Russia's central bank bans short selling as stocks plunge
Officials earlier had suspended trading on Moscow’s exchange before reopening it
Russia’s central bank said Thursday that it ordered brokers to stop allowing traders to, place bets against Russian shares, a practice known as short-selling.
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Short sellers borrow stocks they believe are overvalued and immediately sell them, hoping to repurchase the shares for a lower price when they need to be returned and to pocket the difference. The MOEX, Russia’s benchmark stock index, crashed 45% Thursday.
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Officials earlier had suspended trading on Moscow’s exchange before reopening it at 10 a.m. local time.
Russian President Vladimir Putin listens to a journalist's question during a joint news conference with Hungary's Prime Minister Viktor Orban following their talks in the Kremlin in Moscow, Russia, Tuesday, Feb. 1, 2022. (Yuri Kochetkov/Pool Photo via AP / AP Newsroom)