VTB Capital Forex, one of four licensed Russian forex brokers, has announced the suspension of all trading activities.
Although Western governments imposed sanctions on many Russian financial institutions after the Russian invasion of Ukraine, the forex broker particularly highlighted the sanctions against VTB Bank, a rate provider.
It has already prevented traders from opening any new positions and allows traders to close existing trades. The broker will forcibly close all open positions at the end of Friday.
“The company will close the deals of those clients who have not closed them by 23:59:59 Moscow time on February 25, 2022, forcibly at the price of the last indicative quote for the trading day on February 25, 2022. Please note that all pending orders will be canceled in the specified period,” she stated. VTB Capital Forex in its press release (translated from Russian).
The company is currently working with VTB Bank (PJSC) to develop a procedure to eliminate or minimize the negative consequences of anti-Russian sanctions measures. The company will resume trading operations in the near future.”
However, the broker clarified that all non-commercial orders, including deposits and withdrawals, will be processed as normal.
The broker's comment came a day after VTB Group asked its corporate clients to refrain from executing transactions in US dollars and euros. This, in their opinion, would "reduce risks in light of the current situation".
The Russian invasion of Ukraine on Thursday began chaos in the financial market: the Russian stock exchange fell, global stock indices fell, and crude oil prices broke the $100 mark. However, the sentiment of traders calmed down on Friday as all the markets witnessed a significant recovery.
Although the current sanctions are mostly limited to financial institutions that aim to break the country's economic backbone, there are also possibilities for tougher and more personal sanctions against Putin.