16 Dec 2022 18:16

Moscow Exchange working with correspondent banks to complete deals in Swiss francs - Nabiullina

MOSCOW. Dec 16 (Interfax) - The Moscow Exchange is working with correspondent banks to complete deals in Swiss francs, Central Bank Governor Elvira Nabiullina told reporters.

"I am aware of this problem. The Moscow Exchange has indeed stopped trading in the Swiss franc, the reason being that there were difficulties with settlements due to the restriction on the part of the Swiss. The Moscow Exchange is now working with correspondent banks in order to complete settlements in Swiss francs," she said.

Switzerland on June 10 joined EU restrictions, which led to a freeze on assets in Swiss francs. After the Moscow Exchange suspended trading in Swiss francs from June 14, bidders and the financial infrastructure faced difficulties in making settlements in Swiss francs. Restrictions affected CHF/RUB and USD/CHF spot and swaps on the exchange and OTC.

The exchange then said obligations under previously concluded transactions continue to be honored as usual, but at the same time, it was possible to extend the terms for crediting Swiss francs to customer accounts.

It was also reported that the Moscow Exchange group is working with correspondent banks with a view to a possible resumption of trading, which will be announced later.

The Moscow Exchange, as an element of the market infrastructure, seeks "to support all markets in an operational position", though this is not always possible, Sergei Shvetsov, chairman of the exchange's supervisory board, said on September 23, recalling that the equities exchange has closed trading in the Swiss francs and the pound sterling.

"This is because of the drop in demand in the economy for the conversions, as well as owing to the inability of the infrastructure to provide the service effectively because of limitations in the settlements," Shvetsov said.