The RTS Index fell about 86% during Russia’s 1998 financial crisis, becoming a symbol of the crash.
The Russian Trading System, or RTS, was established in 1995 as a major market for Russian shares. During the 1998 crisis, the index plunged as investors reacted to falling commodity prices, weak public finances, political uncertainty, and concerns about Russia’s ability to maintain its currency regime and repay debt.
Russia devalued the ruble and defaulted on domestic debt in August 1998. The shock also contributed to the near-collapse of the U.S. hedge fund Long-Term Capital Management, whose positions were tied to global financial markets.
The RTS Index is sometimes confused with the MICEX Index, another major Russian benchmark. The two exchanges later merged, and the combined Moscow Exchange introduced the MOEX Russia Index in 2011.