The Moscow Exchange is out with a new FX pricing model. The company is starting to charge zero fees on its FX market to big liquidity demanders. The changes will apply from the 2nd of September.
Moscow Exchange will transform the asymmetric maker/taker fee structure to apply to USD/RUB trading with same day settlement and a speed bump mechanism (USDRUB_TDB instrument). The step is taken in line with a list of recommendations from the Moscow Exchange FX Market Committee.
While market takers will not be charged zero trading fees, market makers will pay $16 per one million of currency. The standard lot size will be set at $1,000, while the minimum order size remains unchanged at $1,000,000. Therefore, trades can be for any amount exceeding USD 1,000,000 executed with one ticket.
According to the Moscow Exchange’s statement, the move has been made in April 2019 with the launch of the experimental order book to stimulate on-exchange FX liquidity. The move enabled the venue to advance the matching techniques and evaluate their impact on market liquidity.
The minimum lot size is set at $1 million. A simulated random delay is applied at order entry to eliminate arbitrage between technical access of different trading members. Transaction cancellations are exempted from the delay.