Moscow Exchange FX Trading Volume in January Falls 22% From December's Record

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 (MOEX) released today its total trading volumes figures for the month of January 2014, showing a sharp drop in FX compared to the previous month.

The total FX market turnover in January 2014 at MOEX was just about $372.1 billion (RUB 13,192 billion), a decrease of about 22% compared with the record setting volume for December of last year, of about $476.7 billion (RUB 16.9 trillion).

Despite the monthly drop, the figure still represents a considerable 36% yearly increase compared with January 2013's volume of about $273.2 billion (RUB 8,408 billion).

The January total FX volume was comprised of $157.6 billion (RUB 5,583 billion) in spot trades which accounted for 42% of the total and $214.8 billion (RUB 7,609 billion) in swap trades which accounted for 58% of the total.

The MOEX FX market’s average daily turnover (ADV) in January was also down about 13.5% to just $19.59 billion (RUB 694 billion), compared with the previous month in which MOEX posted its highest ever such monthly figure at $22.66 billion (RUB 803 billion).

Despite the drops in its FX market volumes, MOEX emphasized that increased 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 FX markets in January resulted in a higher trading activity in its FX derivatives business. Additionally, the exchange stated its members showed increased interest in hedging instruments following a sharp fall of the ruble against a basket of currencies.