moscow exchange

MOEX Adds New FX Instruments and Liquidity to Boost FX Opportunities

The Moscow Exchange (MOEX) or the MOEX, has announced expanding its line of opportunities around the foreign exchange market and boosting its liquidity for market participants by adding new instruments and services.

The exchange has introduced many new offerings, that includes a pilot USD/RUB order book, new instruments for the JPY/RUB currency pair. It has also introduced new currency pairs such as USD/CNY, USD/TRY and will be added to the global over-the-counter (OTC) liquidity access project.

In addition to new currency pair and instruments for existing pairs, MOEX will also introduce matching at the weighted average USD/RUB FX rate, that will correlate to the Bank of Russia’s official rate. This new arrangement will allow clients of the exchange to execute currency exchange transactions and sell foreign currency.

Forex Markets
Forex Markets

As per the statement of the exchange: “To stimulate on-exchange FX liquidity, advance the matching techniques and evaluate their impact on market liquidity, the experimental USD/RUB order book will be launched.” “The minimum lot size will be USD 1 million. The simulated random delay of 2-5 ms will be applied at order entry to eliminate arbitrage between technical access of different trading members. ‘Cancel’ transactions will not be delayed.”

The trading experience in JPY/RUB will also improve significantly as the exchange is planning to add instruments with deferred settlement (T+1) and an overnight TODTOM swap.

Furthermore, the exchange added: “MOEX’s initiative to facilitate access to global OTC liquidity for FX Market participants will be expanded to include two new currency pairs, USD/CNY with settlement on T+2 and USD/TRY with settlement on T+1, along with already available EUR/USD and GBP/USD. OTC service connectivity has also been improved to provide a connection via the globally used FIX protocol applied on all MOEX’s markets.”

This is not the first time, the exchange is trying to enhance its liquidity position. In November last year, it has partnered with a forex market tech provider, Integral Development Corp. to boost liquidity.