Russia’s MOEX to Resume Early Morning FX, Evening Stock Trading in September

The Moscow Exchange (MOEX), Russia’s largest exchange group, says it is planning to resume early morning forex and evening stock trading in September.

This is part of moves by the exchange to return to normalcy following the disruptions Russia’s war on Ukraine caused across markets in the exchange.

The exchange had suspended stock trading on its platform for three weeks in the days following the launch of Russia’s war on Ukraine.

MOEX noted that the early morning forex market will be opened for trading in currencies and derivatives while shares on the Moscow Exchange index will be traded in the stock market, Reuters reports.

While Russia’s main trading hour starts at 07:00 and ends at 16:00 GMT, early morning trading kicks off at 03:50 GMT while the evening session starts at 16:00 GMT.

Finance Magnates reported that the exchange’s forex market relapsed in July after trading volume dropped 3% to RUB 17.3 trillion.

According to Reuters, in addition to relaunching the early morning trading session, the top Russian exchange also plans to increase the trading hours of Chinese yuan before this year runs out.

This is even as the war has left Russia increasingly dependent on China to soften the impact of Western sanctions and limited access to dollars and euros.

Heat of War

With the war on Ukraine still ongoing, the Moscow Exchange despite its best efforts is still feeling the heat of the war.

On Monday, the exchange announced that from August 29th, it will halt the use of US dollar as collateral for underwriting transactions.

Earlier in the month, the exchange reduced the use of the US dollar as collateral from 25% to 50%.

In July, the exchange announced a planned suspension of trading in Japanese yen on its currency market effective from August 8.

MOEX had cited potential risks and difficulties in Japanese yen settlement
Settlement

Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer’s name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 business days or T+2 after the trade is executed, and for listed options and government securities it is usually 1 day after the execution. Conversely in Europe, settlement date has also been adopted as 2 business days settlement cycles T+2.Settlement ExplainedA settlement is also the process of the payment of an outstanding account balance, an open invoice or charge. The electronic settlement system is a relatively new construct that has only become a standard in the past thirty years.For example, in real estate finance, you have settlement when the funds are accepted, and the deed to the property is traders to the new owner. Settlement can also mean an adjustment or agreement reached in matters of finance or business. For example, we have settled with the bank or the credit card company. A number of risks arise for the parties during the settlement process. These are effectively managed by the process of clearing, which follows trading and precedes settlement. By extension, clearing involves modifying those contractual obligations so as to facilitate settlement, often by netting and novation.

Settlement in finance refers to the process when a buyer makes payment and receives the agreed-upon services or goods. The term is used on exchanges such as New York Stock Exchange (NYSE) when security changes hands. When the asset is transferred and placed in the new buyer’s name, it is considered settled. This process could take a few hours or several days after a trade is made. It depends on the clearance process. In the United States, the settlement date for marketable stocks is usually 2 business days or T+2 after the trade is executed, and for listed options and government securities it is usually 1 day after the execution. Conversely in Europe, settlement date has also been adopted as 2 business days settlement cycles T+2.Settlement ExplainedA settlement is also the process of the payment of an outstanding account balance, an open invoice or charge. The electronic settlement system is a relatively new construct that has only become a standard in the past thirty years.For example, in real estate finance, you have settlement when the funds are accepted, and the deed to the property is traders to the new owner. Settlement can also mean an adjustment or agreement reached in matters of finance or business. For example, we have settled with the bank or the credit card company. A number of risks arise for the parties during the settlement process. These are effectively managed by the process of clearing, which follows trading and precedes settlement. By extension, clearing involves modifying those contractual obligations so as to facilitate settlement, often by netting and novation.
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