Moscow Exchange posts 13.6% Y/Y rise in FX Market fee income in Q2 2022
Moscow Exchange (MOEX) today reported key financial metrics for the second quarter of 2022, with FX market fee income marking a rise in the face of lower trading volumes.
Fee and commission (F&C) income decreased by 18.8% year-on-year to RUB 8,056.3 million.
During the quarter, MOEX experienced a decline in trading volumes that translated into F&C income contraction. The decline was mainly due to the absence of non-resident trading, lower RUB asset price levels and elevated RUB interest rates.
EBITDA rose by 17.7% from the year-ago period to RUB 11,382.1 million. Net profit added 19.0% to RUB 8,285.5 million.
The total market capitalization of the Equities Market as of the end of the second quarter was RUB 40.89 trln (USD 778.90 bln). Fee and commission income from the Equities Market fell by 61.1% due to a nearly identical decrease in trading volumes of 63.1%. A slight improvement in effective fee is explained by the ascending tariff structure as trading volumes decrease.
Money Market fee income declined by 22.4%. Trading volumes were up 41.0%. The discrepancy between volume and fee dynamics was mainly attributable to a drop in repo terms and a contraction in FX repo activity.
Fee income from the FX Market was up 13.6% while trading volumes decreased by 35.8%. The discrepancy in fee and volume dynamics is largely explained by a shift in trading volumes mix towards spot segment. Spot volumes declined 4.4% while swap volumes shrank by 47.1% amid a general economic trend of decreasing FX exposure.
Derivatives Market fee income was down 49.1% as trading volumes declined by 57.8%. The discrepancy between fee income and volumes dynamics is the result of a shift in the structure of trading volumes.
The effective fee dynamics was slightly supported by the new asymmetric tariff structure implemented 2 weeks prior to the end of second quarter. The new tariff structure favors liquidity makers.
Sales of software and technical services stood virtually flat, adding just 2.5% YoY. Information services line decreased 14.8% on the back of a significant ruble appreciation. Listing and other services declined 41.0% due to lower primary bond market activity. Financial marketplace services fees accounted for RUB 183.1 mln.