The stock exchange is going to start trading gold and silver by the end of this year, and platinum and palladium in 2014. Trading physical metals is expected to boost liquidity in the market and attract more participants.
Russia has so far only been trading futures on gold and silver,
not dealing with real metals.
Gold has been occasionally sold on the over-the-counter market
and the only benchmark for price was the Central bank’s
quotations, Gazeta.ru reports. Now gold will get the market
price in rubles.
“We are a gold-exporting country. We produce a large number of
precious metals. However, the trade volume is still significantly
lagging behind our peers. Our commodity market is not
transparent," Gazeta.ru quotes the director of the commodity
market of the Moscow exchange, Mikhail Orlenko.
Spot metal trading will be based on the platform of the existing
foreign exchange market. Credit institutions licensed to conduct
operations with precious metals and non-banking professional
brokers will be the main players on the market, Gazeta,ru quotes
the presentation by the bourse.
The Moscow stock exchange plans to transport precious metals from
production companies, keep them in its own stores and deliver to
the buyer the next day.
The launch of trading in gold and silver on the Moscow exchange
will boost liquidity on the market and attract more participants
by these new financial instruments, RBC quotes Sberbank as
commenting.