It has been reported earlier that Deutsche Borse and Moscow Exchange plan to cooperate in exchange infrastructure, product development, IT, clearing, settlement & custody, as well as outreach to issuers, licensed participants and investors.

According to Afanasiev, the exchanges will cooperate in IT, common product development and smart order routing, i.e. trading data exchange service for clients. "We are also talking about setting up a trading and clearing link eventually, as this project is complex and time consuming”, he noted.

He said that trading data exchange aims to show foreign investors the Russian exchange trading dynamics, "so that they can see our quotes in their regular window”. “This way foreign investors can get accustomed to products traded in Moscow”, he explained.

The joint effort may be realized next year. "We will soon work out the details of our action plan with Deutsche Borse”, he said.

Afanasiev also said that the exchanges plan risk management and collateral management cross training. "They have the world’s best experience in collateral management and replacement", he said.

It has been reported earlier that National Settlement Depositary (part of Moscow Exchange Group) is developing collateral management and replacement software for OTC repo.

According to Afanasiev, the project is supported by the Central Bank, since it will boost bond market liquidity.

Afanasiev noted that the introduction of collateral management may raise market volume “tens of percent".

Trading infrastructure, Project Group №1