For customers who selected brokerage services using QUIK and enabled the service for making transactions in the Main Market sector of the Moscow Exchange Group, Sberbank offers a service for making REPO Transactions on the over-the-counter market (OTC-REPO).
The service for making REPO Transactions on the over-the-counter market (OTC-REPO) is an alternative to loans secured by securities and enables the customers to obtain, within a short period and on a paid basis, the required funds at the expense of securities available in their portfolios.
The key benefit of this service is the ability to obtain funds without selling securities.
The OTC-REPO Transaction involves two parts:
- The first stage. The client sells securities at the price calculated considering the amount of initial discount on the closing price of the preceding trading day and obtains funds transferred to their brokerage account.
- The second stage. Upon expiry of the term established upon the OTC-REPO transaction, the customer buys out securities sold during the first part of the OTC-REPO Transaction at a price adjusted for the REPO Rate and the REPO Term.
The list of securities allowed for the OTC-REPO transactions, OTC-REPO Rates, OTC-REPO Terms, Minimum Levels of Initial Discounts, as well as Initial Levels of Margin-Call and Knock-Out are provided in this section, in the List of Securities and Terms of OTC-REPO.
OTC-REPO Transactions may be performed only if the expected volume of the First Part of the OTC-REPO Transaction is equal to or exceeds 200,000 roubles.
To calculate the parameters of an OTC-REPO Transaction, the OTC-REPO calculator may be used.
Detailed information about the service, including OTC-REPO Regulations, is provided in the training course provided for over-the-counter repurchase transactions (OTC-REPO) service.