As the headlines came in fast and furiously, we’ve compiled a list of the most relevant announcements by index providers across all asset classes. Investors in ETF products may also be interested in our recent blog What the removal of Russian stocks from major indices means for ETFs.
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MSCI – Equity indices
On March 2, MSCI announced that Russian equities would move from emerging market status to standalone market status. The reclassification decision will be implemented in one step for all MSCI indices from the March 9 close.
FTSE – Equity indices
On March 2, FTSE Russell announced that, in accordance with the “When customers are unable to trade a market” rule, Russia would be removed from all FTSE Russell stock indices from the open on March 7.
S&P DJI – Equity indices
On March 4, S&P DJI announced that it would remove all stocks listed and/or domiciled in Russia (including ADR/GDR) from its standard equity indices at a price of zero, effective before the March 9 open. . Additionally, S&P DJI will reclassify Russia from an emerging market to “standalone” effective the March 9 open.
Bloomberg – Equity indices
On March 4, Bloomberg announced that all current index members with a country classification of Russia will be removed at a market price of zero from all equity indices at the close of March 9, to reflect the fact that these companies are no longer negotiable, by indexation rules.
Fixed Income and Currencies
JP Morgan – Bond Indices
On March 7, JP Morgan announced that Russian issuers will be excluded from all bond indices on March 31 due to “market disruptions and subsequent impact on index replicability”. This includes the EMBI Index, CEMBI Index, GBI-EM, ELMI+ Index and all their sub-indices.
Bloomberg – Bond Indices
On March 4, Bloomberg announced that securities with country risk for Russia will be removed from all bond indices, including high yield and emerging market indices, at near-zero valuation on March 31.
S&P DJI – Bond Indices
On March 9, S&P DJI announced that it was beginning a consultation with market participants on the potential removal of Russian stocks from the S&P DJI bond indices. The consultation could result in the removal of some or all Russian bonds, a restriction on the addition of newly issued securities, or a freezing of the index weighting for Russian securities for the duration of the sanctions. The results of the consultation will be announced on March 15.
FTSE – Bond indices
On March 4, FTSE announced that following the sanctions imposed on Russian issuers, there is a “near total absence of price discovery” for Russian fixed income securities and therefore constitutes a market disruption event. Accordingly, all Russian ruble and non-ruble sovereign bonds as well as bonds of Russian-domiciled issuers in hard currencies will be excluded from the FTSE bond indices. The bond price was set at zero on March 7 and will be removed from the indices on March 31.
Read the original blog Unplugged Russia March 10, 2022.
Main contributor: Alejo Czerwonko
This content is a product of the Chief Investment Office of UBS.
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