OREANDA-NEWS. On 02 June 2009 was announced, that trading in EUR/USD currency pair was launched in the MICEX Group’s on-exchange currency market on April 13, 2009. As at 14:00, Moscow time, 25 transactions were conducted worth more than USD 5 million. The first deal in the new EUR/USD currency pair in the UTS was closed between BTA Bank and Lanta-Bank.

In the new segment of the on-exchange currency market, participants in trading in the UTS can conduct transactions in instruments with “today” settlements (EURUSD_TOD) and “tomorrow” settlements (EURUSD_TOM). They can also carry out swaps on “overnight” terms (EURUSD_TODTOM). Commercial bank National Clearing Centre, a subsidiary of the MICEX, acts as a central counterparty involved in transactions conducted in this segment. National Clearing Centre also provides clearing of transactions. A wide range of risk management mechanisms is used in trading held in the EUR/USD segment, including:

the PVP (payment vs. payment) principle;

limiting the volume of transactions by setting limits on the basis of preliminary deposition of funds;

the Bank of Russia’s participation in the completion of settlements;

a guarantee fund of 2.6 billion rubles set up by the MICEX to ensure the performance of National Clearing Centre’s obligations in settlements.

To increase liquidity in the segment of EUR/USD transactions in the initial phase of its operation, the MICEX Group started the practice of market making in the on-exchange currency market. Metallinvestbank has been one of the first market makers for the EUR/USD currency pair. Several more participants may join this program in future.

To make the new segment more attractive, in addition to the practice of market making, the MICEX Group has established a marketing period for the payment of the commission fee for transactions in the EUR/USD currency pair till July 1, 2009, during which the overall amount of the commission fee is 50 rubles per one trading session.

The implementation of the MICEX Group’s project to create EUR/USD instruments is one of the measures aimed at improving the exchange infrastructure and helping the MICEX’s clients – participants in trading in the UTS – to carry out transactions in a foreign currency pair using reliable exchange mechanisms. This project will enable participants in trading in the UTS to convert euros and U.S. dollars not only via ruble instruments but also directly. This gives participants in trading additional possibilities of managing their liquidity.