Moscow Exchange reports flat financial results for FX business

Moscow Exchange (MOEX) today said its second-quarter revenues improved 10 percent to RUB 13.1 billion despite a 23 percent contraction in net interest income.

The mega Russian marketplace revealed RUB 6.69 billion in Q2 net profit, up 2.1 percent from RUB 6.8 billion in the second quarter of 2020.

On the FX business front, MOEX has reported a 14.3 percent increase YoY in average daily volume on its spot foreign exchange market for the Q2 2021. The currency division yielded RUB 1.02 billion in revenues, virtually unchanged from RUB 1.01 billion in Q2 2020.

MOEX’s total FX market turnover fell to RUB 25.8 trillion last month, down 2.6 percent month-over-month from the RUB 26.5 trillion exchanged hands in June 2021. Compared with volumes from the same month a year earlier, this figure was down 6.2 percent when weighed against RUB 27.5 trillion in June 2020.

The trading volume mix slightly deteriorated towards the less profitable swap segment. Spot volumes added 8.3 percent, while swap volumes added 16.6 percent.

Other business highlights show that fee and commission income grew by 24.2 percent to RUB 9.9 billion. MOEX said the share of this business line in total income remained comfortably above their strategic target of 70 percent for the fourth consecutive quarter.

Commenting on the results, Yury Denisov, Chief Executive Officer of Moscow Exchange, said:

“We achieved excellent results in the second quarter. The expansion of instruments available to investors on our platform and extended trading hours on the Derivatives and FX Markets boosted trading volumes and helped significantly increase fee and commission income. We are pleased that fees and commissions now account for 75 percent of MOEX’s total income, which is in line with our targets.”

“We see interest from clients to trade global markets strategies using derivatives. For that reason, we recently launched derivatives on the US stock market, the first futures contracts on Chinese securities to be offered in Russia and we are preparing to launch other stock and index futures – including with Asian underlyings – as well as Russian and international equity options,” he added.

Money may be invested into MOEX’s securities market instruments, such as forex, shares, government and corporate bonds, as well as ETFs and mutual funds.

MOEX, in particular, continues to develop its infrastructure. The exchange has recently unveiled a new FX algorithmic trading service, which comes amid Kremlin-backed efforts to make MOEX one of the world’s leading financial hubs.