In 2014, Moscow Exchange’s Money Market continued to expand the types of securities admitted for repo. The Exchange also introduced settlement in USD and EUR for interdealer repo in Eurobonds, foreign stocks and depository receipts (DRs). From June to December, the volume of interdealer repo transactions in those securities was RUB 7 trln, or 21% of the total volume of the total interdealer repo volume.
Major changes were made to the regime for repo with the central counterparty (CCP), the fastest growing Money Market instrument. Trading hours were extended, early settlement was introduced and the first Eurobonds were introduced for repo with the CCP.
Moscow Exchange also introduced a money market index, the MOEXREPO Index, which reflects money market rates and improves risk management. The MOEXREPO Index is calculated based on market data on repo transactions with the CCP.
In 2014, the total volume of repo transactions with the CCP rose six-fold to RUB 25.0 trln, with the average daily trading volume reaching RUB 141.2 bln.
The Exchange also offered more liquidity in foreign currency to member banks. In October, the first repo auctions were run with the Bank of Russia with settlement in USD. Such auctions became the major liquidity management instrument for banks. The total value of auctions was USD 24.5 bln. In addition, the Federal Treasury carried out auctions to deposit funds in USD, and the Credit Guarantee Agency deposited funds in RUB with banks via the Exchange.
In 2015, the Exchange plans to launch basket repo with the Bank of Russia and collateral management by NSD. This new product will facilitate trading and settlement opportunities for Russian participants, their costs, reduce risks and improve collateral management in repo.
The Exchange also plans to continue to expand the CCP-cleared repo. The Exchange will also continue preparation for the planned 2016 launch of clearing participation certificates repo. Clearing participation certificates are securities backed by different types of collateral. The new initiative will allow into a universal liquidity management instrument.