SBP Exchange plans to launch trading of blocked foreign shares
MOSCOW. June 27 (Interfax) - The SPB Exchange Market Development Committee has backed the decision to launch trading of blocked foreign securities, CEO Evgeny Serdyukov said.
"Brokers and their investor clients will have the opportunity to sign deals on foreign securities which temporarily cannot be traded due to sanctions against SPB Exchange. These trading sessions will only use SPB Exchange's Russian liquidity pool. The net position of SPB Bank in the superior depository in terms of foreign securities is not going to change. That means that all transactions will stay inside the bank," Serdyukov said at the exchange's annual shareholders meeting.
Trading of blocked securities is planned to take place during the main session, from 10:00 a.m. to 7:00 p.m. Moscow time. All deals and transactions will be denominated in rubles.
"We are continuing to consult with traders on which mechanisms can be used to launch the trading," Serdyukov said.
He also reported that lawyers from Delcredere had said that these trading sessions did not violate U.S. sanctions regulations and would not put participants at risk of being sanctioned, as SPB Exchange and SPB Bank are not going to charge any money for their services.
Serdyukov said that investors who acquire blocked securities would still be temporarily barred from enjoying certain rights. "For example, they will not be able to receive income from investment, dividends, or sign any deals involving foreign securities outside of Russia due to their status as 'blocked', unless they obtain an OFAC license," Serdyukov said.
Under the plans, the first stage will allow investors access to shares which have a primary listing in the U.S. and do not have the National Settlement Depository (NSD) as part of their chain of custody.
The U.S. Department of the Treasury's Office of Foreign Assets Control added SPB Exchange to its sanctions list in November 2023. After that, it paused trading of foreign securities, and investors had their assets blocked. As the exchange explained, foreign partners, including those from friendly jurisdictions, have stopped using the trading platform due to fear of punishment for violating the U.S. sanctions regime, including secondary sanctions.
