The Moscow Exchange Announces Start Of Precious Metals Trading Project


On June 26 the project "Precious metals market at the Moscow Exchange" was presented to the credit organizations, members of the Moscow Exchange's FX market, that have licenses to trade precious metals.

It is expected that the Exchange will launch trading in gold and silver with prices in rubles per gram and TOM settlement as well as swaps with maturity of TODTOM, TOMSPOT, 1w, 1M and 6M by the end of 2013.

Trades will be settled in Russian rubles. Trading hours will be from 10:00 through 23:50 MSK. Trading participants will utilize the risk management system of the FX market. Trading positions will be consolidated with the FX instruments for clearing purpose and existing settlement accounts may be used. NCC, the clearing arm of the Moscow Exchange Group, will ensure settlement of trades.

Credit organizations and brokerage firms will be the market trading members providing the access to the market to their clients, private investors, as well as precious metals producers and consumers.

With this new marketplace private investors will enjoy a new instrument serving as an alternative to OTC trading with impersonal metal accounts and offering minimum spreads and short selling opportunities. Banks will reduce costs associated with joining the precious market and be able to use the exchange infrastructure to make proprietary and client operations. In addition, credit organizations will obtain an additional way to refinance with the Bank of Russia and on the interbank market. Brokerage firms will be admitted to the market which was previously unavailable for them thus getting an opportunity to create products for clients using new instruments. Metals producers and consumers will be able to hedge against price risk through the exchange-traded instruments.