The Mexican Stock Exchange (BMV) suspended the titles of Russian companies listed in the International Quotation System (SIC), a platform where Mexican investors can invest from Mexico in stocks and Exchange Traded Funds (ETFs) foreign.
The BMV determined the suspension of the ETFs Direxion Daily Russia Bull 2X Shares (RUSL) and iShares MSCI Russia (ERUS), in response to the same measure previously announced by the New York Stock Exchange (NYSE), in the face of the sanctions that The United States imposed on Russia for his invasion of Ukraine.
“Because the NYSE suspended various Russian companies as a result of the sanctions imposed by Washington in response to the invasion of Ukraine, this Stock Exchange has determined this March 4, 2022 to suspend the listing on the SIC of foreign securities RUSL and ERUS. ”, announced the BMV it’s a statement.
In it, he added that this determination is intended to “avoid disorderly conditions in the market” and based on the provisions applicable to the International Quotation System issued by the National Banking and Securities Commission (CNBV).
March 3 NYSE ARK reported that the actions of Direxion Daily Russia Bull 2X they will have a 0% market exposure and will keep all their assets in cash, until the settlement date, which will be the 18th of this month.
“Due to increased market volatility and restrictions on Russian securities resulting from the sanctions and other measures imposed on Russia by the United States and the European Union in response to the Russian invasion of Ukraine, Direxion Daily Russia Bull 2X shares are experiencing significant and unprecedented premiums that may result in losses if the premium declines,” the New York Stock Exchange said in a notice.
The RUSL ETF offers triple exposure to Russian equities, being index-leveraged DAXglobal Russiawhich represents almost 80% of the Russian economy and among the basket of issuers has Gazpromthe largest gas company in the country; Novatekthe largest independent Russian producer of natural gas and the largest oil company, LUKoil.
This year the ETFs It has plummeted 90.50%, to $2.58 according to its close on Friday, March 4. In the last eight business days, since the announcement of the Russian military action in Ukrainehas lost 83.80% on the NYSE ARCA.
For its part, the ETF ERUSwhich follows Russian stocks, registers a strong annual drop of 81.20% and from February 23 to last Friday it is down almost 86%, on the NYSE.
Specialists have explained that the market has serious concerns about the economic future of Russia, which has been reflected in large liquidations in securities on the Stock Exchange. This after the United States and the European Union have imposed severe economic and financial sanctions against the government of President Vladimir Putin after the invasion of Ukraine.
For their part, global providers S&P Dow Jones Indices, MSCI, FTSE Russell reported that they would remove Russian stocks from their main indices.
S&P explained that this exclusion of all shares listed or domiciled in Russiawill start applying before the opening on March 9 and the decision is due to the “deterioration and accessibility of the Russian market”.
“Given the deterioration in the level of accessibility of the Russian market that may affect the ability of market participants to replicate S&P DJI indices containing Russian securities, S&P DJI will reclassify Russia,” it said in a notice.
As well FTSE Russell will remove Russian equity indices at the open on March 7. He said he will include them as “an unclassified market”.
MSCI announced that it will reclassify the Russian market from “emerging to independent” (this will be at market close on March 9).
“The Russian stock market is currently not investable,” MSCI said in a statement.
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