What to know in light of Russia’s attack on Ukraine

In response to Russia’s attack on Ukraine, the U.S. and other countries have introduced sanctions to disconnect Russia from global economic access, including restricting access to capital. (More information from the U.S. Department of the Treasury here.) As a result of these sanctions, exchanges and other market participants are taking actions that could prevent Robinhood customers from buying or selling Russian-based securities.

While Robinhood doesn’t allow trading on foreign exchanges, Robinhood customers can buy and sell a limited number of Exchange Traded Funds (ETFs) that invest in Russian companies and American Depositary Receipts (ADRs) that represent shares of a Russian company's stock. Here’s what you should know.

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Trading halted for Russian securities on U.S. exchanges

On February 28, 2022, major US stock exchanges NYSE and NASDAQ halted trading of Russian companies listed on their respective exchanges. That means people are unable to buy and sell those companies through any US-based broker dealer, including Robinhood (learn more about trading halts here). You can review current trading halts for the NYSE here and for NASDAQ here.

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Orders will stop being accepted in OTC securities for Russian companies

Other securities for Russian companies that trade over-the-counter (OTC)—meaning they are not traded on the exchanges—are also being monitored closely by the OTC Markets Group. Our execution venues informed us that as of the market close March 1, 2022, they will no longer accept orders in these OTC securities. That means customers won't be able to buy or sell those securities until further notice.

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Volatility in ETFs that invest in Russian securities

There are a few ETFs traded on U.S. exchanges that solely invest in Russian securities. While these continue to trade as of February 28, 2022, the securities held within these funds are impacted by the same events, and may be volatile.

Given that geopolitical events are rapidly evolving and unpredictable, volatility in these securities is likely to continue, and other disruptions are possible. We’ll continue to monitor the situation and provide information as appropriate.

Note

All investments involve risks, including the loss of principal. Investors should consider their investment objectives and risks carefully before investing.

Securities trading offered through Robinhood Financial LLC, a registered broker-dealer and Member SIPC. Robinhood Securities, LLC (member SIPC), is a registered broker dealer and provides brokerage clearing services.

Reference No. 2060492
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