Moscow Exchange money market allows ruble, yuan transactions for variable rates

MOSCOW. Feb 1 (Interfax) - Moscow Exchange money market participants were given the option to enter into repo transactions, place deposits with the central counterparty and take loans in Russian rubles and Chinese yuan with variable interest rates as of January 30, the exchange said in a press release.

The new instruments will enable trading participants to eliminate interest risk when managing liquidity in rubles and yuan for long periods.

Transactions with variable rates are concluded in the repo with central counterparty, repo with clearing participation certificates and inter-dealer repo regimes.

The variable rate in transactions is a combination of the indicator and spread, the size of which is set by the parties. The indicators for transactions are the RUSFAR (RUSFARCNY) family of indexes, the Bank of Russia's key rate and the RUONIA.

Liquidity for repo with clearing participation certificates with variable rates is supported by market makers.

On the first day, market participants carried out repo with clearing participation certificates transactions with the RUSFAR indicator and maturity of three months.

"The new segment of the money market will help to lengthen the duration of the placement of funds, and increase the flexibility of liquidity management and the efficiency of financial planning. We are confident that variable rate transactions will be sought after by clients and will take a place alongside our flagship products - repo with central counterparty and clearing participation certificates," Moscow Exchange money market director Sergei Titov was quoted as saying in the release.