Russia’s largest futures market, the Moscow Exchange (MOEX), has extended its trading suspension period by another week. Traders are still unable to access their accounts since it was suspended on January 10th 2018. The exchange is expected to resume trading around February 9th before further announcements become available.,
For the third week in a row, the Central Bank of Russia has stated that stocks trading on the Moscow Exchange would be suspended. The exchange’s trading was halted on February 25, only 24 hours after Russia invaded Ukraine. Since then, the Western government has put a series of restrictions on the country’s economy.
Trading on the Moscow Exchange will be banned from March 14 to March 18, according to the central bank. Negotiated buyback deals with ruble settlements, on the other hand, will continue. Activities in the Standardized OTC Derivatives Market will also continue, according to the central bank. In addition, negotiated position-closing transactions will be possible using index contracts in the derivatives market. The Russian stock market had already fallen before the invasion, but had rebounded significantly before trade was halted.
The purpose of the extension is to safeguard the Russian stock market.
The central bank made the decision to shield the Russian stock market from the economic upheaval brought on by the escalating economic sanctions. The trade halt happened a day after the penalties were announced, so it was well timed.
The Russian central bank has chosen to preserve the stock market by keeping trading activity on the exchange suspended as long as the conflict and harsh sanctions continue. It’s unclear if trade will restart next week or whether the moratorium will be prolonged. However, if the battle continues, the suspension will very certainly be maintained.
Other Markets Are Available
While trading on the Moscow Stock Exchange is halted, other markets, such as the FX and commodities markets, continue to operate and trade during normal business hours. The central bank said that trading sessions on the Moscow Exchange’s repo, money, and FX markets would begin at 10:00 a.m. Moscow time. However, the stock market remains suspended for the time being, with no timetable set for its return.
