Retail Margin Calls Seen Behind Russian Blue-Chip Flash Crash – Bloomberg Law
By Jake Rudnitsky
A flash crash of some of Russia’s most valuable companies during early trading on the Moscow Exchange Tuesday was probably the result of margin calls on retail investors rather than the geopolitical fears that often drive the market.
Gazprom PJSC shares fell as much as 8.7%, Sberbank PJSC lost 7.5% and United Co. Rusal International PJSC was down 9.3% before 8 a.m. in Moscow before recovering during regular trading hours.
Margin calls on retail investors after the market closed down 3.8% on Monday were the likely culprit behind the unusual activity during the recently introduced morning session, according to …
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