Moscow Exchange sees a 35% income growth in the FX market 2022
Please note that we are not authorised to provide any investment advice. The content on this page is for information purposes only.
Moscow Exchange (MOEX) recently published its financial report for 2022, noticing a significant decline in overall fees and commission income, which dropped by 9.8% to RUB 37.5 billion. However, the exchange operator also pointed out that non-residents were cut off from trading and that the RUB asset prices have declined, both of which were major factors that influenced the drop.
As for the annual fees and commissions involving markets such as bonds, equity, currency, and derivatives — all saw a decrease last year. Surprisingly, however, the trend was completely opposite when it came to the exchange’s forex markets offered by the Russian exchange.
Details of the report
The exchange reported a 35.1% increase when it comes to fees and commission income in the forex sector, hitting RUB 5.66 billion last year. The figure jumped by 30.7% to 1.5 billion rubles in Q4 2022. At the same time, however, the exchange reported a decline in the trading volume of the forex market. The exact dip was 16.8% when it comes to the annual trading demand involving FX instruments.
As the year progressed, the figure continued to drop, eventually falling by another 37.8% in the fourth quarter last year. As for the total 2022, the exchange reported its total forex market trading volume as RUB 267.8 trillion. As far as the trading demand of 2022 is concerned, MOEX only saw an improvement in the money market. Even so, it still failed to turn the fees and commission income into positive growth.
Moving on, Moscow Exchange’s statement says that the fee income from information services went down by 5.7% annually, sinking to RUB 1.11 billion. Listing and other services saw a much greater decline of 24.3%, going down to RUB 578 million. However, income from software sale and tech services went up considerably, growing by 7.7% to RUB 1.22 billion. Meanwhile, financial marketplace services surged by 50.4%, hitting the figure of RUB 747.4 million.
The exchange further saw an increase in the cost of operation, which went up by 16.2%. As such, it remained under the guidance of 20% growth, and the figure managed to stay the same throughout the fourth quarter of 2022. MOAX finally closed the year with its EBITDA 28.4% higher, reaching RUB 49.7 billion. Meanwhile, the net profit that it managed to secure was RUB 36.3 billion, which represents a 29.2% increase.
MOEX also extended the trading hours in September, going back to early morning FX and evening stock trading, but it stopped using USD as collateral for underwriting transactions. It also suspended trading in JPY indefinitely on the currency market, explaining the decision by pointing out potential risks, as well as difficulties in Japanese yen-based settlements. JPY was also removed as an acceptable collateral for transactions.
