Moscow Exchange adds sector index futures for trading
Moscow Exchange (MOEX) continues to expand its lineup of trading instruments. On 8 February 2022, the Moscow Exchange Derivatives Market will start trading in sector index futures.
The new futures contracts will broaden the range of trading strategies available to private and institutional investors, including opportunities to gain exposure to select sectors of the Russian economy and the addition of new hedging opportunities.
Futures contracts on the following sector indices will be available to trading members and their clients:
- MOEX Oil & Gas Sector Index (MOEXOG), short code OGI;
- MOEX Metals & Mining Index (MOEXMM), short code MMI;
- MOEX Financials Index (MOEXFN), short code FNI;
- MOEX Consumer Index (MOEXCN), short code CNI.
The tick is 10 points; the tick value is RUB 1. The amount of initial margin tentatively will not exceed RUB 1.5 thousand per contract. Futures series with settlement in June and September 2022 will be offered.
Moscow Exchange has been regularly expanding its offering. In January, for instance, the Moscow Exchange Derivatives Market started trading in a cash-settled futures contract on the Moscow Real Estate Index, which is calculated on the basis of actual mortgage transactions.
The new instrument provides additional opportunities for financial market participants and their clients by:
- allowing the widest range of clients to invest in the Moscow real estate market with little capital, including those saving for a down payment on a mortgage;
- expanding the range of investor trading strategies, including the option for short selling;
- offering issuers of structured products and asset management companies to create new investment vehicles, and for real estate developers to hedge market risk.