Operating and Financial Results

Moscow Exchange enjoyed another successful year with net income increasing by 38.1% YoY to RUB 15.99 bln. Fee and commission income grew substantially from the FX Market (up 41.3% YoY), Money Market (up 27.8% YoY) and Equity Market (up 25.8% YoY). Fee and commission income from depository and settlement services also increased considerably (up 37.3% YoY). Operating expenses increased by only 5.2%, representing half the rate of inflation.

Operating income increased 23.5% YoY to RUB 30.39 bln driven by growth in fee and commission income from the FX, Money and Equity Markets, interest income and income from depository and settlement services.

FX Market. FX Market turnover increased 46.5% YoY to RUB 228.5 trln. Spot and swap trades made up 34% and 66% of FX Market volumes, respectively. The average daily turnover grew 22% YoY to USD 23.8 bln.

Fee and commission income from the FX Market increased 41.3% YoY to RUB 3.41 bln.

Money Market. The total trading volume on the Money Market including repos and deposit and credit market transactions declined 7.4% YoY to RUB 204.38 trln, largely due to a move to 1-week repo auctions with the Bank of Russia instead of 1-day repo, which led to a lower number of repo trades, though with longer maturity. The market’s average daily turnover was RUB 814.2 bln in 2014. Fee and commission income from the Money Market increased by 27.8% YoY to RUB 3.24 bln.

Derivatives Market. The trading volume in contract terms increased 24.6% YoY and amounted to 1.41 bln contracts totalling RUB 61.32 trln, largely driven by FX derivatives. Open interest reached RUB 457.3 bln by year-end 2014, a 17.3% YoY increase. The growth shows increasing depth of the market thanks to new participants, and also reflects the elevated volatility of FX rates. Fee and commission income from the Derivatives Market increased 4.5% YoY to RUB 1.64 bln.

The market’s average daily turnover was RUB 244.8 bln in 2014 (up 25.5%). The average open interest was RUB 549.3 bln (up 37.64%). FX contracts made up 51% of the total trading volume, while futures on equities indices accounted for 41%.

Equity and Bond Market. Total trading volume in stocks, DRs and mutual fund units in 2014 was RUB 10.28 trln, up 18.1% YoY. Fee and commission income from the Equity Market rose 25.8% YoY to RUB 1.77 bln. The Equity Market’s total capitalisation was RUB 23.2 trln (US$ 385.9 bln) by year-end 2014.

The total trading volume in bonds in 2014 was RUB 10.6 trln, down 30.8% YoY. Fee and commission income from the Bond Market declined 25.0% YoY to RUB 1.03 bln.

Listing and other service fees increased 61.0% to RUB 351.03 mln.

Depository and Settlement Services. Fee and commission income from depository and settlement services increased 37.3% to RUB 3.19 bln. The volume of assets on deposit at the NSD increased to RUB 24.94 trln as of 31 December 2014, up from RUB 21.77 trln at the end of 2013, and averaged RUB 22.82 trln for 2014.

Other Revenue. Other revenue remained flat and amounted to RUB 966.90 mln. The biggest contributors to this line were revenue from the sale of software and technical services (RUB 496.17 mln) and revenue from the sale of market data (RUB 436.17 mln, up 44.8%).

Interest & Other Finance Income. Interest and other finance income increased 21.5% YoY to RUB 14.28 bln, due to a significant increase in funds available for investments and higher interest rates.

Cash and Cash Equivalents. Moscow Exchange’s cash position at year-end 2014 totalled RUB 57.65 bln. The Exchange had no debt as of 31 December 2014.

Expenses. Operating expenses in 2014 grew by 5.2% YoY to RUB 10.37 bln, more than two times lower than Russia’s inflation rate. Personnel expenses remained the major cost item, comprising 52.0% of total costs. Administrative and other operating expenses declined by 1.0% YoY in 2014 due to lower spending on professional services, market makers and taxes, other than income tax.

Capital expenditure for FY 2014 totalled RUB 784 mln, of which RUB 530 mln was spent on software purchases and development.

Financial Highlights

RUB, mln

FY 2014

FY 2013


Operating income

30 394.04

24 605.97


Fee and commission income

15 585.95

12 792.12


Net interest and other finance income

14 279.41

11 754.94


Other operating income




Operating profit

20 020.78

14 748.98


Net profit

15 993.17

11 581.69


Basic earnings per share, RUB





21 616.16

16 393.08


EBITDA margin



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