OREANDA-NEWS. June 9, 2011. On June 6, 2011 futures contracts on baskets of federal loan bonds were settled for the first time.

Volume of settled contracts amounted to 3% from a maximum value of open interest volume took place since the launch of trading in these contracts. This figure is in line with practices on global exchanges where trading in futures on baskets of bonds is held. The contracts were settled by Troika Dialog, Renaissance Capital, NOMOS-BANK, Project Financing Bank, Derzhava Bank.

Trading in futures on baskets of federal loan bonds started on February 17, 2011. Main trading participants are holders of portfolios consisted of bonds, i.e. banks and investment companies.

Futures on a basket of federal loan bonds allow market participants to manage efficiently a portfolio of debt instruments and hedge interest rate risks in the long segment of the yield curve. This instrument provides an opportunity to make profits on both rising and falling markets  (using the opportunity to sell short) as well as to form strategies based on changes of interest rates structure.

FORTS, the derivatives market of RTS, is the leading trading venue for futures and options in Russia. Trading on FORTS started in September 2001. According to the Futures Industry Association the derivatives market of RTS is among the TOP-10 global derivatives exchanges based on the results of 2010. At present FORTS has the widest range of instruments in Russia. These are 54 contracts (40 futures and 14 options) on RTS Index, RTS Standard Index, shares of Russian companies, short term interest rates, currency, oil, gasoil, power, gold, silver, and sugar.