FORTS Lowers Margin Payments For The Futures On 3-Year Moscow City Bonds FORTS

Effective February 6th, 2006, the size of the initial margin payment for the futures on 3-year Moscow City Bond basket traded on FORTS will be lowered twofold. From now on traders will have to deposit only 5% of the total value of the contract as the initial margin (before that amount equaled 10% of the total contract value). The decision to lower the payment was made by RTS Derivatives Market Committee on February 2nd, 2006.

"Margin payments for the contract were lowered since Moscow City Bonds are one of the most reliable financial market instruments. They are not volatile and are characterized by low risks for investors, clearing firms and the clearing center alike", said Roman Gorunov, head of the Derivatives market of the Russian Trading System. – the initial margin for the contract was originally set slightly higher than usual since this was a totally new instrument on the Russian securities market – an interest rate futures contract. Now that this contract proved to be popular – its liquidity and open interest are high – it had been decided to lower the initial margin to the optimal level".