MOEX FX Turnover Fall 10% Amid Mixed Institutional Interest

Moscow Exchange (MOEX) today said average daily trading volumes of currencies fell in September compared to the previous year, as an uptick in global trade tensions may have rattled the Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term marketplace at Russia’s largest institutional trading venue.

MOEX, which runs one of the largest FX trading platforms, revealed that its total FX turnover came in at RUB 25.1 trillion ($384 billion), falling by 9.4 percent month-over-month from RUB 27.8 trillion ($416 billion) in August.

In addition, the latest reading corroborates a mild drop in volumes at the exchange versus a year earlier, as the figure fell by 7.4 percent from RUB 27.1 trillion in September 2018.

MOEX enjoyed a surge in FX volumes to fresh highs earlier this year, although the growth appears to have slowed considerably over the summer.

Institutional platform show mixed performance

Meanwhile, MOEX’s FX market’s average daily turnover in September 2019 was RUB 1,193 billion ($18.4 billion), corresponding to a drop of 5.5 percent month-over-month‎ from RUB 1,262 billion ($18.9 billion) in August. This figure was also lower by 12 percent year-over-year from RUB 1,357 billion in the prior year.

The Russian bourse said trading in other asset classes such as precious metals (spot and swaps) slumped sharply to RUB 1.9 billion, nearly five times lower the volumes reported in September 2018, which came at RUB 9.9 billion.

Lower 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 also helped fuel double-digit decrease in FX trading volumes at Cboe, the largest options exchange in the United States, and FXSpotStream’s trading venue, the aggregator service of LiquidityMatch LLC. Other institutional venues, however, have since reported growth in turnover, including Integral’s trading platforms, which disclosed a surge by more than ten percent in September.

CLS, a major settler of trades in the FX market, is set to report the average daily traded volume submitted to its platform later this week after August’s figures reflected a zero change when weighed against the figures of July.