CBR limits circulation of foreign shares blocked by international settlement and clearing organizations

MOSCOW. May 30 (Interfax) - The Central Bank of Russia (CBR) has decided beginning on May 30 to limit circulation in organized trading of foreign securities blocked by international settlement and clearing organizations, except for securities of foreign issuers carrying out production and economic activities mainly in Russia, according to a statement from the regulator.

The blocked foreign securities are now circulating on the SPB Exchange in small quantities, the CBR said. Since such assets are not marked in its trading and clearing system, they will be distributed among trading participants and their clients on equal terms taking into account proportionality and with possible exceptions to non-trading accounts of small client portfolios

Despite the measures imposed by the regulator, the ownership rights of owners of such foreign securities are preserved. Organized trades in them will resume in the previous mode as restrictions are lifted. The owners will then have the opportunity to dispose of the income received on securities, which is now difficult because of the actions of international depositories.

The Central Bank says that its decision is aimed at protecting the rights and interests of investors and minimizing their risks.