MOEX becomes clearing member on Shanghai Gold Exchange
In October 2019, the National Clearing Centre (NCC), a Moscow Exchange Group company, obtained clearing membership on the Shanghai Gold Exchange (SGE). The NCC has obtained SGE membership under a Memorandum of Understanding between the exchanges signed in April 2018 and a Memorandum of Understanding on cooperation in gold trading signed by the Bank of Russia and the People’s Bank of China in September 2017.
Clearing membership status with the SGE will in due course allow MOEX to establish a trading and clearing link with the SGE. This will support increased liquidity and trading volumes on the Russian regulated precious metals market, diversify end markets and make operations with gold more efficient for participants in the Russian precious metals trading market and their clients.
In recent years Moscow Exchange has strengthened ties with leading Chinese exchanges and financial institutions. As well as SGE, MOEX has cooperation agreements in place with the Bank of China, Industrial and Commercial Bank of China (ICBC), Shanghai Stock Exchange (SSE), China Financial Futures Exchange (CFFEX), Dalian Commodity Exchange, Shenzhen Stock Exchange (SZSE), leading brokerages CITIC Securities and Galaxy Securities, as well as with SSE Infonet for distribution of Russian market data in China.
Moscow Exchange Group manages the sole multifunctional exchange platform in Russia for equities, bonds, derivatives, currencies, money market instruments and commodities including precious metals. Gold and silver spot trading was launched on MOEX in October 2013. Precious metals are delivered to trading members’ precious metal accounts opened with the National Clearing Centre (NCC), which acts as a central counterparty responsible for clearing and settlements. NCC also oversees post-trading bullion operations in exchange’s vault. Today there are 55 trading members of MOEX precious metals market: 43 banks and 12 professional securities market participants (brokers for private and corporate clients), including the Bank of Russia, which since 2017 has participated in both on-exchange purchases of gold on MOEX alongside OTC purchases.
Shanghai Gold Exchange was established in 2002 and as of today is the largest precious metals exchange in China (trading instruments in gold, silver, platinum). In 2014 SGE opened the international board (registered in Shanghai Pilot Free Trade Zone) for foreign investors access. SGE International Board members include the largest international financial groups, trading houses and gold bullion produces.