RTS Clearing Center, the clearing house for market and infrastructure operator the Russian Trading System (RTS), has begun to accept US dollars as collateral for trades on its Futures and Options on Russian Trading System (FORTS), the RTS Standard markets and within the RTS Money service.
Previously traders had to calculate margin requirements for derivatives by converting the value of the underlying asset(s) into dollars to compare with the contract value, then adjust margin requirements according to changes in both the contract value and the US dollar/ruble exchange rate.
“Using foreign currency as a means of collateral will expand liquidity management opportunities for trading participants as well as substantially simplify and improve trading for clients non-residents on the Russian market,” said Evgeny Serdyukov, derivatives market director at RTS Stock Exchange.
US dollars will be credited to RTS Clearing Center's accounts from 08.00 to 20.00 Moscow standard time.