The Moscow Exchange (MOEX) released financial results for 2023, which stand out by the increased turnover in trading and fee revenues from the foreign exchange market (FXM). The net profit totaled RUB 60.8 billion; thus, it can be a considerable growth compared to last year. The FX Market on MOEX experienced an increase in dealing volumes that reached RUB 328 trillion (+ 22.5% against 2017), while swap dealings rose by 31.4% and spot dealings by 7.5%.
Growth in FX Trading Volumes and Revenues of Moscow Exchange
Concerning the fee and commission income, it had a 30.4% growth YoY compared to RUB 7.4 billion on an annual basis. According to the publication, the transfer was quickened by a product mix shift towards the less profitable decided swap transactions and the entry into force of the less favorable payment rule, giving priority to liquidity suppliers on the spot market.
The initiative also saw digital asset trading, with MOEX getting a license to operate as a data systems operator of digital financial assets. This was an important milestone as it allowed the trading of digital assets in primary offerings as well as in secondary market A of 2023.
MOEX Net Profit Surges 67.5%
One important determinant of the positive financial results of MOEX in 2023 is the market in FX, which experienced tremendous growth. The net profit figure for the year stood at RUB 60.8 billion, having grown by 67.5%, while the total operating income for the year amounted to RUB 105 billion, representing a growth of 25.3%. A 39.4% growth in fee and commission revenues, amounting to RUB 52.2 billion, or 50% of the total operating income, was registered in the given year.
On the financial services front, several business lines made the turnaround stronger and faster, with financial marketplace services revenue increasing more than two-fold, largely driven by the success of the “Finuslugi” online platform. Besides, the derivatives platform witnessed a remarkable 79.2% increase in fee income thanks to the high volume of commodity derivatives traded on the platform.
Operationally, the Moscow Exchange brought about over 200 corporate bond issues up to the level of RUB 5 trillion in 2023 to attract investors. Together with the retail segment, the market witnessed the creation of an additional 7 million accounts, making a total of 29.7 million.
One of the strategic three-year targets of the Moscow Exchange is to work towards the development of the domestic financial market, bring retail investors in, and cement the position of the Exchange on the international markets. Doing this may refer to the change in dividend policy in order to achieve a target of 100% payout ratio of free cash flows.