Moscow Exchange launched trading in precious metals on 21 October.
This trading is based on the FX Market"s trading and clearing platform, allowing trading members to employ the latter"s risk management system, have positions unified with FX instruments, and to use existing settlement codes. RUB, USD, EUR, CNY, and precious metals are eligible as collateral. Quotes are set in RUB per gram, and trades are settled in RUB.
The National Clearing Centre acts as the central counterparty and clearing house.
For the first time in the history of exchange trading in Russia, members can deliver precious metals via metals accounts. Banks are to be able to make transactions in bullion by the end of the month. Brinks and ТBSS, which specialise in transporting and storing precious metals, were chosen by tender to deliver said bullion.
The exchange will launch trading in platinum and palladium in 1H14 if there is interest from investors.
The commodities market is a key part of modern exchange trading. Global investment banks and funds, as well as large enterprises, use commodities to diversify their investment portfolios and hedge against risk. The Russian market is seeing strong demand for high quality commodity assets from all investor categories. The market offers banks reliable exchange infrastructure for bullion trades, and brokers a clear opportunity to attract new clients. Producers and consumers can hedge against risk and enjoy enhanced metals liquidity.
