Moscow Exchange (MOEX) has announced yesterday that it has signed a Memorandum of Understanding (MoU) with the China Foreign Exchange Trade System (CFETS).
The MoU aims to unify the liquidity pools for trading in the RMB/RUB currency pair on the two platforms.
A joint working group has already been set up to conduct research and explore feasible mechanisms to unify RMB/RUB trading and matching.
The group will also determine the optimal unification model, plus the adoption of important controls and reporting for compliance with Russian and Chinese regulation.
Igor Marich commented on the news:
MOEX has steadily expanded its cooperation with leading Chinese exchanges and financial institutions. Collaboration between MOEX and the CFETS, the leading FX platforms in Russia and China, respectively, is intended to improve pricing in RMB/RUB instruments and stimulate settlement in RMB and RUB. Better links between the countries’ financial institutions should help to facilitate more cross-border investments.
ZHANG Cuiwei added:
Amid China-Russia relations upgraded to a comprehensive strategic partnership of coordination, CFETS and MOEX signed the MoU to enhance mutual understanding and drive coordinated development. As part of the MoU, the two sides will also jointly explore business projects including the feasibility of a unified liquidity pool for CNY/RUB. Such efforts will further expand the opening-up of China-Russia financial markets, improve trade and investment liberalization and deepen China’s financial cooperation with countries participating in the Belt and Road Initiative.