MOEX’s FX Turnover Rises 19pc as Institutional Venues Rebound

MOEX’s FX market turnover edged higher to RUB 25.0 trillion ($349 billion) last month from RUB 20.0 trillion in May.

Currency trading at Moscow Exchange (MOEX) regained its upward route in June buoyed by a steady rise in volatility, coupled with a multi-year effort to bring new business to the platform, though volumes remained well below its 2020 peak seen in March.

June was a particularly volatile period for global financial markets as investors ramped up bets on new stimulus measures from central banks to combat coronavirus risks. The MOEX numbers also followed stronger trading volumes from rival foreign exchange venues.

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MOEX’s total FX market turnover edged higher to RUB 25.0 trillion ($349 billion) last month, up 19 percent month-over-month from the RUB 20.0 trillion exchanged hands in May 2020. Compared with volumes from the same month a year earlier, this figure was virtually unchanged when weighed against RUB 24.7 trillion in June 2019.

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FX volumes also rebound at rivals

Average daily volumes in June 2020 reached RUB 1.251 trillion ($18.1 billion), up 13 percent against RUB 1.107 trillion in the prior month, Moex said in a statement. Year-over-year, the ADV figure was down 11 percent in dollar terms from RUB 1.3 trillion ($20.3 billion) in 2019.

June 2020’s turnover included spot trades of RUB 6.6 trillion ($92 billion), up 23 percent from a year ago, and ‎swap trades coming in at RUB 18.4 trillion ($257 billion).

FX trading on Russia’s mega bourse, as well as on those of its competitors, has had a record start to the year as a rise in volatility from multi-year lows and a flurry of policy changes supported more currency transactions. Even before that, the exchange’s FX volume was able to recover from recent lows as it continues to develop its infrastructure as part of a state-backed drive to make Moex one of the world’s leading financial hubs.

After several lackluster months, the latest metrics from major institutional spot FX platforms show the FX market has bounced back with hefty jumps in daily trading volumes. This, however, led some retail investors to experience slowness and technical issues related to heavy trade volumes. Due to higher than usual volumes, free trading app Robinhood experienced a system-wide outage on June 18.

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