Russia's rouble-denominated MICEX exchange will offer a hedge against volatile interest rates from Tuesday in a delayed trading launch that analysts say will test the country's fledging derivatives market.
MICEX, Russia's largest bourse, said on Monday it would launch open trade in interest rates futures, but the start of dealing would be postponed by a day after Russia's markets watchdog said it had not been properly notified by MICEX.
MICEX said it would trade futures on compounded overnight Mosibor (Moscow InterBank Offered Rate) and 3-month MosPrime (Moscow Prime Offered Rate).
"New instruments will create favourable conditions for hedging rouble interest rate risks, which becomes an even more pressing issue in view of approaching rouble convertibility," MICEX Vice President Evgeny Ellinski said in a statement.
Russia plans to scrap remaining capital controls on July 1 in a move expected to make it easier for people and companies to take cash in and out of the country. Officials expect financial flows to increase as a result.
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