Moscow Exchange introduced its new General Clearing Member concept for the FX Market on 1 December 2014. This means Russian and foreign regulated financial companies are able to provide clearing services to brokers and other banks, companies and individuals trading on the FX Market.
General Clearing Members are subject to certain capital pre-requisites. From December 1 this year, appropriately regulated FX Market brokers have been able to become General Clearing Members on Moscow Exchange’s FX Market. “This will allow global banks to become international clearing members and to provide their clients with access to Moscow Exchange’s FX Market,” said Moscow Exchange FX and Money Market Managing Director Igor Marich.
This move follows the direction which Moscow Exchange has been taking in order to place itself as a major venue with global attributes.
According to Moscow Exchange, a general clearing member must have own assets of at least RUB 50 billion or capital of at least RUB 20 billion. It must be properly regulated and it or its direct or indirect majority owner must have a long-term credit rating on its RUB or FX liabilities of no more than one notch below Russia’s sovereign rating which currently stands at BB+/Baa3/ВВВ-.
For the official announcement from Moscow Exchange, click here.