Initial margin for futures contracts to be reduced

Starting from September 15, 2010 the size of Initial Margin for all futures contracts on the UX Index traded on the Derivatives market section of the Ukrainian Exchange (UX-12.10, UX-03.11) will be reduced to 20%.

"Existence of two full-fledged markets (cash and derivatives markets) has a very positive impact on their volatility level as these markets stabilize each other, says Oleg Tkachenko, CEO, Ukrainian Exchange. Reduced volatility on the cash market allows us reducing the size of the initial margin on the derivatives market. We are certain that this step is sure to make investors’ transactions more effective and strengthen the UX Index’s position as the most liquid instrument on the Ukrainian market". 

It will be recalled that the official launch of trading of futures contracts (May 27, 2010) was preceded by a period of significant cash market fluctuations, which resulted in Initial Margin size being set at a level of 30%. However, already a month after the derivatives market was launched the Initial Margin size was reduced to 25%.

For further information, please contact the Public Relations Department at (044) 495-7474.