The RTS Index lost about 90% of its value during the 1998 Russian financial crisis. The collapse was one of the most severe stock-market declines ever recorded and reflected a broader crisis involving government debt, the ruble, banks, and falling commodity revenues.
Russia had accumulated substantial short-term debt while tax collection was weak and oil and other commodity prices were low. Investors became increasingly unwilling to roll over government obligations. On August 17, 1998, the government devalued the ruble, declared a moratorium on some foreign debt payments, and restructured domestic debt.
The RTS Index, which was based in U.S. dollar terms, plunged as foreign investors exited Russian assets and the ruble lost value. The crisis also contributed to the failure of the hedge fund Long-Term Capital Management, whose positions required a coordinated private-sector rescue arranged with Federal Reserve involvement.
The RTS Index was launched in 1995 and became a major measure of Russian equities. It was later combined with the MICEX index into the Moscow Exchange benchmark, so older accounts may use RTS and newer accounts may refer to the MOEX Russia Index.