Page 142 - IFR Opportunities in Russian capital markets

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ifrintelligence reports/Opportunities in: Russian Capital Markets
No-one expects Moscow to become a new hub for oil and precious metals trading overnight. RTS vice-president, Roman Goryunov, told journalists at the launch session for oil and gold futures trading that the RTS would be happy if 100,000 contracts were signed by the end of the year after averaging about 2,500 contracts a day in the months after the launch. This is compared to the average 35,000 contracts for Brent trading on the oil futures market in London, where the basic contract unit is 1,000bbl rather than Russia’s basic unit of 10bbl per contract.
Figure 12.1: FORTS trading volumes, Sept 2001–Sept 2006 (RUBbn)
Rbn
16 Average daily turnover (Lhs) 80
Rbn 14 Open positions (Rhs) 70
12 10 8 6 4 2
60 50 40 30 20 10
00 Source: RTS, Aton estimates
Table 12.1: FORTS trading volumes, 2005, 2006 (RUBbn)
Trading volume, Rbn
Source: RTS, Aton estimates
Table 12.2: RTS trading volumes, by instrument, 3Q2006 (RUBbn)
The most popular exchange-traded Number instruments in Russia
Source: RTS, Aton estimates
MICEX Derivatives Market Section
Trading volume, m contracts
Total 3Q06 exchange trading volume, Rbn
11M06 2005 Growth
2,416 81 589 48 310% 69%
1 Gazprom, common shares 986
2 UES, common shares 758
3 LUKOIL, common shares 425
4 Futures and options on the RTS index 220
5 Norilsk Nickel, common shares 212
The total volume of trading in the MICEX Derivatives Market Section in 2006 came to RUB894.3bn (US$33.1bn), nearly a five-fold increase on the previous year. The average open RUB/USD contract in the MICEX derivatives market was US$1.52bn.
MICEX added futures on interest rates of the interbank money market (MosIBOR and MosPrimeRate) products last year, which got off to a good start with a total volume of RUB3.6bn. To promote the development of the derivatives market, MICEX widened the range of traded instruments by launching trading in futures and options on the MICEX Index and other stock assets and improving the risk management system.
Russian derivatives trading in London
Derivative trading of Russian stocks was also launched in London in December 2006. The EDX London launched its Russian derivatives service, the Russian IOB Equity Derivatives Service, offering equity and index derivatives based on Russian Depositary Receipt instruments.
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