RUSSIA: Russia's Trading System (RTS) has started for the first time trading in Urals oil future contracts of a financial settlement basis
Record ID:
344389
RUSSIA: Russia's Trading System (RTS) has started for the first time trading in Urals oil future contracts of a financial settlement basis
- Title: RUSSIA: Russia's Trading System (RTS) has started for the first time trading in Urals oil future contracts of a financial settlement basis
- Date: 9th June 2006
- Summary: (EU)MOSCOW, RUSSIA (JUNE 8, 2006) (REUTERS) WIDE OF PRESIDENT OF RUSSIA'S TRADING SYSTEM (RTS) SITTING BEHIND TABLE WITH OTHER OFFICIALS FROM RTS
- Embargoed: 24th June 2006 13:00
- Keywords:
- Topics: Energy
- Reuters ID: LVA2I2CGLP7GE1F832X67J2FQESD
- Story Text: Russia's Trading System (RTS) on Thursday (June 8) started for the first time trading in Urals oil future contracts of a financial settlement basis.
The trading started at 1030 pm Moscow time. the crude futures had a slow start but officials form the local RTS bourse said liquidity would rise soon to make the instrument one of Russia's best.
"The most import moment is that for the first time in the world the widest circle of Russian and foreign investors as well as private individuals have been offered Urals oil future contracts. I want to say that the world oil prices are currently set through future contracts on Brent crude. Therefore RTS created a completely new oil futures contract and today we are beginning the trade in them," said Oleg Safonov, President of Russia's trading system.
The launch of RTS Urals futures comes at a time of increased pressure form the Kremlin to set up a rouble-based physical exchange in Russia to turn the big-volume Urals grade into a global benchmark.
RTS's futures do not foresee physical delivery but only financial settlement and the bourses executives have said they see them primarily as a good financial instrument, specifically for hedging and arbitrage operations.
On Thursday, the stock exchange recorded a turnover of only 3 million U.S. dollars in Urals July futures in the first six hours of trading with no deals recorded for fuel oil or other refined products. - Copyright Holder: REUTERS
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