Legal Alert September 25, 2013
Involuntary Listing of Non-Russian Companies on Russian Stock Exchange We have become aware that the St. Petersburg Stock Exchange (the “SPBEX”) in Russia has recently contacted several public U.S. multinational companies informing them that the SPBEX will begin trading the company’s shares on the SPBEX at the request of a local broker in Russia. Once listed on the SPBEX, companies may be required to comply with certain rules and information disclosure requirements. To effect the listing without the company's consent, the SPBEX is relying on a general provision of Russian securities markets law that allows a Russian stock exchange to unilaterally permit trading of foreign securities that have a primary listing on an internationally recognized exchange, such as the NYSE or NASDAQ. The Russian Central Bank has issued draft rules that prohibit the trading of foreign securities on Russian exchanges without the consent of the company. However, these rules will not be effective until 10 days after the rules are published by the Russian Ministry of Justice and will likely not have retroactive effect. As it is not yet known when the Russian Ministry of Justice will publish the rules, in the event that your company receives such a letter from the SPBEX, please contact your GES attorney as soon as possible to determine the company's obligations and strategy in responding to the SPBEX.
For more information
Contact Information Kate Konieczny
If you wish to opt out of these communications, pleaseclick here