The MICEX Group launches a new service in the derivatives market: the acceptance of foreign currency as collateral
July 19, 2010
Since July 19, 2010, foreign currency (US dollars) has been accepted in the MICEX Group’s derivatives market as collateral (deposit margin) in transactions involving foreign currency or stock derivatives.
The new service is provided to participants in clearing who, in accordance with Russian legislation, have the right to conduct transactions in foreign currency. In accordance with the established parameters, the deposit margin can be 100% composed of foreign currency.
The launch of the new service will significantly reduce the costs that participants in clearing incur to fund their own or their clients’ transactions by saving on the difference in the rates of the Russian ruble and the US dollar. The use of foreign currency as deposit margin enhances the possibilities to manage liquidity and is another step in the development of the MICEX Group’s derivatives market.
Additional information is available on the web site of the MICEX Group:
http://www.micex.ru/markets/futures/clearing/margin/1405
http://www.micex.ru/markets/futures/clearing/documents
Brief information:
The following futures are traded in the MICEX Derivatives (Standard Contracts) Market Section: USD futures, euro futures and EUR/USD futures as well as futures on short-term interest rates MosPrime Rate. The number of members of the Derivatives Market Section is 163 organizations.
The following futures are traded in the stock derivatives segment of the MICEX Group’s derivatives market: settlement futures on the MICEX Index, deliverable futures on shares in Sberbank, Gazprom, Lukoil and Norilsk Nickel. The total number of participants in trading in the derivatives market is 123 organizations.
Two types of deliverable futures are traded in the derivatives market of the NAMEX: futures on wheat of the 3rd, the 4th and the 5th classes (contract volume: 65 tons) with delivery on EXW (ex warehouse) terms, grain elevators of Southern Federal District of Russia and futures on export wheat (contract volume: 60 tons) with delivery on FOB (free on board) terms, port of Novorossiysk. 47 elevators are accredited on the NAMEX to implement deliveries on EXW (ex warehouse) terms, Southern Federal District of Russia.
Find more information on the MICEX Group’s derivatives market on the following page of the MICEX website:
http://www.micex.com/markets/futures/today