City Index places trades in CFDs on stocks subject to US restrictions on “close only”
UK CFD and Forex broker City Index, a part of StoneX Group Inc (NASDAQ:SNEX), is placing certain trades in “close only” mode. The reason for that is the United States Executive Order 13959.
In an update to its clients, the broker explains that, due to United States Executive Order 13959 trading restrictions have been placed on a number of stocks. Trades in these instruments are now placed on “close only” trading for clients.
The current list of restricted markets can be seen below:
- China Telecom Corp (HKD) CFD
- China Communications Construct CFD
- China Railway Construction CFD
- China Mobile (HKD) CFD
- CRRC Corp Ltd CFD
- SMIC (Semiconductor Mfg Intl) CFD
- China Unicom (HKD) CFD
- China Mobile (USD) CFD
This list will be updated if further markets are added.
Let’s note that, earlier in January, NYSE published an updated guidance on NYSE Group actions to comply with Executive Order 13959.
Let’s note that Executive Order 13959 (“EO 13959”) prohibits, beginning at 9:30 a.m. eastern standard time on January 11, 2021, any transaction in publicly traded securities, or any securities that are derivative of, or are designated to provide investment exposure to, companies identified as a Communist Chinese Military Company (CCMC).
On January 5, 2021, the Department of Treasury’s Office of Foreign Asset Control (OFAC) provided additional, specific guidance to the NYSE stating that U.S. persons cannot engage in certain transactions (as specified in EO 13959) in the ADRs of China Telecom Corporation Limited (CHA), China Mobile Limited (CHL), and China Unicom (Hong Kong) Limited (CHU) after 9:30 a.m. eastern standard time on January 11, 2021.
Accordingly, NYSE Regulation has announced that it will move forward with delisting the three issuers that was initially announced on December 31, 2020 to comply with U.S. law. NYSE will suspend trading in these issuers at 4:00 a.m. eastern standard time on January 11, 2021.