RUSSIA: SPB Exchange Allows Leveraged and Inverse ETFs to Trade

Thursday April 20 2023

On 19^th April 2023, Public Joint Stock Company St. Petersburg Exchange (PJSC SPB Exchange) announced that it will provide access to trading in securities of leveraged and reverse ETFs (exchange traded fund) with a primary listing in the United States for the first time.

The new instruments will expand investors’ ability to diversify portfolios and access global liquidity of the international ETF market. Reverse and shoulder ETFs have not been presented on the Russian stock market.

Leveraged (margin) ETFs are index exchange-traded funds that use financial leverage (leverage) or derivatives to achieve higher returns compared to the underlying asset (benchmark).

Inverse ETFs are index exchange-traded funds whose market value changes inversely to the price of their underlying asset or benchmark. Such funds allow investors to earn during periods of falling stock prices.

Trades will be conducted in US dollars, in accordance with the trading calendar of the sites of their initial listing. ETFs will be settled on the second settlement day from the date of the transaction (T+2). The minimum lot is one security. Trading in securities of 10 new ETFs will be held from 14:30 Moscow time to 23:00 Moscow time in the Main Trading Mode.

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