NYSE-listed MSCI Inc has reclassified the MSCI Russia Indexes to standalone markets status, from its previous emerging markets status.
The reclassification will be implemented across all MSCI Indexes, including standard, custom and derived indexes, at a price that is effectively zero and as of the close of March 9.
The move comes after MSCI’s consultation with international institutional investors on Feb 28, on the accessibility and investability of the Russian equity market.
According to MSCI, a large number of participants around the world confirmed that the Russian equity market is currently uninvestable and that Russian securities should be removed from the MSCI Emerging Markets Indexes.
The current accessibility of the Russian equity market due to the ongoing developments does not meet MSCI’s market accessibility requirements for its emerging markets classification.
“To assist investors in their planning for the implementation of the reclassification decision, MSCI already calculates more than 100 global and regional indexes that exclude Russia, for example, MSCI Emerging Markets ex Russia, MSCI ACWI ex Russia, MSCI EM EMEA ex Russia, MSCI EM Eastern Europe ex Russia, etc,” reads the statement sent out on March 3.
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“MSCI will continue to monitor market developments and may issue additional guidance or announce further changes relevant to specific indexes, if necessary,” it adds.
Photo: Bloomberg
