With no signs of the Russia-Ukraine conflict de-escalating, Russian institutions and businesses are facing more and more economic exclusion. The Federation of European Securities Exchanges (FESE) has become the latest to exclude the Moscow Exchange from its association.
“The Federation of European Securities Exchanges (FESE) utterly condemns the Russian-led invasion of Ukraine. Our thoughts and unwavering support go out to the Ukrainian people,” the industry association wrote in its latest announcement.
“In light of the Russian government’s actions, the FESE Board has recommended that the General Assembly vote to exclude the Moscow Exchange from the association, stripping it of FESE observer member status.”
The FESE is an industry association that represents operators of European exchanges and other market segments, including stock exchanges, financial derivatives, energy and commodity exchanges.
The association has 18 full members and is representing 36 exchanges from 30 different countries in the European Union, Iceland, Norway, Switzerland and the United Kingdom.
The decision of FESE came after some of its members like Deutsche Boerse were already suspending trading and settlement of Russian securities. Moreover, the European Association of CCP Clearing Houses suspended the EACH Russian Member CCP NCC.
Now, the European Central Securities Depository Association will vote on the termination of its Russian members on March 9.
Sanctions
After Russia invaded Ukraine last week, the Russian stock market saw a sharp decline. The Russian central bank first limited trading on the Moscow Exchange on Monday, only to shut it completely throughout the week. It has been the longest closure of the stock exchange since 1998, according to Bloomberg.
“It’s really the end of the Russian financial market we are used to,” Leonardo Pellandini, a strategist at Bank Julius Baer, said. “It just seems like it is becoming an uninvestable market, at least for foreigners. There are too many uncertainties.”
Meanwhile, western governments continue to slap economic sanctions on Russia. They froze the assets of several Russian politicians, officials and oligarchs, and sanctioned financial institutions and companies. In the latest, the European Union excluded seven Russian banks from SWIFT, thus cutting them from the international payments messaging system.
