MOEX Reports Strong Rebound in FX Volumes, up 10% MoM

 FX trading volumes regained its momentum at Moscow Exchange (MOEX) during September, as investors’ interest roared back from the depths of the Covid-19 volatility, according to a monthly report from Russia’s largest institutional trading venue.

Today, MOEX said its total FX market turnover jumped 10 percent from a month earlier.

MOEX’s figure for September posted RUB 25.3 trillion ($350 billion) from the RUB 23.0 trillion ($315 billion), which exchanged hands in August 2021. However, MOEX’s turnover was lower compared with volumes from the same month a year earlier, having dropped 15 percent when weighed against RUB 29.9 trillion in September 2020.

September 2021’s turnover included spot trades of RUB 6.8 trillion ($93 billion). This surpassed the RUB 6.5 trillion in the previous month, while swap trades and forwards totaled RUB 18.5 trillion ($255 billion).

In terms of the average daily volumes in September 2021, the metric printed RUB 1.14 trillion ($15.7 billion), which is up from RUB 1.04 trillion ($14.2 billion) in the prior month, Moex said in a statement. Additionally, year-on-year, the ADV figure was down 15 percent from RUB 1.35 trillion or $17.9 billion in 2020.

Investors’ interest in OTC derivatives trading at Moscow Exchange (MOEX) continued its upward route in 2021 buoyed by a steady rise in volatility. This was coupled with a multi-year effort to bring new business to the platform.

The exchange has recently launched trading on foreign securities priced in US dollars in a major upgrade to its infrastructure. MOEX plans to make more international securities available for trading in the future based on demand from market participants. Trades are settled in both Russian rubles and the stock’s native currency.

MOEX has also extended trading hours in a move aimed at attracting a greater number of foreign investors and to drive more liquidity. Overall, there has been a jump in retail activity throughout 2020 and 2021. Amid concerns over the economic impact from the coronavirus outbreak, there was a brighter side for all trading platforms, which attracted a rush of business as investors scrambled to protect portfolios.