Trading in ruble-denominated cocoa futures contracts on the derivatives market of the Moscow Exchange will begin on September 24, according to a press release.
The underlying value of the futures is the price of cocoa beans in foreign markets. The contracts reflect the price of cocoa beans delivered from Africa, Asia, Central and South America to one of five U.S. delivery ports, the document explains.
Investors can use the futures contracts to expand the possibilities of investment strategies—hedging risks and profiting from price fluctuations. For market participants whose activities are related to cocoa production and processing, futures can better protect their income from undesirable changes in cocoa bean prices, the exchange says.
"We see a significant interest of market participants in the segment of commodity instruments, which, on the one hand, is connected with the growth of prices for raw materials and increased volatility in the markets, and on the other hand, with a steady need for diversification of investments," Maria Patrikeeva, Managing Director of the Derivatives Market noted.