About the FX Market
Moscow Exchange's FX Market is Russia's oldest regulated FX trading venue, operating since 1992. The market is the primary liquidity center for the rouble and a core component of the national financial system. In 2014 on-exchange operations accounted for approximately 50% of USD/RUB trading in Russia and 64% of EUR/RUB trading. The Bank of Russia, the country's central bank, implements monetary policy via Moscow Exchange as well as using the results of trading to set the official USD/RUB exchange rate.
Moscow Exchange's USD/RUB fixing is used to calculate settlement prices of exchange-traded USD futures. Since January 2014, it has also been used by Russia"s National Foreign Exchange Association (NFEA) to compute the NFEA FXSWAP Rate.
Moscow Exchange Group's convenient and unique trading and post trading infrastructure includes integrated trading, clearing, settlement and information services. Moscow Exchange acts as the trade organiser and technical centre. The market operates as an order-driven trading platform in accordance with the procedure stipulated in the Rules of Organised Trading for the FX and Precious Metals Markets. The trading system ensures a level playing field for all trading members and registered clients in entering and executing FX buy/sell orders and accessing market data. Trades are executed automatically as orders are matched in the system. A special trading mode enables off book (addressed) trades. National Clearing Centre (NCC) clears trades in accordance with the Clearing Rules for the FX and Precious Metals Markets. NCC acts as the central counterparty to every trade and guarantees performance of every transaction to non-defaulting brokers. Brokers are not required to provide full prefunding, and enjoy a highly efficient and reliable risk management system.
USD, EUR, GBP, HKD, CNY, UAH, KZT and BYR FX spot as well as swap transactions with different maturity can be made via the market's electronic trading system from 10:00 am to 11:50 pm Moscow time (as specifically set out in the Trading Schedule of the FX and Precious Metals Markets). USD/RUB, EUR/RUB and CNY/RUB swaps with maturity in 1W, 2W, 1M, 2M, 3M, 6M, 9M and 1Y are available. The most actively traded currency pairs are USD/RUB and EUR/RUB, which respectively accounted for more than 80% and 15% of total FX Market turnover in 2014. Yuan trading developed rapidly in 2014, with volumes increasing eightfold. Turnover in the national currencies of Eurasian Economic Union states also posted strong results. In December 2014, the new currency pairs GBP/RUB and HKD/RUB were launched.
As of 1 January 2015, 534 companies were FX Market members, of which 494 were "credit organisations" (Russian banks, subsidiaries of foreign banks and resident banks of Eurasian Economic Community member states) and 40 were "noncredit organisations".
The development of full direct market acccess (DMA) facilitated a significant increase in member activity and an expansion of the client base due to the arrival of new client categories including non-residents, Russian and foreign brokers/sub-brokers and individuals. The number of registered clients increased from 46,600 in 2013 to 210,000 in 2014.