Moscow Exchange seeks to ramp up derivatives offering


Moscow Exchange seeks to ramp up derivatives offering

http://www.efinancialnews.com/story/2013-06-20/moscow-exchange-seeks-to-ramp-up-derivatives-offering?omref=email_TradingTechnology

The Moscow Exchange will add futures based on popular German stocks to its market, as part of its plans to further develop a derivatives offering for both retail and institutional investors.

Moscow Exchange seeks to ramp up derivatives offering

The Moscow Exchange has partnered with Deutsche Börse-owned derivatives market Eurex to offer futures based on the stocks of Deutsche Bank, Siemens, BMW, Volkswagen and Daimler from September.

Speaking to Financial News, Roman Sulzhyk, head of futures and options market at Moscow Exchange, said: “These new futures will offer Russian retail investors with new products to invest in and are the first step in our cooperation with Deutsche Börse. We plan to look at the portfolio of products offered by both exchanges to see where we can further extend our partnership.”

Deutsche Börse signed a letter of intent with Moscow Exchange in November 2012, which established a strategic partnership between the two bourses. The exchanges have previously said they will look to cooperate on infrastructure, product development, regulations and post trade services.

The new derivatives are short-dated products that Sulzhyk said would allow retail investors to take short-term bets on the future stock price of the five German stocks. He added that Eurex and Moscow Exchange deliberately started with products that would not lead to a shift of liquidity from Germany to Russia.

 

Sulzhyk also said the Moscow Exchange was actively working with regulators to help encourage the use of derivatives among institutional investors.

“We are working hard to make it easier for large Russian funds to trade derivatives. There aren’t many Russian funds with derivatives in their portfolio because of unclear regulation. Institutional investors want access to liquid, longer-dated derivatives that will help them to hedge against portfolio risk,” he said.

The Russian exchange already lists futures based on the main indices of Brazil, India, Hong Kong and South Africa as part of an initiative known as the Brics Exchange Alliance that was launched last June.

The Moscow Exchange was formed in December 2011 from a merger of Russia’s two main domestic exchanges RTS and Micex as part of the Russian government’s plan to transform Moscow into an international financial centre. Since the deal was completed, the exchange has taken steps to encourage overseas firms to trade on its market, including major changes to post trade processes.

 

– write to anish.puaar@dowjones.com and follow on Twitter @anishpuaar

 
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I am a Cross Asset FIX Connectivity SME working for international banks. i also sit on the FIX Protocol Ltd Global Steering Committee, and am Co-Chair of the Global Cross Asset Committee. I also have a very strong background in Mobile Telephony, Cloud computing, SaaS, IaaS, PaaS, Big Data, innovation, and am a pioneer in Pseudolite technology.

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