Moscow Exchange has announced that it has decided to extend the testing period for new functionalities on its Derivatives Market (Spectra) and FX Market (ASTS).
The launch of new Derivatives Market services planned for June 27 and new FX Market services planned for July 4 has been postponed.
The Exchange will make a subsequent announcement with the roll-out dates for the new products and services, no less than a week prior to launch.
Moscow Exchange had indicated in March and April that it planned to offer new opportunities and services to FX Market participants, beginning this summer. The Exchange plans to expand its FX product offering, introduce new services to member firms and their clients, as well as improve the risk management system.
The planned additions and changes include:
Deliverable futures
Deliverable futures contracts on USD/RUB, EUR/RUB and CNY/RUB currency pairs will be launched. The contract lot will be 100,000 currency units, with a tick size of RUB 0.01 for USD/RUB and EUR/RUB and RUB 0.001 for CNY/RUB. Contracts will be settled quarterly on fixed dates. The new deliverable futures can be offset with swaps on the same underlying assets.
New currency pair
The CHF/RUB currency pair will be launched to calculate risk parameters for CHF-denominated bonds, in order to admit these bonds to repo with the CCP and make the currency eligible as collateral.
In the beginning, MOEX will offer instruments with TOM and TOD settlement, as well as swaps.
Risk management
Collateral requirements will be reduced for opposite positions in EUR and USD thanks to an inter-product spread, allowing trading firms to reduce their funding costs. To unify collateral calculations, interest risk will be considered for TOM positions and margin requirements will be issued for overnight swaps similar to long-term swaps.