Moscow Exchange to Launch Precious Metals Trading

The Moscow Exchange (MOEX) announced that it intends to begin offering precious metals trading later this year. Expected products will include spot gold and silver contracts denominated in rubles per grams as well multi-duration swaps contracts. The new precious metals products will fall under the MOEX’s FX trading division with trades consolidated, settled, and cleared within the unit’s Risk Management Risk Management One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, Read this Term system.

In launching the product, the MOEX is touting the hedging opportunities, cost advantages, and credit infrastructure market participants will have access to. According to the MOEX, the “this new marketplace private investors will enjoy a new instrument serving as an alternative to OTC trading with impersonal metal accounts and offering minimum spreads and short selling opportunities”. The metals trading also fits within the exchange’s goal of appealing to a broader global audience as they bolster to strengthen their status of the premier venue for trading ruble denominated derivatives and FX contracts.

However, when asked about the potential of the product launch, a member of an internationally based large Russian broker whose firm is prominent player in FX trading, but was unauthorized to speak, told Forex Magnates that he was skeptical about the precious metal trading outlook, saying “I am personally doubtful that they will generate significant 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, difficult to see what value this adds in a global context and not convinced there is much in the way of local demand. They do put up a lot of new contracts, often on a quite speculative basis – liquidity remains concentrated in very few.”

Inquiries to the MOEX about liquidity and demand were unanswered by publishing time.