Eurex to Offer Ruble Derivatives With Moscow Exchange

Eurex will begin offering Russian currency derivatives with the Moscow Exchange, a day after announcing plans to enter the foreign-exchange market for the first time.

Europe’s largest derivatives exchange and the Moscow bourse signed an agreement in Frankfurt today to create contracts on two currency pairs in the fourth quarter, Alexander Afanasiev, chief executive officer of Moscow Exchange and Andreas Preuss, CEO of Eurex, said in a telephone interview today. They plan to offer euro-ruble and dollar-ruble futures based on the Moscow Exchange’s settlement prices.

Eurex, a unit of Deutsche Boerse AG, yesterday said it will introduce exchange-listed derivatives on the six currency pairs where the bulk of over-the-counter trading takes place as it expands into an asset class dominated by Chicago-based rival CME Group Inc. CME, the world’s largest futures exchange, also offers ruble-dollar futures.

“The dollar-ruble and euro-ruble futures are popular instruments in Russia and we hope to see similar demand from European investors,” Afanasiev said.

Exchanges are vying to win market share as volumes in currency markets increase amid regulators’ insistence on greater transparency. Volumes in the world’s biggest financial market jumped to a record $5.6 trillion a day in June, according to data from CLS Bank, which operates the largest foreign-exchange settlement system.

Product Development

Deutsche Boerse and the Moscow Exchange, Russia’s main stock and fixed-income market, said last year that they will cooperate in areas including product development, technology, clearing and indexes.

“Our strategic cooperation is young and we have more plans here, though our main focus remains organic growth,” Eurex’s Preuss said.

CME is setting up a new European exchange, based in London, that will start with 30 currency futures. On Aug. 1, the company said record foreign-exchange trading contributed to a 27 percent increase in second-quarter profit from the year-earlier period.

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