MOEX Posts Decline in Trading Data in Most Markets in Q2 2022

Moscow Exchange (MOEX), Russia's largest exchange group, has posted its results for Q2 2022. According to the press release, the exchange witnessed a decline in its trading data in most markets, however, its net profit added 19.0% to RUB 8,285.5 mln, and its EBITDA rose by 17.7% to RUB 11,382.1 mln.

Unless stated otherwise, all figures refer to performance in Q2 2022 and all comparisons are with the corresponding period of 2021, based on IFRS financials.

The total market capitalization of the Equities Market as of the end of the second quarter was RUB 40.89 trln (USD 778.90 bln). Fee and commission income from the Equities Market fell by 61.1% on the back of a nearly identical decrease in trading volumes of 63.1%. A slight improvement in effective fee is explained by the ascending tariff structure as trading volumes decrease.

Fees and commissions from the Bond Market decreased by 63.2% as trading volumes excluding overnight bonds shrank by 70.0% amid a backdrop of adverse interest rate environment. Effective fee dynamics was supported by migration of trading volumes to value-added, CCP-based trading modes.

Money Market fee income declined by 22.4%. Trading volumes were up 41.0%. The discrepancy between volume and fee dynamics was mainly attributable to a drop in repo terms and a contraction in FX repo activity. Overall on-exchange repo terms on average decreased by 22% to 4.6 days. Average GCC repo terms fell by 68% to 2.5 days.

Fee income from the FX Market was up 13.6% while trading volumes decreased by 35.8%. The discrepancy in fee and volume dynamics is largely explained by a shift in trading volumes mix towards spot segment. Spot volumes declined 4.4% while swap volumes shrank by 47.1% amid a general economic trend of decreasing FX exposure.

Derivatives Market fee income was down 49.1% as trading volumes declined by 57.8%. The discrepancy between fee income and volumes dynamics is the result of a shift in the structure of trading volumes. The effective fee dynamics was slightly supported by the new asymmetric tariff structure implemented 2 weeks prior to the end of second quarter. The new tariff structure favors liquidity makers.

Sales of software and technical services stood virtually flat, adding just 2.5% YoY. Information services line decreased 14.8% on the back of a significant ruble appreciation. Listing and other services declined 41.0% due to lower primary bond market activity. Financial marketplace services fees accounted for RUB 183.1 mln.