Marginal lending
Nordea Bank offers margin lending on financial markets in accordance with the following documents:
- Russian Federal Financial Market Service Order 06-24 issued 7 March 2006 On Confirmation of Broker Securities Market Transactions with Cash and/or Securities Transferred on Loan to the Broker by the customer (Margin Trading).
- Russian Federal Financial Market Service Order 05-53 issued 27 October 2005 On Confirmation of Margin Trading Process for Professional Securities Market Traders Providing Brokerage Services for Certain Categories of customers.
- Russian Federal Financial Market Service Order 09-13 issued 9 April 2009 On Changes to Rules Governing Brokerage Activities upon Completion of Securities Market Transaction with Cash and/or Securities Transferred on Loan to a Broker by the customer (Margin Trading) in confirmation of Russian Federal Financial Market Service Order 06-24 issued 7 March 2006.
- Bank regulations.
Nordea Bank offers customer leveraging under the following conditions:
|
Standard conditions (2/1) |
Conditions for professional customers* (4/1) | |
|---|---|---|
| Initial leverage ratio |
50% |
25% |
| Margin call leverage ratio |
35% |
20% |
| Critical leverage ratio |
25% |
15% |
* In accordance with Russian Federal Financial Market Service Order 05-53 issued 27 October 2005, customers are categorised professional if active on the equities market for more than six months and with leveraging for more than three months and possess assets valued at over 600,000 roubles satisfying liquidity criteria for securities set by a federal executive agency for the securities market.
Leveraging for stock trading under standard terms (2/1) requires no additional application. Credit is automatically offered upon customer request. Use of credit is free for one trading session.
The following form is required to receive leveraging under professional customer terms (4/1). The form may submitted by fax to +7 495 777 34 77 (ext. 1286) or directly in personal at the bank.
Application for professional customers (in Russian)
Customer loans are available towards the acquisition of the following liquid stocks traded on the MICEX:
| Funds towards the purchase of the following shares: |
|---|
| Gazprom - common
Lukoil - common NorNikel - common Surgutneftegas – common Sberbank - common Sberbank- preferred Rosneft - common VTB Bank- common Tatneft – common RusHydro- common Severstal - common MTS - common Transneft – preferred UES – common |
Note for customers using the margin trade service:
According to the Regulation 2 Supplement 12 On Conditions for Completing Marginal Transactions, the bank sets a minimum limit of customer internal funds at 30,000 roubles to take advantage of this service.
Note:
In case the customer’s internal funds do not fulfil the banks requirements, the customer is required to close the marginal position or increase internal funds (including the customer’s investment account) before the end of the trading session on the workday on which the limitation was violated. Customers failing to do so, force the bank to close the customer margin position based on Regulation 5.7.1.
There will be a commission charged for use of leveraging according to the tariffs for broker services.