The FINANCIAL -- The FX market Committee advised the Board of Directors of MOSCOW Exchange to approve amendments to the Rules of admission to trading on
the FX market.
The amendments imply that companies without banking licences will be able to trade on the FX market provided that they meet the requirements set forth in the Rules.
As a result, MOSCOW Exchange takes one more step towards an expansion of the FX market participant base. In February 2012 the project for introduction of the 2-tier access to the market was launched and has been actively developing up to now.
The Committee supported the suggestion of the Exchange to admit to trading on the FX market those professional trading members who have licences to act as a broker, dealer, trustees and who meet the capital (no less than RUB180 million) and reporting criteria. According to Igor Marich, Managing Director of Money Market at the Exchange, the qualitative expansion of the participant base represents a strong incentive for the Russian on-exchange FX market to develop and rise.
“New members will generate additional liquidity on the market”, said Igor Marich. “Unified membership on the Exchange"s markets will allow promoting the establishment of the unified collateral requirements and further reduction of costs for the trading members as well as the simplified procedure for connection to trading in currencies”.
As MOSCOW Exchange reported, the Committee also decided to recommend a fivefold increase of the tick for spot instruments determining the tick"s value at 0.0005 currency units.
In addition, the Committee considered an approval of a MOSCOW Exchange fixing as an alternative to the current ones. The approach of MOSCOW Exchange to the matter and principles for internal fixing setting were approved. After being completed the fixing will be calculated and published on a regular basis.
Roman Sulzhik, Managing Director of the Derivatives Market, underscored the importance of fixing for the Derivatives market and said: “The introduction of fixing is a great stride towards the market. We leave aside easily manipulated fixings got through inquiries and offer the absolutely transparent decision for the participants that allow them to protect their interests. In particular, we are planning to implement the fixing in settlement of the FX derivatives soon”.