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The table describes RUB futures - no the current RUB.

And the volume on these settles is quite small.



That's because markets are closed. And I am wondering if they will even open today.


CME currency futures opened 3 hours ago.


Aren't they breaking the embargo by trading in Ruble futures?


There are no embargoes on currency futures in the US. So far as I know there aren’t any embargoes on delivering rubles as part of a futures cash settlement either. Getting those rubles may get difficult. But currency futures are dollar cash settled…


Thank you.


My understanding is that futures are simply a contract between two parties. Ruble futures don't necessarily have to interact with Russia or any Russian individual.


There is no embargo. At the moment, US has imposed sanctions directly on Putin and other top Russian leaders, and a small number of Russian banks have been cut off from Swift. You are free to buy and sell Russian currency and stock if you want.


That was until Russia’s central bank started to halt sales of stock. They’ve sanctioned themselves! (Very bad for any future investment inflows)

https://www.reuters.com/business/russian-cbank-orders-block-...


If they do, expect circuit breakers to stop them.


I don't believe there are circuit breakers on most forex markets? Please correct me if I'm wrong.

Unless you meant the Russian stock market, which is closed tomorrow I believe.


CME forex futures has circuit breakers.

There is no such thing as a “forex market”. You are trading directly with a counterparty in forex. Those contracts do sometimes stipulate circuit breakers.


> There is no such thing as a “forex market”. You are trading directly with a counterparty in forex.

That’s called a market. You probably mean a market maker, who may buy or sell a security at a market price without an available counter party. Any market can have a circuit breaker. But usually forex doesn’t because the whole point of the market is to provide a way to convert currencies when needed, compared to stock markets where the main goal is to efficiently allocate capital.


To be specific there is no exchange or benchmark price for forex. When you trade forex you are directly dealing with the provider of the other side of the price vs a matching engine provided by a disinterested third party.

There are multi-dealer platforms that abstract this but you are still directly covered by your contract with the partner counterparty.

Most direct api integrations and multi-dealer platforms implement circuit breakers but they aren’t regulated like equities or futures exchanges.

Compare that to the link which is a forex futures exchange which is subject to cftc regulations around circuit breakers.


Directly dealing with a counter party is called a market. A “market maker” is called so because they literally create a market by ensuring there is always is a counter party.


The vocabulary you are using is not the way it’s used typically.

Perhaps you have some point different to mine but I can’t discern it because to me you are speaking a different language.

The important thing to understand is that circuit breakers as used at nyse or cme or cboe or lse are only possible because you aren’t dealing directly with your counterparty. There is an intermediary.

So perhaps we agree?


There aren't. It's a distributed market, there is no way to effectively stop trading.


Not sure what your point is. Futures on currencies are basically spot aside for some interest rate differences.

The point is, if the future goes down 30%, the spot is basically down 30%. Any other affects are like 3rd order at that point.


So why should the 4-month future rate (30 percent) determine the spot more strongly than the 1-month rate (20 percent)? When the latter has 100x the volume?


New York and European markets have not yet opened for the week. The futures are roughly a reliable indicator of where the market will open, low volume or not.




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