Moscow Exchange enhancing repo operations with floaters
The Moscow Exchange has recently made a significant expansion to their repo operations with floater bonds. Now, participants in the market can engage in repo transactions with a central counterparty involving floating rate bonds (floaters) that have a maturity of up to one year. This is a big change, as previously the maximum term for repo transactions with floaters was just one week.
As of now, money market participants and their clients have access to repo transactions involving 162 floating-rate bonds from 67 different issuers. This means that the potential collateral base for long-term repo operations has increased by 9.7 trillion rubles. The exchange has emphasized the significance of this expansion, highlighting the broader scope it provides for market participants.
Throughout 11 months of 2024, the average daily volume of repo transactions with deadlines of one month amounted to 36.4 billion rubles. This represents a substantial increase, being 2.3 times higher than the same indicator for the entirety of 2023. The Moscow Exchange’s expansion of repo operations with floaters has opened up new opportunities and possibilities for market participants, offering a greater range of options for conducting business in the financial market.
