OREANDA-NEWS. Moscow Exchange broadened the market making program for OFZ basket futures starting on 1 October. The new program supports bilateral quotes for small lots with 3-5 bps spreads along with large lots with 10-25 bps spreads. Quotes are to be maintained during the main trading session as well as the evening one, which is from 19:00-23:50 MSK.

The new program affords individual investors the opportunity to trade on the long term interest rate market with sufficient liquidity and minimal transaction costs.

Said Roman Sulzhyk, Managing Director of Moscow Exchange”s Derivatives Market, “Interest derivatives, including OFZ futures, are among most complicated and fascinating financial instruments worldwide. For example, in the US they are the most popular futures. An increasing number of Russian participants are getting ready to trade these unique instruments, and we strive to enhance the liquidity of government bond contracts”.

Bank Derzhava was the first market maker to join the program. It is to maintain quotes for futures on 2Y, 4Y, and 10Y OFZs, including during the evening session for 4Y and 10Y contracts. Other participants, including Sberbank CIB, are expected to join in the near future.