Amid heavy sanctions put by the US, the stock markets are weighing possible options and regulatory information to stop trading of Russia-based businesses.
As the US and NATO allies are trying to isolate Russia via economic sanctions, things take a new turn. On Monday, February 28, two major US stock exchanges – Nasdaq and NYSE – temporarily halted the trading for stocks on Russia-based listed companies.
Russian-based Companies Won’t Be Traded on the US Stock Markets
These halts also followed regulatory concerns with exchanges seeking more information following economic sanctions on Russia. Some of the stocks halted for trading on Nasdaq include Nexters Inc, HeadHunter Group PLC (HHR.O), Ozon Holdings PLC (OZON.O), Qiwi PLC (QIWI.O) and Yandex (YNDX.O).
As per the Nasdaq rulebook, trading halts for disclosure of material information happen to ensure that”material information is fairly and adequately disseminated to the investing public and the marketplace, and to provide investors with the opportunity to evaluate the information in making investment decisions”.
Similarly, the NYSE halted trading for the listed companies that include Cian PLC (CIAN.N), Mechel PAO and Mobile TeleSystems PAO. Intercontinental Exchange (ICE), the owner of NYSE said that it is not adding any new debt issuances from sanctioned Russia. Also, it added that the affected existing debt from Russian entities shall be removed by March 31.
OTC Market Group Awaits Regulatory Information
The OTC Markets Group is responsible for providing information to more than 12,000 over-the-counter securities. It said that it is currently seeking regulatory information relating to the sanctions on Russia as well as their impact on the trading of Russian American depository receipts. In a statement on Monday, the securities group said:
“OTC Markets Group is monitoring and working with Federal regulators and will act in accordance with their guidance and directives as information becomes available”.
On the other hand, an industry-owned organization – The Depository Trust and Clearing Corporation – said that it is also assessing the potential impact of the Russian sanctions on the financial system and the volatility that it brings along with it. Speaking to Reuters, a spokesperson of the Group said:
“We are closely watching the situation in Ukraine and are committed to protecting market stability and providing certainty to our clients and the broader industry”.
On Monday, authorities from Moscow and Kyiv held talks with no major conclusion coming to stop the war. On the other hand, Russian forces continue their advancements to Kyiv.
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
