Moscow Exchange (MOEX) has published its 2023 financial results, which included a visible growth in trading volumes and fee income from its FX Market. Overall, the net profit amounted to RUB 60.8 billion, significantly increasing compared to the previous year.

Moscow Exchange Reports Growth in FX Trading Volumes and Revenues

According to the report, total trading volumes on MOEX's FX Market reached RUB 328 trillion in 2023, an increase of 22.5% compared to the previous year. The growth was driven by a rise of 31.4% in swap trade volumes, while spot volumes were up 7.5%.

FX Market fee and commission income grew 30.4% year-on-year (YoY) to RUB 7.4 billion. The exchange attributed the faster growth rate in fees compared to volumes to shifts in the trading mix towards less profitable swap trades and the implementation of an asymmetric tariff structure in August 2022 that favors liquidity providers in the spot market.

Additionally, the exchange expanded into digital asset trading, obtaining a license to operate as an information system operator for digital financial assets. It hosted the first primary offerings and secondary market trades of digital assets in 2023.

MOEX Net Profit Jumps 67.5%

The FX Market growth contributes to MOEX's overall positive financial performance for 2023. The exchange reported an improvement of 67.5% in net profit to RUB 60.8 billion, while total operating income elevated 25.3% to RUB 105 billion. The exchange posted strong growth across key financial metrics in 2023. Fee and commission income escalated 39.4% year-over-year to RUB 52.2 billion, accounting for 50% of total operating income.

Several business lines contributed to the improved financial performance. Revenues from financial marketplace services more than doubled, driven by the continued expansion of the "Finuslugi" online platform. The derivatives market also saw a robust 79.2% fee income growth amid increased trading volumes in commodity derivatives.

On the operational side, the Moscow Exchange facilitated over 200 corporate bond issues in 2023, raising over RUB 5 trillion for issuers. The exchange welcomed nearly 7 million new retail investor accounts during the year, bringing the total to 29.7 million.

The exchange approved a new three-year strategy focused on developing the domestic financial market, attracting retail investors, and maintaining ties with international partners. As part of this, Moscow Exchange updated its dividend policy to target a 100% payout ratio of free cash flows.