Moscow Exchange has announced the introduction of a new financial instrument to enhance market stability. Starting March 12, 2025, the Moscow Stock Exchange will calculate and release the Moscow All-Weather Exchange Index. This index is a unique benchmark designed to withstand fluctuations in various market conditions by diversifying assets across different classes.

Unlike traditional indices, the all-weather index is structured to maintain stability regardless of market volatility. It comprises four main asset classes: stocks, bonds, cash, and gold. By incorporating these diverse components, the index aims to provide a comprehensive overview of the financial market’s performance.

The calculation of the all-weather index will involve six stock indexes weighted according to specific proportions. The Moscow Exchange’s total return index MCFTR will contribute 30%, while the corporate Russian Eurobonds index RUCEU will hold a 25% weight. Additionally, the corporate bonds index RUCBTRNS, government bonds index RGBITR, accumulated profitability index RUSFAR RUSFARIND, and refined gold index RUGOLD will each play a role in determining the index’s value.

This initiative marks a significant step for the Moscow Exchange in offering investors a reliable tool to assess market stability and make informed decisions. By introducing the all-weather index, the exchange aims to enhance transparency and provide a more holistic view of the financial landscape.

In a rapidly evolving economic environment, where uncertainties can impact investment decisions, the introduction of the all-weather index underscores Moscow Exchange’s commitment to promoting stability and resilience in the financial markets. This development aligns with global trends towards creating innovative financial instruments that can adapt to changing market dynamics.

The launch of the Moscow All-Weather Exchange Index represents a strategic move by the exchange to cater to the evolving needs of investors and market participants. By introducing a diversified benchmark that reflects the performance of key asset classes, Moscow Exchange aims to bolster confidence and facilitate more informed investment strategies.

In conclusion, the introduction of the all-weather index by the Moscow Exchange signifies a proactive approach towards enhancing market stability and providing investors with a comprehensive tool for navigating the complexities of the financial landscape. This initiative is poised to set a new standard in benchmarking practices and contribute to the overall resilience of the financial markets.