S&P Dow Jones contacts fund groups over Russian sanctions impact

S&P Dow Jones Indices has launched a consultation into the impact Russian sanctions will have on its indices and whether securities caught up in the sanctions should be removed or not.

The consultation is being issued to fund groups with a vested interest in S&P Dow Jones Indices either passively or actively through tracking or benchmarking.

The S&P Dow Jones move comes as the US Treasury has announced another raft of sanctions on select Russian securities and individuals in response to the current Ukrainian crisis.

Launched on 31 July and due to close on 15 August, the consultation will look at which S&P Dow Jones indices hold only Russian securities and whether or not sanctioned securities should be removed as a result.

In particular the consultation is aiming to ascertain how big a notice period should be given in this eventuality and how sanctioned securities should be treated if they appear on different sanction lists between the US and various European countries.

A note from S&P DWI reads: “While S&P Dow Jones Indices believes that its indices are not directly impacted by these actions, we do recognise that some licensees may be required to divest holdings of sanctioned companies.

“The goal of this client consultation is to provide S&P DJI with the information to assist it in making any appropriate and potential index modifications in a timely and efficient manner, and ensure that our indices continue to take into account changing market conditions, including in this specific circumstance, the recently announced sanctions and any impact they might have on our licensees and other market participants.”