Moscow Exchange Reports Stable FX Volumes at $377 Billion

Foreign exchange trading out of Russia regained its upward route in October 2020, having risen 23 percent compared with a year earlier. But, at RUB 1.357 trillion ($17.5 billion) a day, it was slightly down in dollar terms from the equivalent in the prior month, a report by Moscow Exchange (MOEX) showed on Tuesday.

Overall, volumes at major institutional platforms were largely depressed by a continuing fall off in spot currency trading, according to industry reports seen yesterday.

MOEX’s total FX market turnover was virtually unchanged at RUB 29.9 trillion ($377 billion) last month, down 1.3 percent month-over-month from $382 billion in September 2020. Compared with volumes from the same month a year earlier, this figure was up 23 percent from RUB 24.2 trillion in October 2019, but the topline increase in nominal Ruble value hides less activity when priced in the greenback.

The average daily volumes in October 2020 reached RUB 1.358 trillion ($17.5 billion), down -2.2 percent in dollar terms against RUB 1.357 trillion ($17.9 billion) in the prior month, Moex said in a statement. Year-over-year, the ADV figure was up 7 percent from RUB 1.053 trillion ($16.4 billion) in 2019.

Additionally, October 2020’s turnover included spot trades of RUB 8.8 trillion ($111 billion), up 54 percent from a year ago, and ‎swap trades coming in at RUB 21 trillion ($265 billion).

Investors’ interest in OTC derivatives trading at Moscow Exchange continued its strong momentum in 2020 buoyed by a steady rise in 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, coupled with a multi-year effort to bring new business to the platform.

According to its recent report, open interest on MOEX’s standardised OTC derivatives market was RUB 667.6 billion at the end of October 2020. Furthermore, Derivatives Market volumes increased by 62.8% to RUB 12.6 trillion compared to RUB 7.8 trillion the previous year.

Moscow Exchange’s derivatives offering lines up 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, FX swaps, cross-currency swaps, FX forwards and options with maturities from three days to five years.