Introducing limitations on leverage for novice investors
26 July 2023
News
The Bank of Russia initiative introduces a new category of broker clients, which includes individual investors with less than one year of experience in trading with leverage (conducting unsecured transactions). This was laid out in a Bank of Russia draft ordinance aimed to replace the existing regulations on margin transactions.
Under the new rules, leverage will be reduced for such clients, and brokers will be required to notify them in advance of such transactions. Furthermore, the existing requirements for unsecured transactions will also apply to options trading.
The objective of this initiative is to limit investor risks. Comments and suggestions regarding the draft will be accepted until 16 August 2023.
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