SPIMEX and MOEX launching joint project to trade gasoline and diesel futures

MOSCOW. March 19 (Interfax) - The St. Petersburg International Mercantile Exchange (SPIMEX) and the Moscow Exchange intend to sign an agreement to create derivative financial instruments based on SPIMEX indicators, which will be traded on the MOEX, as part of the Exchange Commodity Market 2026 international forum, SPIMEX president Igor Artemyev said during the forum's plenary session.

"According to the agreement, we [SPIMEX] will provide our indices for the underlying assets, namely 92 octane and 95 octane gasoline and diesel, in order to create a futures contract. This futures contract will trade on the Moscow Exchange. Most importantly, we can confirm that this is the first time that our country's two largest exchanges are undertaking such a joint project. I hope very much that it has a bright future, especially since we are just starting with these products, and more will follow," Artemyev said.

Moscow Exchange Executive Board Chairman Viktor Zhidkov at the forum's plenary session added that launching the joint project with the SPIMEX was no easy task.

"These types of projects do not emerge on their own. They depend on the work of two institutions, two teams, who simultaneously address their commercial goals and efficiency issues while also addressing the overall outcome," he said.

Zhidkov said that the new instrument was highly relevant, given the high volatility currently experienced across various commodity markets.

"We see how gold, silver, oil, and petroleum products are constantly making headlines. This worries people, and the ability to accept risk and sell risk to those who own the commodity is a very important element. This provides peace of mind or an opportunity to avoid missing out on additional income and earn additional money," he said.

The exchanges said that the SPIMEX would begin transmitting gasoline and diesel fuel prices in the European part of Russia to the MOEX, allowing for positions in the most liquid fuel and energy products. This should allow retail investors to diversify their portfolios and institutional investors to conduct hedging operations. The contracts will be cash-settled, meaning that they do not require physical delivery, according to the press release.