Moscow Exchange Reports Record FX Volumes in June

After posting its 1st half of 2013 derivatives trading volumes results, the Moscow Exchange (MOEX) has released its June FX figures. FX continues to be bright spot for the MOEX as average daily volumes (ADV) during June hit $22.6 billion, an all-time for the venue. Volumes surpassed the previous high of $22.1 billion that was set on January 2009. The breakdown of FX volumes was $9.2 billion for spot (40.5%) and $13.5 billion for Swaps Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Read this Term (59.5%).

The MOEX attributed the record volumes on a combination of rising 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 and changes to FX trading conditions that took place recently. Specifically, the MOEX increased trading hours for USDRUB spot and swap instruments on April 15th by two hours. In addition, the MOEX recently launched CNY instruments which have boosted overall volumes. The yuan launch is part of the exchange’s push of diversifying its product mix beyond RUB instruments which comprise the vast majority of all FX volumes. During June, the MOEX announced that ADV of yuan instruments reached $5.59 million (CNY34.3 million) and on July 3rd, hit a record one day figure of $9 million (CNY55.2 million).

The MOEX added that volumes were also assisted by the increase of foreign market participants as “from the beginning of this year non-resident banks from member states of the Eurasian Economic Community have been admitted to the market within the framework of the project for establishing the Integrated Currency Market of the EEC.” The MOEX explained that “the admission has fostered trading both in key currency pairs, USD/RUB and EUR/RUB, and national currencies when trades in Belarusian ruble and Kazakhstan tenge were made on the Exchange's FX market in June.”