FFMS lent a shoulder

Oleg Vyugin intends to stop unfair competition

The Federal Financial Markets Service has finally approved new rules for margin trading, which were completely reworked by it together with professional market participants. According to the Federal Financial Markets Service, these rules are close to the real situation on the market and are aimed at stopping unfair competition.

With margin trading, a broker can provide its clients with the opportunity to buy or sell securities using the company's own funds. According to the previous provision, clients could carry out transactions with a leverage of 1:1 (that is, allow companies to lend a client 1 ruble for 1 ruble of his own funds). However, previously, the regulator’s requirements did not stop either brokers or their clients who wanted to make money on the dynamics of stock quotes. Professional participants used various “gray” schemes, with the help of which the leverage reached 1:10 or 1:12. Moreover, such schemes were used by almost all major Internet traders. The regulator conducted inspections of companies from time to time, identified violations, and even forwarded its findings to law enforcement agencies. However, the situation did not really change.

The main innovation is that from now on, broker clients will have the legal right to trade with a leverage of 1:3 (that is, allow companies to lend a client 3 rubles per ruble of his own funds).

The Federal Financial Markets Service proposed a whole range of documents aimed at combating unfair competition: provisions on liquidity criteria and on a qualified investor, a resolution on margin trading. In parallel with these documents, new requirements for the own funds of professional participants have already come into force, designed to prevent opportunities for inflating capital.

In addition to increasing the amount of leverage, another significant change is the introduction of the concept of “qualified investor”. According to Deputy Head of the Federal Financial Markets Service Vladislav Streltsov, the right to trade with a leverage of 1:3 will be given to clients who have already been working in the market for at least six months, who have been trading with a leverage of 1:1 for three months, and, finally, whose own funds must be at least 600 thousand . rub. The new provisions, Mr. Streltsov believes, should make “gray” schemes more expensive for brokers. “The desire of clients and brokers to make money in a growing market is understandable. But when a company is undercapitalized and pursues an excessively risky policy, this leads to its bankruptcy. This happened, for example, in 2003 with “Prologue,” Streltsov believes.

Professional market participants consider the innovations of the FFMS to be timely. “For the current very volatile stock market, the margin size of 1:3 is the most optimal. For those investors who prefer a more risky game, there are other instruments - futures and options. There you can get loans from a broker 1:10,” says Managing Director of the Securities Department of Troika Dialog Investment Company, Chairman of the Board of Directors of RTS Jacques der Megredichyan.

“The Federal Financial Markets Service is forming a regulatory framework based on Western principles,” says Maxim Trotsenko, vice-president of the BrokerCreditService company. -- The new provisions have become more reflective of the real situation on the market and, perhaps, will force brokers to abandon “gray” schemes. Accordingly, both professional participants and their clients will be better protected.”

Natalia ROMANOVA