The Bank of Russia has introduced a new category of brokerage clients, termed "clients with an initial risk level," which will include beginner investors lacking experience in trading securities or derivatives. This initiative is part of the Bank of Russia ordinance aimed at mitigating risks associated with leverage trading for novice investors.
Under the new regulations, leverage will be reduced for beginners. Additionally, brokers are required to inform these investors in advance if their orders might result in a leveraged trade.
The Bank of Russia has also revised the procedure for calculating risk coverage ratios across all client categories, extending these calculations to options contracts. Currently, margin trading regulation includes securities, foreign currency, precious metals, and futures. The established ratios set limits on brokers' ability to perform clients’ leveraged transactions and define risk thresholds that could trigger the forced closing of clients' positions. These measures are designed to help brokers manage potential losses incurred by clients in margin trading.
The new rules are scheduled to take effect on April 1, 2025.
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