eToro Announced Forced Liquidation in Magnit Holdings, Petition Launched against the Move

Following the negative effect of the sanctions on Russian stocks, eToro informed its customers it is delisting Magnit PJSC. Additionally, eToro forced liquidated positions of Magnit, which is one of the largest supermarkets in Russia.

The broker released the following statement on its website: "All of the instruments that we offer for trading and investing on our platform are subject to the conditions in the underlying markets that they are based on. The continued availability of Russian based instruments is dependent on their availability on the world exchanges and any international sanctions.

"In addition, we *may* limit the ability to invest in any instrument on our platform based on our internal risk management Risk Management One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, One of the most common terms utilized by brokers, risk management refers to the practice of identifying potential risks in advance. Most commonly, this also involves the analysis of risk and the undertaking of precautionary steps to both mitigate and prevent for such risk.Such efforts are essential for brokers and venues in the finance industry, given the potential for fallout in the face of unforeseen events or crises. Given a more tightly regulated environment across nearly every asset class, Read this Term considerations. This may include, but is not limited to, closing positions in certain instruments.

"Currently, due to the *severe* lack of liquidity in the underlying markets and, therefore, what is available to eToro from our liquidity providers Liquidity Providers A liquidity provider (LP) constitutes either individual and/or institution that functions as a market maker in a given asset class. Broadly speaking, liquidity providers will act as the both the buyer and seller of a particular asset, thus making a market. In the equities space, many stock exchanges rely on liquidity providers who make the commitment to provide liquidity in a given equity. These liquidity providers commit to providing liquidity in the hopes that they will be able to make a profi A liquidity provider (LP) constitutes either individual and/or institution that functions as a market maker in a given asset class. Broadly speaking, liquidity providers will act as the both the buyer and seller of a particular asset, thus making a market. In the equities space, many stock exchanges rely on liquidity providers who make the commitment to provide liquidity in a given equity. These liquidity providers commit to providing liquidity in the hopes that they will be able to make a profi Read this Term, it is necessary to remove $MGNTL.L (Magnit PJSC) from our platform. Please read the following carefully:

"Any investment in $MGNTL.L that remains open at the end of business on Friday, March 4, 2022, will be closed at the last tradable rate in the market.

"The value of the position at the time of closure will be returned to the account balance. Due to the impact of the current geopolitical events on markets, we are reviewing the liquidity and our ability to continue offering the following stocks:

$OGZDL.L (Gazprom OAO)
$LKODL.L (Lukoil OAO)
$MNODL.L (MMC Norilsk Nickel OJSC)
$NVTKL.L (NOVATEK OAO)
$ROSNL.L (Rosneft OAO)
$SBERL.L (Sberbank of Russia)
$SVSTL.L (Severstal PAO)
$SGGD.L (Surgutneftegas OAO)
$ATADL.L (Tatneft OAO)

"We will do our best to notify you in advance if the availability of any of the above stocks changes."

source: eToro

eToro's customers received $0.0124 per share. The stock has depreciated over 95% in the past few weeks.

source: London Stock Exchange

eToro Clients Launch a Petition

Investors that are holding Russian American depository receipts (ADRs) / global depository receipts (GDRs) are suggesting the force liquidation in the stock may not be legal.

source: change.org

Traders were displeased with eToro's decision. Furthermore, a petition has been launched against the move, and 757 traders have already signed the petition.