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Screenshot of a breaking news alert e-mail from Q2 2017
Forex revenues were up 19% Y/Y, led by forex swaps
The Russian operator for financial securities, the Moscow Exchange, has announced today its Q3 results. While quarterly revenues and profits were lower than in the second quarter, they were certainly higher than a year ago. Strategic developments announced in the past couple of months will likely underpin future earnings growth according to CEO Alexander Afanasyiev.
Total trading volume rose by 25.3% YoY to 123.9 trln Russian Rubles ($4 trln), while total operating income rose 11.2% YoY to 6.3 bln RUB ($ 193.5 mln), but marginally dropped QoQ by 0.4%. That was not the case with the drop in operating profits which was reported to be lower by 13.7% on the second quarter, while maintaining a steady rise of 9.1% YoY to 3.5 bln RUB ($107 mln).
Fees and commissions revenue from the foreign exchange market have increased by 19.2% to 641 mln RUB ($20 mln). The move was mainly due to a whopping doubling (up 97.1% YoY to be precise) in the volume of FX swaps traded when compared to last year. Spot trading was reported to be lower YoY – dropping by 12.4%. A new FX fixing methodology was also introduced during the quarter.
Amongst key developments for the company highlighted the centralization of platforms for trading Equities and Bonds, FX and Derivatives at a single technology venue. In addition it announced that five more major global banks will be joining Citigroup (NYSE:C), Credit Suisse (NYSE:CS), Merrill Lynch (NYSE:BAC) and Morgan Stanley (NYSE:MS) that already have been providing direct market access to securities trading on the Moscow Exchange since September.
With the new volatility index methodology being the most recent innovation that has been announced by the Moscow Exchange, we can only expect more steps in the right direction, while Russia aims to open up its markets to the world and attract new issuers an investors.
For the full press release visit the website of the Moscow Exchange.