MOEX’s Spot FX Tallies with Global Decline, Drops 10% MoM in April

Spot foreign exchange on the Moscow Exchange (MOEX), Russia’s largest exchange group, declined 10% month-over-month (MoM) in April to RUB 7.6 trillion ($96 billion). This tallies with drops in spot FX volumes across major trading venues in other regions.

However, compared year-over-year, the exchange’s spot FX trading grew 8.1%, with swaps and forwards volumes reaching RUB 14.3 trillion ($180.5 billion). Overall, MOEX’s FX market turnover slumped 11% MoM to RUB 21.9 trillion ($276 billion), which is down from RUB 24.7 trillion ($312 billion) a month earlier. Year-over-year, the decrease is only marginal at a decrease of 0.5% from RUB 4.2 trillion ($53 billion).

In addition, the average daily trading volume of forex on MOEX decreased 3% from RUB 1,121.7 billion to RUB 1,093.6 billion. However, when compared to the same period last year, the volume gained 4%, rising from 1,049.1 billion.

Institutional Spot FX Slows across Regions

Meanwhile, Finance Magnates reports that major trading venues in America and Europe reported a significant drop in their spot forex volumes in April 2023. For instance, at Cboe FX, an American spot forex trading platform, volumes declined 29% MoM to $793 billion. FXSpotStream, a New Jersey-based multibank price streaming service for instruments such as forex spot and swaps, posted $1.1 trillion in April, representing a decrease of 28% MoM in spot FX volume.

Furthermore, Germany-based 360T, one of Europe’s largest institutional forex trading platforms, saw its total volumes for April tumble by 21% to $507 billion in March. Moreover, the April total volume is lower than the $530.9 billion generated by the trading platform in February.

In Asia, Tokyo Financial Exchange-operated Click 365 endured the biggest impact with its FX daily futures contracts volume nosediving 43.3% MoM.

How Other MOEX Markets Performed

Moreover, the equity and bond markets, derivatives, money and precious metals markets of MOEX saw lower trading activities in April, pushing the top Russian exchange group’s overall volume 14% lower to RUB 90.3 trillion ($1.14 trillion). For instance, in the equity and bond market, total trading volume, excluding overnight bonds, decreased 5% MoM to RUB 3,186.0 billion.

However, on a year-over-year basis, the volume rose two-fold from RUB 1,446.0 billion. In addition, overall volumes on MOEX when compared YoY gained 2.6%, rising from RUB 88 trillion ($1.1 trillion) from the prior year period.

Meanwhile, MOEX grew its FX market income 35% in 2022 despite a drop of 17% in forex demand during the year.

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