RUSL suspended by Direxion

Discussion in 'ETFs' started by nitrene, Feb 25, 2022.

  1. nitrene

    nitrene

    Final day of trading on RUSL is March 11. I got this from my Direxion e-mail:

    Direxion to Cease Trading of RUSL

    Due the restrictions on Russian securities and sanctions that have been imposed on Russia by the United States and other countries in response to Russia’s invasion of Ukraine, Shares of Direxion Daily Russia Bull 2X Shares will cease trading on the NYSE Arca, Inc. (“NYSE”) as of the close of regular trading on the NYSE on March 11, 2022 (the “Closing Date”).
     
    #11     Mar 1, 2022
  2. RedSun

    RedSun

    But here the question is that, how can they liquidate their portfolio since it can't be priced?

    If they own 10,000 shares of XYZ and XYZ is not trading, there is no way for them to determines its value.

    It appears they are going to liquidate the holding. Probably a fire sale to any reasonable buyer(s). This is not good.
     
    Last edited: Mar 1, 2022
    #12     Mar 1, 2022
  3. nitrene

    nitrene

    My guess is it will just move from the NYSE to the OTCBB. There can't be a liquidation without the MOEX reopening but who knows when it will reopen if ever. I think some of the ADRs trade on the FTSE as well so maybe some buyers from there.

    I still own some June 2022 RSX calls in case Putin backs down, but I doubt it given the caravan that's coming.
     
    #13     Mar 1, 2022
  4. RedSun

    RedSun

    If you read the info. This will be liquidated and proceeds returned to final shareholders. Ceased to exist since they won't make any money any longer. Fun permanently closed.
     
    #14     Mar 1, 2022
  5. newwurldmn

    newwurldmn

    They own RSX, which is trading.
    RSX owns adrs and gdrs in London of Russian stocks. These all trade but as the local shares don’t trade, no one knows what they should be trading at.
     
    #15     Mar 1, 2022
    MoreLeverage likes this.