Moscow Exchange to launch bond market evening trade on September 27

TASS Russian News Agency | Sep 13, 2021 at 6:08 PM

MOSCOW, September 13. / TASS /. The Moscow Exchange will launch evening trading on the bond market on September 27, the Moscow Exchange's director of the debt market department Gleb Shevelenkov said on Monday.

"We have a remarkable feature the concentration of liquidity on the stock exchange, relying on it, we can increase the trading hours of the bond market. The main reason why we are starting evening trading on the bond marketis the colossal arrival of individuals and the opportunity for individuals to participate via digital access in the market that they use today," Shevelenkov said. The evening trade will be introduced in stages, and starting on the evening of September 27 all deals with Eurobonds and federal loan bonds will be available, he explained. At the same time, in addition to the main trading, in the evening hours, the clients will also have access to the negotiated deals mode, negotiated deals with the central counterparty (CCP) and REPO. Trade concluded in the main trading mode T +, both in the main and in the evening session, will be settled on the same day (T+1).

The Exchange also plans to expand the list of Russian companies' Eurobonds available to individuals. Currently, the derivatives and foreign exchange markets on the Moscow Exchange are traded from 7:00 to 23:50 Moscow time, the stock market from 10:00 to 23:50 Moscow time.

Earlier, the Exchange announced plans to launch an early session on the stock market starting at 7:00 am in November-December. However, Shevelenkov does not exclude morning trading starting at 7 am on the bond market, given the emergence of brokers' demand for this service, as well as the willingness of market makers to support this product during the morning hours.r

"The main constraint that we have for starting trade in the morning is not technical, but how the market will behave in terms of spreads, prices. We would not want to be in the situation where someone buys high and sells low. To reduce this risk, we will have to pull up the market-makers, and on the bond market this is a more alarming story, because here you cannot manage it with simple algorithms. Here you have to keep a close eye," Shevelenkov explained.