The trading platform took an unprecedented action without warning its customers!
Cleints voiced their anger and frustration on eToro’s decision to force liquidate the first of possibly multiple Russian equities offered on its platform.
eToro is a large brokerage firm with regulated operations in Europe, the United States, and a research center in Ukraine.
- It has 25 million users, 2.1 million funded accounts, and $10.6 billion of client assets under administration.Clients were informed that eToro will no longer list Magnit PJSC, the stock of a large food retail chain in Russia, in its platform citing “severe” liquidity concerns. eToro is deciding whether it will follow suit with nine other Russian such investments. Forbes finds
*Bloomberg Tweet on Etoro
Retail traders are in shock after EToro liquidated their positions in Russian supermarket operator Magnit at a price of about 1 cent https://t.co/YGTpWvhAvj
— Bloomberg (@business) March 5, 2022
Decision was taken following the wide sanctions placed on the Russian economy,
and major divestment out of Russian securities from companies and investors such as the Norwegian sovereign wealth fund and BP and growing fears of dramatic losses in value.
Russian authorities have decided to keep the Moscow Stock Exchange (Moex) closed for the past week making it difficult for the offshore securities of Russian-based stocks, such as those offered by eToro, to be priced accurately.
*London Stock Exchange (LSE) announced the suspension of fifty Russia-based companies and their shares and/or depository receipts – including Magnit, Etalon Group, and Sistema – in the London exchange citing “Russia’s unprovoked invasion of Ukraine