Moscow stock exchange trading volumes to set new historical record amid pandemic

Total trading volume across markets on the Moscow Exchange could reach 924 trillion rubles ($12.34 trillion) in 2020, setting an all-time high, according to the Chairman of the Executive Board and CEO Yury Denisov.

While the official results of the year have not been announced so far, the head of the Moscow Exchange is confident that 2020 is on track to become record-breaking for the platform. Speaking to journalists earlier this month, Denisov said that trading volumes have risen as much as 18 percent over the past 12 months. 

The explosive growth was mostly driven by the equity market, which skyrocketed 93 percent, according to the official. At the same time, turnover of the derivatives market jumped 57 percent, while trading volumes on the forex and precious metals markets rose by 43 percent and 50 percent respectively. 

The previous record on the Moscow Exchange was set in 2017, when annual total trading volumes reached 887.6 trillion rubles. 

According to Denisov, coronavirus restrictions could have driven increased activity on the financial markets. As the virus started rapidly spreading across the globe, Russia imposed weeks-long quarantine in April, with authorities ordering most of the population to stay at home. 

“People had more time and opportunities to develop digital technologies at home and get experience how to open a brokerage account without leaving home,” Denisov said. 

Russia saw retail investment boom this year, as a record number of people rushed to pile into stocks. According to the Moscow Exchange CEO, some 4.7 million retail investors came to the market, which is more than three times higher than the year before. 

Russian regulators earlier voiced concerns over the massive inflow of inexperienced investors, fearing that people lacking investment background might lose their money. Earlier this year, the country’s central bank supported the idea to introduce a special exam to prevent unqualified investors from acquiring risky assets.

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