange showed a slight jump in average daily FX volumes with a 5% increase month on month. Interest in the Ruble is a growing phenomenon, and leading FX broker Saxo Bank, launched OTC FX Options in the emerging market currency pair. Didier Abbato, Vice President, Product Management at Saxo Bank, commented about the growth opportunities in the Russian Ruble and said in a statement: “The Russian Ruble is attractive to many investors, and we have now made options trading possible for our clients.”

Trading metrics

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Equities and bonds

  • Turnover in stocks, RDRs, and investment fund units totalled RUB 592 bln (August 2012: RUB 806 bln). The average daily turnover was RUB 27 bln.
  • Total turnover in corporate bonds and OFZs came to RUB 903 bln (August 2012: RUB 915 bln). The bonds market’s average daily turnover was RUB 41 bln.
  • A total of 26 new bond issues (including OFZs) with a combined value of RUB 180 bln were placed during the month.

Derivatives

  • Derivatives market turnover was RUB 3,539 bln (August 2012: RUB 4,414 bln) or 81.9 mln contracts. The derivatives market’s average daily turnover was RUB 161 bln. Open interest increased 14% YoY to RUB 433 bln at the end of August.
  • Futures turnover was RUB 3,272 bln (August 2012: RUB 4,114 bln) while, options turnover was RUB 266 bln (August 2012: RUB 302 bln).

FX

  • FX market turnover in August was RUB 14,886 bln (August 2012: RUB 10,853 bln), including spot trades of RUB 4,621 bln (31% of the total) and swap trades of RUB 10,265 bln (69%). The swap trading volume reached a record in August.
  • The FX market’s average daily turnover was RUB 677 bln.
  • The addition of FX trading to leading retail brokers’ product lines increased the client base significantly, from 6,800 at the start of the month to 40,900 by the end.

Money market

  • The volume of repo trades with the Central Counterparty (CCP) reached a record RUB 367 bln. This service, which allows participants to trade without bilateral limits, was introduced on 5 February, 2013, and now has more than 120 active participants.
  • The volume of trades on the money market was RUB 18,867 bln (August 2012: RUB 13,466 bln). The average daily turnover was RUB 858 bln.

Russian financial products are finding London to be their second home. The London Moscow trading route benefited from enhancements in connectivity last month as Russian financial services firm BCS reduced connectivity between the two financial centres, latency at less than 39 milliseconds.

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