From March 1, the Moscow Exchange began trading from 7:00 Moscow time in the foreign exchange, derivatives markets and precious metals. In the long term, the exchange plans to provide customers with the ability to trade 24 hours a day. “We are looking towards 24/5. And then – and 24/7 “, – said the representative of the Moscow Exchange.
How important are these changes for investors and asset prices? Nikolay Dudchenko, an independent financial analyst, answered a question from Fortrader magazine.
– According to Igor Marich, Managing Director for Sales and Business Development: “The Exchange is launching morning trading as it sees great interest from all categories of clients. The influx of individuals into the exchange markets is one of the important factors for launching early trading. Retail accounts for 14% of the turnover of the foreign exchange spot market and 42% of the derivatives market. Most of our clients are from the European part of the country, but in terms of customer base growth, many eastern regions are now showing outstripping rates. We give the opportunity to organizations and people who live in the Urals, Siberia, the Far East to participate in the auction at a convenient time for them.
We are targeting investors from Southeast Asia, primarily from India, Singapore, Hong Kong, where there is a demand for ruble instruments. We see this demand ourselves, and brokers working in the region tell us about it. The longer the crossing time in trading hours, the more liquidity we can bring to Moscow. We also expect an increase in yuan turnover amid growing trade between our country and China and interest in this currency in the world. “
Thus, the purpose of changing the operating mode of the sites is quite clear:
- Increasing the interest of bidders;
- Increased liquidity.
It is quite possible that the effect will affect market risks as well, since an increase in the time of trading sessions can have a positive effect on smoothing volatility.
Of course, one should not forget about the positive effect both for brokers and for the exchange itself due to the possibility of an increase in commission. As for investors, it is quite possible that the effect will also be good due to the improvement of the quality of the used market analysis tools.
In short, this decision can only be welcomed.