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On September 1, 2010 at 7.00 pm (at the start of the evening trading session) trading in the futures contract on the USD/RUB exchange rate with settlement on September 15, 2015 started on FORTS, the derivatives market of RTS. This instrument has become the Exchange contract with the longest settlement term among existing instruments on the Russian stock market.
This five-year instrument on the USD/RUB exchange rate was launched due to the numerous appeals of market participants who need long-term hedging of currency risks. Russian enterprises and companies engaged in dynamic foreign economic activities or who are subject to currency risks, will now gain the opportunity to plan their financial budget 5 years in advance with the launch of the instrument.
The new futures contract has Si-9.15 code in the trading system and it keeps all the advantages and characteristics of 3-month currency contracts in it’s specification. The price of its first market transaction on the contract amounted RUB37,950.
‘The experience of leading international financial centers demonstrates high demand on long-term currency hedging instruments from the top companies and holdings globally. This trend has been particularly visible over the last two years when foreign currency market volatility was very high ’, comments Evgeny Serdyukov, Director of the Futures & Options Market at RTS Stock Exchange.
Moreover the five-year futures on the USD/RUB exchange rate will interest long-term investors with savings, deposits, and loans denominated in US dollars. The use of this future will enable them to protect themselves and their investments from inflation in the USA.
