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Disconnection from SWIFT: what to expect for traders and investors.

The threat of Russia being cut off from SWIFT has been talked about for a long time, but many were sure that this would not happen. But this day has come and many traders and investors are in a state of panic. They do not understand how the disconnection from SWIFT will affect exchange trading and whether it will be possible to “take away” their funds. First you need to understand what SWIFT is.

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What is SWIFT?

This is a global network that allows international transfers. Thanks to it, banks send funds transfer orders, and customers can receive money all over the world. In a word, this system opens a window to the financial world and makes it possible to simplify foreign exchange payments. Not only banks, but also exchanges and brokers are connected to this system, so the news about the SWIFT shutdown caused excitement among traders and investors.

Banks have already been sanctioned – VTB, Otkritie, Sberbank, Gazprombank, Alfa-Bank, MKB. This measure could cause serious damage to the economy, as it will restrict the flow of money into the country.

But it should be understood that there is also an analogue of SWIFT. In Russia it is called SPFS. It is used in 23 countries, so even if you disconnect from SWIFT, there will be no chaos in the country.

What should traders expect?

Complete disconnection from the system will not affect trading and investing. Yes, foreign investors are leaving the market and will continue to leave, volatility will increase, as will the inevitable fall in the value of securities. But as for trading on the stock exchange, they will soon work as usual. These are the forecasts of experts.

What restrictions do sanctioned brokers already have in place today?

The most serious restrictions affected VTB, Otkritie. They ended up on the SDN list. This means that there is a blocking of assets in American jurisdiction, the impossibility of conducting dollar transactions. Not so serious sanctions were imposed on Sberbank: restrictions apply only to correspondent accounts. Other Russian banks cannot attract US funding. At the same time, it should be noted that the shares of VTB and Sberbank went up.

Sberbank works as before, but VTB has published recommendations and answers to frequently asked questions from users:

 

  • Acquisition of foreign securities is impossible, sale – yes.

  • Shares are not available for margin trading.

  • The purchase of currency is not available (temporarily), and the sale is carried out without restrictions.

  • Withdrawal of currency is possible only to an account in VTB.

  • Trades in Russian assets are conducted without restrictions.

There is information that shares of Russian companies registered abroad cannot be purchased. While this is unconfirmed information, but such reviews already exist.

How is the withdrawal of funds from the broker after disabling SWIFT?

You can withdraw money only in national currency, in dollars, euros – only to a bank account.

Operations are performed with a delay, so this factor should be taken into account. In addition, new tariffs for the withdrawal of foreign currency (up to $10,000) have been introduced. If the amount is higher, then the rest is displayed in rubles.

What should I do if I can’t withdraw funds?

You can file a complaint on our website or contact the regulator.