Securities Finance Industry News | Russian central bank limits short selling
The Bank of Russia imposed a ban on short selling which came into effect at 11:00 a.m. Moscow time (9:00 a.m. CET) on Thursday, February 24.
This ban is indefinite and will continue until further instructions are received from the central bank.
In a statement, the Bank of Russia said: “In view of the current situation in the financial market and in order to protect the rights and legitimate interests of investors in the financial markets, to mitigate risks and to limit excessive volatility, the Bank of Russia ordered brokers to suspend short-term trading on the exchange until said instruction is rescinded.
The stocks that make up the MOEX index have been subject to high volatility over the past two days, with the index losing 44% of its value as it slid to its low point during Thursday’s trading.
Trading Economics notes that the MOEX Russia index climbed more than 20% in early trading on Friday, partially recovering from a 33% drop in the previous session.
Traders continue to watch the crisis in Ukraine and the potential impact of sanctions on Russia following its military involvement. The sanctions have yet to significantly target Russian oil and gas exports and have not suspended Russia’s access to the SWIFT payment network.