Moscow Exchange launches clearing of OTC derivatives with Central Counterparty
Moscow Exchange opened its new Standardised OTC Derivatives Market on 28th October.
The service allows banks and dealers to clear OTC interest rate, FX, and cross currency swaps through the NCC, which is a qualified central counterparty. This will reduce participants" capital requirements and increase profitability due to more efficient liquidity management.
New instruments were introduced on 28th October: interest rate swaps on RUONIA, MOSPRIME, and LIBOR rates, USD/RUB cross-currency swaps, and USD/RUB FX swaps with maturities from intraday to five years.
The exchange expects to offer clearing of OTC FX and Equity options next year. Centralisation of OTC derivatives is part of Russia"s commitment at G20. The CBR and commercial banks (including Sberbank, VTB Bank, Deutsche Bank, Credit Suisse, Raiffeisen Bank, Promsvyazbank, ING bank, UniCredit Bank, and Metallinvestbank) were integral to the project implementation.