Moscow Exchange mulls launching trade in futures for sugar

MOSCOW, May 11 (PRIME) -- The Moscow Exchange is working on launching trade in the cash-settled futures deals for sugar to be calculated on the basis of internal prices, Nikita Zakharov, CEO of the Moscow Exchange’s National Mercantile Exchange (NAMEX), told PRIME on Thursday.

“The colleagues from the Moscow Exchange’s Derivatives Market and we are working on the sugar futures. We see the internal price as the underlying asset because Russia exports almost no sugar, meaning its price depends mostly on internal factors,” he said.

“We are considering over-the-counter deals as the basis for calculation of the index, and we will look into the possibility of using the exchange market for the index in the future because sugar trade doubled on the NAMEX over the past year.”

Currently, the instruments of the derivatives market include sugar futures traded on the Intercontinental Exchange.

The exchange is also considering the launch of the futures for sunflower oil export prices and commodity auctions for milk and dairy products.

“The next point of interest is poultry meat and pork, but we have no clear dates here. We would also like to engage in fertilizers, but the sector is under state regulation right now, which is bad for the exchange trade,” Zakharov said.

End