Russia’s central bank again suspended trading on the country’s leading Moscow Stock Exchange (MOEX) on Wednesday, with the exchange not reopening on Thursday, according to local news agency TASS. Trading with the Moscow Exchange has been suspended since February 25, after Russia launched an ongoing military campaign in Ukraine. On a monthly basis, the stock index lost more than 34% of its value (excluding inflation) as Western leaders imposed tough sanctions on Russia in response to the conflict.
In addition, the main website of the Moscow Exchange has been down since Monday, and the Ukrainian “IT Army” is said to have claimed responsibility for the “hack”. Meanwhile, the Russian stock exchange in St. Petersburg is still closed, but will reopen on Thursday for limited trading. Meanwhile, the Dow Jones Russia GDR index, which tracks the value of Russian stocks listed on the London Stock Exchange, has lost 93% of its value in the last five trading days, indicating huge losses expected after the opening of Russian markets.
Theoretically, a cryptocurrency exchange, whether centralized or decentralized, is immune to this disruption. In addition to being large in number, centralized exchange servers may be scattered around the world, or may not reveal the location of their servers. Therefore, governments can ban stock exchanges within their borders, but cannot impose a ban on cryptocurrency trading. For decentralized exchanges, their peer-to-peer nature usually allows anyone with an internet connection to connect to their wallet and exchange cryptocurrencies, making it difficult to enforce any kind of ban altogether.
While Russian financial institutions have the means to deal with a stock market crash, the same cannot be said for ordinary Russians. More than 17 million retail investors trade on the Moscow Exchange alone, and retail investors account for more than 40% of the country’s stock trading volume. In addition to the sharp weakening of the ruble, it is likely that the community of private investors in Russia, such as pensioners and pensioners, will suffer a huge loss in their savings when the markets open.
But there is perhaps no better way to understand the dangers of centralized control of the capital markets than through the archives of the SPO itself. During the imperial period, the SPB was one of the best stock markets in the world, even surpassing the New York Stock Exchange for most of the second half of the nineteenth century. However, trade on the SPB ceased with the outbreak of World War I and was reopened shortly after the start of the Russian Revolution in 1917. But when the Bolsheviks came to power, SPB was closed forever, and the investors were unable to sell in time to lose all their money. .