RUSSIA: MOEX Starts Trading in Wheat Index Derivatives

Thursday September 1 2022

On 31^st August 2022, Moscow Exchange announced that trading began on the derivatives market of the Exchange for the settlement futures contract for the Russian wheat index, as well as margined options for this contract. 

Access to new tools is provided to customers by more than 30 brokerage companies and banks. Liquidity is supported by UGC Group. 

On the first day of trading, the volume of operations with new instruments exceeded 3.5 million rubles or 518 contracts, transactions in all series of futures and options were concluded by clients. 

The underlying asset of the futures contract is the wheat exchange index, calculated by the National Commodity Exchange (NTB), part of the Moscow Exchange Group. The value of the index is calculated based on the results of the UGC Group’s commodity auctions for the purchase of wheat, which are held on NTBs from August 2021. 

In June, the wheat index received the approval of the Bank of Russia, which confirmed its status as a reliable and transparent indicator for the Russian market, which it became due to stable volumes of daily purchases and ease of access of participants to trading. 

Futures contracts with execution in September, October, November and December 2022 are allowed to trade. The contract execution price is equal to the arithmetic mean of the wheat index on the terms of delivery of CPT Novorossiysk for the calendar month preceding the date of execution of the contract. 

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