"Starting Dec. 15, the three brokers' access to trading on the stock exchange has been suspended due to complaints from other trading participants that these players have not fulfilled their obligations on repo transactions," MICEX chief executive Alexei Rybnikov said through his press secretary.
"The reinstatement of their access to trading is possible after receipt by the exchange of confirmation that all parties have satisfied their obligations," he said.
Repurchase agreements are used to secure short-term funding by selling securities with an obligation to buy them back, generally the next day.
| ||||||||||||||||||||||||||||||||||||||||
The amount of unpaid obligations reported by MICEX has fallen significantly since September, when traders had as much as 29 billion rubles ($1.1 billion) in unmet obligations, causing concern among investors and a plunge in companies' market values.
Calls to UTrade and Antanta-Capital went unanswered Monday. Melon's web site did not list a phone number for the brokerage, and an after-hours call to the company's asset management division in Orenburg was not answered.
Capitalist, a broker that works on the repo market, said in a statement dated Sept. 30 that Antanta-Capital failed to fulfill obligations to Capitalist on repo transactions worth 317 million rubles. The company said it has repeatedly tried to reach an agreement with Antanta-Capital's management on repayment.
One of MICEX's charter documents allows for disciplinary action against players who show "unprincipled behavior" or break the exchange's operating rules, including trading suspensions.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.