MICEX: Beginning From 15 April, Trades In A New Instrument - "Dollar/Ruble" - With Today Settlements Begin In The Unified Trading Session (UTS) Of Inter-Bank Currency Exchanges

Beginning from 15 April, 2003, banks will be able to trade in a new instrument - "dollar/ruble" - with today settlements (?+1) in UTS from 10:00 till 16:45, Moscow time. These changes are in agreement with the new version of the Rules of purchase and sale of foreign currency in the Unified Trading Session of inter-bank currency exchanges (UTS Rules), approved by the Bank of Russia and adopted by the MICEX Exchange Council. Commissions for the purchase and sale of US dollars for Russian rubles as a result of trades in UTS do not change.

Beginning from 15 April, three currency instruments will be traded in UTS: the US dollar with today delivery (USD/RUB_UTS_TOD), the US dollar with tomorrow delivery (USD/RUB_UTS_TOM) and the euro with today delivery (EUR/RUB_UTS_TOD). The minimal lot in USD/RUB_UTS_TOM is 1000 US dollars.

The launch of the new instrument has not changed the basic principles of trade and guaranteed settlements in UTS. At the same time, some technological changes have been made in UTS trading system. The trading system registers funds, which banks transfer in order to participate in trades in UTS. To participate in trades, it is enough to have the following amounts of funds in the trading system:

• for instrument USD/RUB_UTS_TOD - 1,5% of the volume of planned transactions;
• for instrument USD/RUB_UTS_TOM - 2,25% of the volume of planned transactions.

Trading limits for participant's instruments are calculated automatically in the real-time mode on the basis of the total sum of the funds, transferred by a participant. When a transaction is concluded, a participant's limits are dynamically corrected. After the trades, the MICEX performs netting of participant's obligations for the results of trades in dollar instruments.

Trades in UTS will be held from 10-00 till 16-45, Moscow time, for all inter-bank currency exchanges.

The order of trades and settlements for the day session instruments does not change.

Thus, beginning from 15 April, the MICEX will have the following schedule of currency trades:

 

The existing national system of exchange trades covers Russia's leading financial regions and allows commercial banks, located in different time zones, to participate in trades. Today, over 1100 participants (lending institutions and their regional branches) have access to the UTS.

The MICEX's widening of the range of instruments, traded in the UTS, is aimed at offering market participants a set of services in the exchange currency market, which meet their needs in concluding transactions and effecting settlements.