Moscow Exchange Benchmarks Becomes IOSCO Compliant

  • Security and Compliance , Foreign Exchange
  • 18.03.2016 09:45 am

Moscow Exchange's (MOEX) benchmarks for the currency, equity, bond and money market segments have been recognised as compliant with the principles of the International Organization of Securities Commissions (IOSCO), confirming the Exchange's commitment to good global practices in financial benchmarking.

MOEX's robust benchmarks form the foundation for a number of financial products such as the Exchange's USD/RUB futures contract (one of the most-traded derivatives globally in 2015 by number of contracts), and RTS Index futures contract. Their IOSCO compliance was confirmed in an audit by Ernst & Young (EY).

Alexander Afanasiev, Moscow Exchange CEO, said: "Recognition of MOEX's benchmarks as IOSCO-compliant represents a milestone in the globalisation of our business. Our benchmarks are calculated using on-exchange trades and orders, in line with the best global practice of using market-based indicators rather than survey-based fixings. We expect this will further strengthen recognition of the Exchange's benchmarks among global as well as domestic investors and market participants."

Moscow Exchange calculates a range of daily benchmarks, including the RTS Index, MICEX Index, MOEX Aggregate Bond Index and other Russian benchmarks, as well as a number of benchmarks for the fast-growing FX Market, including USD/RUB, EUR/RUB and CNY/RUB exchange rates used to mark-to-market and settle RUB-denominated FX derivatives, and fixings for USD/RUB swaps with maturities ranging from one week to one year. Benchmarks are set based on transactions in the MOEX trading system, which is the most liquid segment of RUB-denominated FX transactions, accounting for 60% of the domestic interbank USD/RUB FX market in 2015. The MOEX RUB fixing is used to determine the final settlement price of USD-denominated futures available on MOEX.

MOEX's benchmarks guide and historical data are also available on the website.

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