The Moscow Stock Exchange has been closed since February 25th after Russia invaded Ukraine, and sanctions imposed by western economies sent markets into free fall. Late last Friday, Euronext, Borsa Italiana, Deutsche Boerse, and the London Stock Exchange suspended trading on several Russia-related exchanges traded funds (ETFs). There are currently 10 Russia-focused and emerging market funds with €4.2bn assets under management that has suspended redemptions. Russia's exchange-traded funds (ETFs) trade on the secondary market where market makers match buyers and sellers. This means they act as a source of price discovery for the underlying market when the Moscow Stock Exchange is closed. In addition, the secondary market trading of ETFs means there is a lower risk of a dynamic that incentivizes the fire sales of their underlying assets.

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