Moscow Exchange signs memorandum of understanding with China Foreign Exchange Trade System
Shanghai, November 19, 2019 -- Moscow Exchange (MOEX) has signed a Memorandum of Understanding (MoU) with the China Foreign Exchange Trade System (CFETS) to facilitate collaboration and to unify the liquidity pools for trading in the RMB/RUB currency pair on the two platforms.
The MoU was signed by Ms. Zhang Cuiwei, Executive Vice President of CFETS, and Mr. Igor Marich, Member of the Executive Board of Moscow Exchange.
MOEX and the CFETS have already set up a joint working group to conduct research, with an agreement to collaborate and continue to explore feasible mechanisms to unify RMB/RUB trading and matching. The working group will determine the optimal unification model, including the roles of the relevant counterparties for credit, trading and net settlement intermediation, plus the adoption of important controls and reporting for compliance with Russian and Chinese regulation.
Igor Marich commented: "MOEX has steadily expanded its cooperation with leading Chinese exchanges and financial institutions. Collaboration between MOEX and the CFETS, the leading FX platforms in Russia and China, respectively, is intended to improve pricing in RMB/RUB instruments and stimulate settlement in RMB and RUB. Better links between the countries’ financial institutions should help to facilitate more cross-border investments."
ZHANG Cuiwei added: "Amid China-Russia relations upgraded to a comprehensive strategic partnership of coordination, CFETS and MOEX signed the MoU to enhance mutual understanding and drive coordinated development. As part of the MoU, the two sides will also jointly explore business projects including the feasibility of a unified liquidity pool for CNY/RUB. Such efforts will further expand the opening-up of China-Russia financial markets, improve trade and investment liberalization and deepen China's financial cooperation with countries participating in the Belt and Road Initiative."
CFETS devotes itself to building the major global trading platform and pricing center for RMB and related products. CFETS provides a series of services covering issuance, trade, post-trade processing, information, benchmark and training services for interbank FX market, money market and bond market. CFETS undertakes daily monitoring on market transactions, and also provides support and service for PBC’s monetary policy transmission and market self-regulatory organizations. CFETS releases market benchmarks, including RMB Central Parity Rate, Shanghai Interbank Offered Rate (Shibor), CFETS RMB Index, Loan Prime Rate (LPR), RMB Reference Rate, Bond Indices, yield curves, etc., offering reference prices for the market.
MOEX’s FX Market is the largest worldwide multilateral trading platform for RUB-denominated FX instruments. The Moscow Exchange Group operates Russia’s main trading platform for currencies, money market instruments, equities, bonds, derivative instruments and commodities. The Group includes the central securities depository (National Settlement Depository) and a clearing center (National Clearing Centre), performing the functions of central counterparty on the markets, which allows MOEX to offer its clients a full range of trading and post-trading services including feature rich, assured net settlement solutions. Moscow Exchange held an initial public offering of its shares on 15 February 2013 (ticker: MOEX).