Bank of Russia restricts exchange trading in foreign securities blocked by international depositories
The Bank of Russia has decided, starting from 30 May 2022, to restrict on-exchange trading in foreign securities blocked by international clearing and settlement organisations, except for securities of foreign issuers engaged in production and economic activities mostly in Russia. This decision is aimed at protecting the rights and interests of investors and minimising their risks.
Currently, a small share of the blocked foreign securities are traded on the PJSC SPB Exchange. As such assets are not marked in the trading and clearing system of the Exchange, they will be distributed among trading participants and their clients proportionately on equal terms and with a possible separation of small client portfolios and their transfer to non-trading accounts.
Despite the measures taken by the regulator, the holders retain their legal ownership of such foreign securities. On-exchange trading in these securities will resume in the previous mode, when the restrictions are lifted. Consequently, the security holders will have an opportunity to use their returns on these securities which is now hampered by actions of international depositories.