AE92 Axles

[varix]

I have just noticed that there is a metal ring loose on the front right axle (non gear box / longest axle side) of my AE92 4AGE Trueno. It is obvious that it is supposed to be attached to about the middle of the axle and is rubbery on the inside but the ring itself seems to be steel coated in rubber.
Can anyone tell me what this is? My first guess would be some kind of balance? It has obviously sheared off and I am wondering if it is really needed or perhaps I can just cut it off. It is obviously not achieving much by just rolling around up and down the axle.