Deutsche and CME try to revive Russian rouble futures trading

Deutsche Bank has committed to providing bid and offer prices on Russian rouble futures for the Chicago Mercantile Exchange (CME), in a move designed to capitalise on revived interest in Russia by Western investors. It is the first time the contract has had a committed market-maker since its launch in 1998.

The German bank will, from its London and Moscow offices, provide prices for the US dollar against the rouble for four quarterly contract expirations listed on the CME’s Globex electronic trading platform. The contracts have an underlying value of 2.5 million roubles ($78,500)and are cash settled at expiration.

“Russia is our strategic focus,” said Kay Haigh, Deutsche Bank’s head of European emerging markets. “Improving fundamentals in Russia and the relative value of Russian assets are the major driving forces behind investors’ interest towards the Russian local markets.”

The CME launched Russian rouble futures trading in 1998. The same year saw the Russian government default on debt payments. Trading of the US dollar against the rouble subsequently collapsed, but the market began a slow revival in 2001.

“In recent months, our customers have expressed renewed interest in the Russian rouble contract, and we are very pleased that, for the first time, a market maker will be offering rouble prices on our Globex system,” said Rick Sears, managing director of currency products at the CME.