Records set in repo with the CCP

In February 2015, the average daily volume of repo transactions with the central counterparty (CCP) was RUB 168.7 bln (up 58% month-on-month and 148% year-on-year), a record since the launch of the instrument in early 2013.  

The market for repo with the CCP has rapidly become one of the dominant segments of the money market and trading volumes continue to demonstrate strong growth. Currently, all OFZs, more than 50 stocks, 130 corporate bonds and 95 Eurobonds are available to repo with the CCP. 260 brokers execute repo transactions with the CCP.

On 20 February, the volume of repo transactions with the CCP reached a record high of RUB 191.8 bln. Eurobonds have been admitted to repo with the CCP since December 2014. In February, the share of repo transactions in Eurobonds made up 21% of the total volume (RUB 683.6 bln). The total volume of transactions concluded on the Moscow Exchange"s Money Market in February was RUB 17.7 trln, up 22% year-on-year.  

The growth of volumes in repo with the CCP was driven by new brokers joining the market, an increase in overall client activity and Eurobonds becoming eligible for repos, a change implemented in December that significantly increased the total potential collateral base for repos on Moscow Exchange.

Moscow Exchange launched repo with the CCP in February 2013. The on-exchange repo allows brokers to trade without any bilateral credit lines established given that the National Clearing Centre (NCC) acts as a counterparty to all transactions. The CCP also guarantees settlement of all repo transactions. The instrument has helped to considerably mitigate the negative impact on the Money Market caused by reductions of bilateral limits by brokers.

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