The Moscow Exchange has outlined a list of changes to its FX Market trading and clearing system coming with the next release, which is set for the beginning of December. The most notable additions are of two new currency pairs – the HKD/RUB and the GBP/RUB, adding to an already vast bi-currency basket.
The Moscow Exchange’s FX Market is a Russian ruble liquidity center used by the Bank of Russia to set the official RUB exchange rate based on exchange trading results.
The bi-currency basket involves USD, EUR, CNY, UAH, KZT and BYR with FX swap transactions available from 10:00 am to 11:50 pm MSK. More than 100 members made long-term swap trades in 2013, totaling over RUB 1 trillion.
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The FX Market trading and clearing platform will also provide Cancel on Disconnect (COD) instructions which is particularly popular with price sensitive customers, such as high-frequency traders.
Moscow Exchange’s FX Market is one of the most dynamically developing segments of Russia’s financial market, with its total trading volume increasing 34% YoY to RUB 156 tln in 2013 and growing further throughout the past year, as ongoing market turmoil has been driving substantial volumes to the Russian foreign exchange market.
The update will additionally provide separate client accounts, a separation of member status on Trading Members and Clearing Members and clients will have the ability to enable cross trades. Cross trades can be used by an asset manager to effectively swap assets from one client to another without paying a bid/ask spread for the deal.
The update of the FX Market trading and clearing platform will go live on the 1st of December.