Moscow Exchange launched dollar-denominated bond and repo… (доллар · сделка · валютный)
Moscow Exchange launched dollar-denominated bond and repo transactions. For positions open in dollars on the foreign exchange market, it is now possible to trade bonds denominated in dollars, euros, and Chinese yuan.
Consensus
- Moscow Exchange launched trading in bonds and repo transactions in U.S. dollars starting July 6.
- The new trading mechanism allows for deals with a term of one to seven settlement days.
- Participants can conduct transactions involving dollar-denominated bonds, euro-denominated bonds, and yuan-denominated bonds when they have an open position in dollars on the foreign exchange market.
- Approximately 200 bond issues are included in the list eligible for dollar-denominated trading, including Eurobonds, replacement bonds, and corporate bonds with foreign currency denominations.
- The launch aims to expand investment tools, improve liquidity management, reduce interest rate risk, and enhance pricing quality of securities.
- Direct exchange trading in physical U.S. dollars has been suspended due to sanctions.
- Trading in the USD/RUB currency pair was moved from over-the-counter to a centralized exchange trading system (CETS) on Moscow Exchange.
Points of divergence
- The launch of dollar-denominated bond and repo trading is intended to expand the toolkit for capital managers, improve liquidity and interest rate risk management, and enhance pricing quality of securities. — kommersant
- Market participants concluded transactions with the new instrument on the first day of trading. — interfax
Coverage (2 sources)
- Moscow Exchange Allows Trading of Dollar-Bonded Currency Bonds — Коммерсантъ
- Moscow Exchange launches dollar-denominated bond and repo transactions — Интерфакс