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. Last Updated: 07/27/2016

Banking Group Planning Moscow Futures Exchange

A group of leading banks is planning to set up a new Moscow stock exchange specializing in futures trading, a banking official said Friday.


The group, which includes Rossiisky Kredit, Alfa-bank, Promstroibank, Tveruniversalbank, Toribank, Olimpiisky Bank, Promradtekhbank and several others have signed a letter of intent to set up the exchange, said Vladimir Yeryomenko, head of the futures department with Tveruniversalbank.


"The market is very large," Yeryomenko said. "I am almost sure the exchange will be a success."


The bank intends to launch operations of the new exchange, called the Moscow Finance and Futures Exchange, at the beginning of June, when Price Waterhouse has completed checking its trading system, he said.


The move comes as a result of the collapse of the Moscow Central Stock Exchange last fall, which deprived many banks of one of Moscow's futures trading floors, said Yeryomenko.


"The new exchange will have the safety and liquidity that the MCSE lacked," Yeryomenko said.


The exchange will start activities as a dollar futures-trading venue with plans to extend to trading in state treasury bonds and shares in privatized companies. In the future, the banks will introduce other financial instruments, he said.


Located in 400 square meters at the Sovintsentr, the exchange will have a charter capital of $2.5 million, Itar-Tass reported.


Moscow's primary futures trading venue is located at the Moscow Commodity Exchange, which trades about $40 million daily. The Moscow Interbank Currency Exchange is also planning futures trading in U.S. dollar and state treasury bonds.