Moscow Exchange Denies Energobank Had Issues With FX Market

On the 6th of March, Russian bank Energobank turned to the local court in the city of Kazan after experiencing some losses while trading on the foreign exchange markets on the Moscow Exchange.

The bank charged a number of brokers with taking advantage of Energobank’s trading activity on the Moscow Exchange on the 27th of February, alleging a number of trades were irregular.

Today, the operator issued a statement which said, “On the 27th of February all deals on the currency market have been executed in full compliance with the law. The trades which Energobank executed in the USD/RUB currency pair with an intraday settlement, are legal and real.”

"The Moscow Exchange also confirms that its infrastructure has not been subjected to unauthorized access. All of the settlements have been executed during the session have been in full size,” the exchange’s statement continued.

The court has set a hearing date for the 3rd of April.

Apparently, Energobank's trades led to extraordinary Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or 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. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or 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. Trad Read this Term in the USD/RUB currency pair for a couple of minutes due to thin 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. The moves opened some opportunities for a number of market participants.

The bank subsequently decided to block some of the trader accounts, claiming that it was damaged financially by inappropriate trades on the Moscow Exchange, prompting the institution to issue an official statement.

“The exchange is within its right to reveal trade counterparties only when requested to do so by the regulator, which is the Bank of Russia or by legal authorities. In this case, requests regarding brokers and banks who acted as counterparts to Energobank has been received by the Moscow Exchange and information has been presented in accordance with the law,” the statement continued.

“After analyzing the situation and in accordance with the regulator, the Moscow Exchange intends to initiate a process which introduces changes into current legislation, protecting the rights of investors and traders,” the exchange’s position concluded.