The RTS Index lost about 80% during Russia’s 1998 financial crisis and stock-market crash.
The Russian Trading System, or RTS, was launched in 1995 and became a major benchmark for Russian shares priced in U.S. dollars. In 1998, falling oil and commodity prices, weak tax collection, political instability, and heavy government borrowing strained Russia’s finances. The government devalued the ruble and defaulted on domestic debt in August.
The RTS Index suffered an extraordinary collapse as investors withdrew capital and Russian companies faced severe financial pressure. The crisis also contributed to the failure of Long-Term Capital Management, a highly leveraged U.S. hedge fund whose losses threatened wider market stability.
The RTS should not be confused with the ruble-denominated MICEX Index, another important Russian benchmark. In 2011, the RTS and MICEX exchanges merged to form the Moscow Exchange. The approximate 80% loss refers to the RTS’s fall during the 1998 crisis, not a single trading day.