MSCI asks clients if Greek stock market closure warrants different treatment

[July 07, 2015] LONDON (Reuters) - Index provider MSCI on Tuesday asked clients for feedback on whether Greece's decision to temporarily shut its stock market should be treated differently from the usual practice of waiting 40 days before taking action.

The Athens Stock Exchange and Greek banks have been closed since June 28 after the government announced a referendum on creditors' bailout proposals.

Last week, MSCI said Greece could be relegated to a "standalone" index from its current emerging markets status if capital controls were prolonged.

MSCI said the general practice was that closures of stock exchanges of less than 40 consecutive business days do not lead to any action but after this period has lapsed the index provider launches a consultation on proposals on the market's membership of various global and regional indexes.

MSCI said it welcomed "feedback from market participants on whether it would be appropriate to follow this general practice in the case of the current market closure in Greece or if any alternative treatment would be warranted."

It also asked for feedback on Greece's capital controls and their implications for international institutional investors.

(Reporting by Sujata Rao; editing by Mike Dolan)

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