Moscow exchange launched ruble contracts for gold

Trading in gold futures denominated in Russian rubles commenced on the Moscow Exchange.

Currency futures for the precious metal may be pushed by new contracts.

The average daily volume of transactions for currency futures for gold this year has exceeded 25 billion rubles, making them one of the five most popular derivatives market instruments.

The Moscow Exchange initiated trading in ruble gold futures on Wednesday. According to Kommersant, the new contract will be unaffected by changes in the dollar exchange rate, and could be popular.

The new ruble futures instrument has a lower entry threshold, but with a lower built-in shoulder (about two times lower) than other tools. This instrument is calculated and does not involve any risk of delivery of the underlying asset.

Almost 13 million rubles worth of trades for the new instrument, which began on June 28, were successful. This trading volume was higher than that of palladium futures.

Maria Patrikeyeva, head of the derivatives market of the Moscow Exchange, stated that the new contract will provide clients, including producers and consumers of the precious metal, with greater trading opportunities. This will allow them to hedge price risks and improve the efficiency of their business.

Otkritie Investments has stated that the introduction of ruble futures will be beneficial as an alternative to purchasing gold on the spot market. This will reduce the influence of the dollar's volatility on investors' profits.

According to Ingosstrakh-Investments Management Company, the instrument will be used for diversification, hedging, and arbitrage. When the ruble instrument is no longer available, legal entities that currently account for two-thirds of the currency futures and gold trading volume will be able to switch to it.