So far, only investors from countries will be able to sell shares, which Russia considers friendly
Who will be allowed to bid and under what conditions
Clients from countries will be able to make transactions, which were not included in the list of unfriendly states. Власти РФ утвердили такой перечень в марте 2022 года — в него попали страны, who imposed or supported sanctions against Russia: USA, EU countries, Japan, Australia and others. Investors from these countries are still unable to trade on the exchange.
Non-residents from other countries will have the same access to the stock and derivatives markets, like the residents. But they will be subject to additional control.. Professional market participants - banks, brokers and management companies are required to identify non-resident clients and persons, who control them.
There is an algorithm, by which professional participants check clients, and then transfer the information to the Moscow Exchange. The organization will add a new field to it, which, together with the customer's country code, defines, can a non-resident make transactions or not.
By default, all clients will receive an indeterminate status.. For customers from Russia and Belarus, this will not change anything: they will be able to trade as before, explained Mosbirzha in the FAQ for professional participants. For a non-resident to gain access to trading, his bank, broker or manager must set the appropriate value. Information is updated on the next trading day.
If the status of the client changes over time, then the professional participant will have to update the information - for example, if the "unfriendly" non-resident goes into the category of "friendly", and vice versa, written in the FAQ of the Moscow Exchange.
When will trading open for all non-residents
The Central Bank plans to open trading for all foreign investors, but on special terms. For non-residents from countries, recognized as unfriendly, as well as for "friendly" non-residents, controlled by "unfriendly", launch a separate market, indicated in the presentation of the Moscow Exchange. But the organization has not yet disclosed the start date of the auction..
From the materials of the trading platform follows, that “unfriendly” non-residents will not be able to conduct transactions with residents on the stock and derivatives markets - only among themselves.
The first reaction of the market
What is the share of non-residents in Russian shares, it is not known exactly. According to RBC, all non-residents keep about 80% Papers, which are in free circulation. How many accounts for "friendly", hard to say, but BCS Express indicates, that the majority of non-residents in Russian public companies are US investors, UK and EU countries, for which trading remains blocked.
Therefore it is difficult to predict, How will the market behave after 8 august. There is a risk: not to fall under secondary sanctions, "friendly" non-residents will sell shares and they may fall. But the market does not lay such a scenario yet.. According to data on 12:35, Moscow exchange index grew by 0,3%, to 2199 points.
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