The forex market of Moscow Exchange (MOEX), Russia’s largest exchange group, relapsed in July.
Finance Magnates’ analysis of the July 2022 trading volumes shared by MOEX on Tuesday showed a slip away from recovery.
Forex trading volume in the past month reached RUB 17.3 trillion, which is a 3% drop from the RUB 17.8 trillion recorded in June.
Similarly, the forex market’s average daily trading volume (ADTV) declined by 3% to RUB 824.9 billion in July. It fell from June’s RUB 846.8 billion.
In June, demand for forex on MOEX recovered, rising from May’s RUB 16.1 trillion to RUB 17.8 trillion.
While the forex market relapsed, spot forex trades on the exchange rose 10.4% to RUB 8.2 trillion. It grew from June’s RUB 7.5 trillion.
On the contrary, swap trades and forwards on MOEX slumped -12% to RUB 9.1 trillion from June’s RUB 10.3 trillion.
MOEX last Monday announced that it will suspend trading in Japanese yen on its currency markets by August 8 (next Monday).
The exchange said the decision is to help it beat the possible risks and difficulties it could face in settling trades in Japanese yen.
Growth Leaders
From a broader market view, the Moscow Exchange saw a 3% growth in its total trading volumes in July 2022.
Volumes in the past month hit RUB 75.7 trillion, according to MOEX’s data. At the end of June, the volume came in at RUB 73.5 trillion.
This growth spread out across MOEX’s markets thus: derivatives (20.7%), precious metals market (17%) and the bond market (16.6%).
Also, the forex spot market saw a 10.4% increase and the money market saw a 3.8% increase.
MOEX described these markets as the “growth leaders.”
Equity & Bond Market
In the equity and bond market, Moscow Exchange recorded a 3% dip in the total trading volume.
The volume generated decreased to RUB 1,492.7 billion from June’s RUB 1,531.1 billion.
Analysis of provided data shows that the trading volume in shares, depositary receipts and investment fund units fell -16% to RUB 767.7 from June’s RUB 909.3 billion.
The ADTV of this category also fell -18% to RUB 36.6 billion. It was RUB 43.3 billion as of June.
MOEX further explained: “Trading volume in corporate, regional and sovereign bonds went up 16.6% to RUB 725.0 billion (June 2022: RUB 621.8 billion). ADTV was RUB 34.5 billion (June 2022: RUB 29.6 billion).
“Forty-one new bond issues with a combined value of RUB 506.3 billion (of which overnight bonds accounted for RUB 320.2 billion placed in July 2022).”
In May, the Moscow Exchange’s equity and bond market sank -240% MoM (minus overnight bonds), an obvious ripple effect of the Russia-Ukraine war.
The total trading volumes collapsed to RUB 995.4 billion from RUB 3,380.7 billion recorded in the same month last year.
Derivatives, Money and Precious Metals Markets
In the derivatives market, trading volumes shot up by 20.7% to RUB 6.4 trillion compared to June’s RUB 5.3 trillion.
Moreover, the ADTV of the market saw a corresponding 21% increase, reaching RUB 304.4 billion from June’s RUB 252.1 billion.
MOEX’s money market is not left out. It shot up 3.8% to RUB 50.2 trillion in turnover, with the ADV rising 4% to RUB 2,389.6 billion.
“The CCP-cleared repo segment added 4.0% to reach RUB 23.7 trillion, including the GCC repo segment which grew 11.2% to reach RUB 12.1 trillion,” MOEX added.
In the precious metals markets, the spot and swaps trades climbed 17% to RUB 10.1 billion.
Gold claimed the majority share of this turnover with RUB 9.8 billion. Silver received RUB 0.3 billion.
