BCS takes a very flexible approach to collateral and margin trading
The following currencies can be held on account and will be assessed as collateral for trading all domestic Russian platforms
In addition, any assets held on the account will be assessed for margin trading. The columns is a simple discounted scheme, where margin assets are subject to a discount based on liquidity and volatility before being assessed as margin collateral.
Cash Equity: The core margin offset available is for DR vs local where there is sufficient liquidity and the DR program is open. FX: Driven by client demands we are now offering leverage and cross margining to trade FX on MoEx versus EBS and Reuters in London.
Index Arbitrage: Leverage and margin offset for the RTS Index Futures vs underlying basket of stocks — We have developed a service to offer extra leverage for arbitrage strategies between the RTS Index Futures and a correlated basket of stocks, which can be composed of Russian DRs and local stocks (MICEX Market).
Multi-Netting, Futures vs SPOT: This is our latest offering which allow us to reduce margin requirement for executed positions.
BCS is one of the most active members of the local Russian REPO market. Over $4 Billion of clients’ assets in custody provides for stable borrow and our deep and broad inventory allows us to offer aggressively priced stock loan supply.