Russian derivatives are a tantalising market – already varied and strongly based, with three exchanges all with different strengths. But all agree that the market still has huge untapped potential. With the government pushing to make Moscow a regional financial centre by 2020, the industry also has support from the top. Mareen Goebel reports.
The most exciting derivatives market in Europe at the moment is arguably Russia’s.
Its two domestic exchanges, Moscow Interbank Currency Exchange and the Russian Trading System Stock Exchange, which runs the derivatives market Forts, are complemented by UK-based EDX London.
Generally, futures are traded onshore. Forts, where most futures trading happens, enjoys good liquidity, including from rich individuals and hedge funds.
The options market is largely offshore, where EDX London pumps out between 3m and 3.5m options a month, and has launched its own index.
“Options being traded offshore on EDX is a recent development,”...