Moscow Exchange to Boost Liquidity by Doubling Tick Size on Ruble Crosses

Starting from next Monday, the 2nd of February, the Moscow Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term is going to increase the tick size on its major Russian ruble crosses in order to boost Liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term on the marketplace.

The Moscow Exchange made the announcement that it intended to do so back in December, as the local foreign exchange market liquidity situation had become increasingly challenging.

The price ticks for USD/RUB, EUR/RUB and GBP/RUB spot FX pairs will be doubled to RUB 0.001 from the current tick size of RUB 0.0005.

Overnight, Russia's credit rating got downgraded to below investment grade by S&P, while Fitch and Moody's have placed their ratings "under review".

The Russian ruble lost almost 6% in trading yesterday in the aftermath of the announcement, as worries about further deterioration in Eastern Ukraine have also played their part in the decline.

The Managing Director of Moscow Exchange's Money Market, Igor Marich, said, "We are increasing the price tick for major currency pairs in response to demand from market participants. The price tick is an important market parameter that affects trading strategies and the convenience of trading on-exchange."

"The larger price tick will boost order book liquidity and bring Moscow Exchange's FX Market in line with our Derivatives Markets, where the price tick is already RUB 0.001," he explained.

The price tick will remain unchanged for other spot FX instruments and swap deals.