Moscow Exchange expands Derivatives Market platform functionality

Moscow Exchange plans to introduce changes and new services to its Derivatives Market that will allow participants to utilise collateral more efficiently.

The changes mean that 100% of collateral will be in USD, versus the current requirement of 50% USD and 50% RUB. The change will simplify operations for foreign market participants and lower funding costs for Russian market participants.

Professional participants will gain access to segregated accounts and position transfer services, which, in case of nonfulfillment of obligations (default) by a clearing firm, allows client positions to be transferred to another clearing entity, providing protection against the settlement firm's risk.

A new volatility index future will also be launched based on feedback from market participants. The new methodology adheres to international standards and enables more accurate evaluation of market volatility.

Moscow Exchange has additionally made a number of changes affecting options contracts:

– Condensation of strikes: one month before options on RTS futures expire, intermediate strikes will be introduced, reducing the gap to 2,500 from 5,000 points.
– One week options will be introduced on nearest futures (date of introduction to be announced).
– Commission collection on options will be changed to depend on the settlement price as of the last evening's clearing. This will substantially reduce the cost of working with low-price options. The new tariffs enter into force on 20 November at 7.00 pm.

The new platform will be tested on Saturday, 16 November, and is due to be brought online on 18 November.

For further information, please contact the Public Relations Department at (495) 363-3232.