The Moscow Exchange will begin trading in the UAE dirham

By Rhod Mackenzie

The Moscow Exchange will start currency rading in UAE dirhams with settlement in rubles on Monday, and will also allow the settlement of over-the-counter transactions with the central counterparty (CCP) with the Turkish lira and the Hong Kong dollar, according to a statement from the trading platform.

"From 25 September, the UAE dirham - Russian ruble pair will be added to the list of FX market instruments with settlement in rubles. This instrument allows you to open a position without physical settlement in this currency and is aimed at a wide range of clients who need to hedge spot transactions. The settlement of closed transactions is in rubles at the Bank of Russia's exchange rate. Since June 2023, the Swiss franc - Russian ruble currency pair has been traded in this mode," the statement said.

In addition, from Monday trading participants will have the opportunity to settle OTC transactions with the Central Counterparty (CCP) in the currency pairs Turkish lira - ruble, dollar - Turkish lira, Hong Kong dollar - ruble and dollar - Hong Kong dollar," - the exchange reports.

The clearing service for OTC transactions with CCPs was launched in January 2021 and allowed minimising credit, settlement and operational risks for OTC transactions by using the exchange infrastructure and reducing the regulatory capital burden. In addition, clients will be able to cross-margin and net between exchange-traded and OTC (over-the-counter) trades, the exchange said.

The Moscow Exchange foreign exchange market is an organised trading platform that has been conducting foreign exchange trading since 1992. Market participants and their clients have access to spot and swap transactions on 21 currency pairs.