Moscow Exchange to launch gold fix transactions March 23

MOSCOW. March 17 (Interfax) - The Moscow Exchange will offer precious metal market participants the option of trading gold at the exchange rate that corresponds to the value of the RUGOLD index, as well as at the GOLDFIXME rate starting March 23, the exchange said in a press release.

"The new instruments will enable participants to carry out transactions with gold at a fixed market price and not depend on intraday volatility, which is particularly important for large institutional players for whom stability is important in planning purchases and sales," the exchange said.

Market participants will also be able to make transactions with gold, silver, platinum and palladium over the counter using a service to anonymously request quotes from the largest providers of liquidity - banks, gold mining companies, processors and so on - with settlements through the central counterparty starting March 23.

"Amid the volatility on the precious metals market, we are taking an important step forward in developing trading infrastructure and introducing mechanisms that make it possible to carry out transactions with gold at fixed, market-set prices without worrying about the ups and downs of the exchange rate in the course of the trading day. Participants can calmly plan their operations and more effectively hedge possible risks," the Moscow Exchange's director of forex and precious metals markets, Arina Kostryukova said.

"And anonymous requesting of quotes for all four metals makes the market even more transparent and convenient. It is possible to get the best price or establish demand for the metal and immediately make a deal for a large amount without influencing pricing in the order book," Kostryukova said.