This document summarizes a study of the relationship between bid-ask spreads in the retail foreign currency exchange market in Moscow and spreads in the interbank FOREX market. The study found: 1) Retail spreads significantly correlate with and are indirectly impacted by volatility and trading results in the interbank MICEX market. 2) Retail spreads are more elastic during periods of low volatility and less elastic during high volatility. 3) There is intraday but not interday hysteresis in retail spreads. Spreads are highest in the morning and decline through the afternoon. 4) Estimates support the Kyle-Obizhaeva two-factor model, with positive correlations between retail spreads and interbank market