Russian Central Bank Intervenes After Currency Crashes, Halts "Manipulated" Equity Futures Trading

The Russian Ruble has collapsed this morning. Despite a modest dead-cat-bounce-like rally in crude oil, the Ruble is down almost 3 handles smashing through the 61/USD level for the first time ever. Minutes after flash-crashing to 61.46/USD, officials, according to Reuters, halted trading in certain instruments to “prevent possible manipulation of equity futures market." Russia's 5Y CDS has broken above 500bps for the first time since 2009 (+21bps today), the RTS stock market is down over 6%, and 5Y bond yields are pushing towards 13%. It seems Putin is increasingly being put under pressure to do something...

 

  • RUSSIAN CENTRAL BANK SAYS ORDER TO MOSCOW EXCHANGE TO HALT TRADING IN CERTAIN INSTRUMENTS TO PREVENT MANIPULATION OF EQUITY FUTURES MARKET

The Central Bank of the Russian Federation (Bank of Russia) Press Service

On measures to prevent a possible market manipulation

 

In order to prevent possible manipulation during pricing expiry of futures contracts on the RTS Index RTS-12.14 equity markets included in the calculation base of the RTS Index as of 12.15.2014, the Bank of Russia sent an order to ZAO "MICEX" to suspend the trading of financial instruments near customers bidders whose actions in the equity markets have repeatedly directed action in times of determining the settlement price of the expiry of futures contracts on the RTS Index, ekspirirovavshihsya previously (2013-2014 gg.).

RTS is collapsing

 

The Ruble is crashing...

 

Then what apopeared to be intervention occurred...

 

Confirmed - BANK OF RUSSIA MAY HAVE SOLD $350M TO BOLSTER RUB: BCS' SAENZ

And default risk is spiking

 

Charts: Bloomberg