Moscow Exchange enables USD settlements for foreign securities trading


Moscow Exchange, or Moskovskaya Birzha OAO (MCX:MOEX), today unveiled a set of new services and instruments available on its stock and money market. Among the novelties, we can highlight the ability for settlement in foreign currencies.

From June 1, 2015, foreign securities (shares of companies incorporated outside Russia as well as depositary receipts) are technically eligible for settlement in US dollars (USD), in addition to Russian ruble (RUB). Moscow Exchange promises to unveil the admission date for such securities in due course.

On top of that, the Exchange has started to offer trading in bonds denominated in CNY and GBP with settlement in those currencies.

In addition, USD, EUR and OFZs may be accepted as contributions to the Guarantee Fund.

Another piece of news related to foreign currency settlements on MOEX was also out earlier today.

Settlement in USD and EUR will become technically available for repo and negotiated trades with the Central Counterparty, in addition to RUB settlement. The new service seeks to offer participants an additional tool to manage liquidity.

The maximum term for repo and negotiated trades with the CCP will be expanded to seven days. This will make easier liquidity management over longer periods and will enable synchronization of CCP-cleared repo transactions with certain Bank of Russia repo transactions, as well as enabling participants to reduce interest rate risk.

To view the official press release and to learn more about the novelties at MOEX, click here.

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Moscow Exchange enables USD settlements for foreign securities trading

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