The Moscow Exchange (MOEX) has reported resilient second-quarter 2025 results, demonstrating the strength of its diversified business model and expanding retail base. Despite mounting technology costs and heavy investment in infrastructure, the Exchange delivered robust profit growth while continuing to innovate with new products and services.
Fee and commission income rose to RUB 17.8 billion, underpinned by strong client activity, product launches, and higher trading volumes. Net interest income reached RUB 14.3 billion, while the share of fees and commissions in operating income stood at 56%, underlining MOEX’s focus on a sustainable revenue mix.
Operating expenses declined by 2.1%, reflecting reduced personnel costs from the unwinding of bonus accruals, even as headcount grew 24.5% year-on-year to strengthen IT functions. Net profit reached RUB 15.1 billion, while the cost-to-income ratio stood at a competitive 37.9%.
At quarter-end, the Exchange held a cash position of RUB 188 billion and remained debt-free, despite capital expenditure of RUB 4.1 billion on software and hardware upgrades.
Bonds Shine, Retail Engagement Grows
The Equities Market closed the quarter with a market capitalization of RUB 52.1 trillion. Trading fees rose 16.8% as volumes climbed nearly 20%. Retail investors remained highly engaged, with over 3.6 million individuals trading monthly during the quarter.
The Bond Market was a standout, with fee income surging 77.7% year-on-year. Trading volumes jumped 64.1%, fueled by both primary and secondary activity. Government OFZ bonds saw volumes soar 85.5%, while corporate bond activity also strengthened.
The Money Market posted fee growth of 20.8%, supported by strong CCP repo activity and the accumulation of Russian-law money market ETFs. Derivatives revenues expanded 21.7%, driven by a 202% surge in index contracts and steady growth in single-stock and FX derivatives.
Depository and settlement services declined 6.7% as custody balances dipped slightly, while information sales fell nearly 49%. In contrast, listing revenues gained 44% and fintech platform Finuslugi revenues more than doubled, highlighting demand for innovative financial services.
Expanding Products and Services
Q2 saw the launch of 10 new Russian-law ETFs covering bonds, equities, money market instruments, and precious metals. MOEX also introduced seven new derivative contracts and continued to expand its pre-IPO platform, MOEX Start, where IT firm Digital Habits raised RUB 900 million.
OZON Pharmaceuticals completed a RUB 2.8 billion secondary offering, while the BookBuilder digital platform facilitated over 80% of corporate bond placements. MOEX also unveiled 14 new indices, including the MOEXBTC crypto-asset index and the ICLIMATE index tracking environmental impact.
After the reporting period, the Exchange accelerated its innovation drive, introducing weekend ETF trading, new futures contracts, and the Value Building Index (MVBI). By July, retail brokerage accounts had climbed to 37.8 million, reinforcing MOEX’s position as a key gateway for domestic investors.
Rising Costs Reflect IT Investments
While operating costs declined overall, underlying trends highlight MOEX’s investment cycle. IT maintenance expenses rose 55%, and depreciation surged 45% due to software and hardware renewal programs. Marketing expenses jumped 40% to expand Finuslugi’s user base, while taxes linked to VAT on technology and consulting also increased.
Building for Long-Term Growth
Moscow Exchange’s second-quarter performance underscores its ability to balance short-term profitability with long-term investment. Robust fee growth across equities, bonds, and derivatives, combined with rising retail participation, strengthened the Exchange’s financial position.
By expanding its ETF lineup, digital platforms, and index family, MOEX is positioning itself not only as Russia’s leading marketplace but also as a hub of financial innovation. With a strong balance sheet, no debt, and continued client engagement, the Exchange appears well-placed to navigate global uncertainties while building for future growth.