Moscow Exchange (MOEX) has signed a Memorandum of Understanding with the China Foreign Exchange Trade System (CFETS) to unify the liquidity pools for trading in RMB/RUB on the two platforms.

MOEX and the CFETS have set up a joint working group to conduct research, collaborating to explore mechanisms to unify RMB/RUB trading and matching. The working group will determine the roles of the relevant counterparties for credit, trading and net settlement intermediation, plus the adoption of important controls and reporting for compliance with Russian and Chinese regulation.

Igor Marich, Member of the Executive Board of Moscow Exchange, commented: "Collaboration between MOEX and the CFETS, the leading FX platforms in Russia and China, respectively, is intended to improve pricing in RMB/RUB instruments and stimulate settlement in RMB and RUB. Better links between the countries’ financial institutions should help to facilitate more cross-border investments."

Zhang Cuiwei, Executive Vice President of CFETS, added: "As part of the MoU, the two sides will also jointly explore business projects including the feasibility of a unified liquidity pool for CNY/RUB. Such efforts will further expand the opening-up of China-Russia financial markets, improve trade and investment liberalization and deepen China's financial cooperation with countries participating in the Belt and Road Initiative."