Alongside the transactions performed on the exchange market of MICEX-RTS, as part of the Conditions for the Provision of Brokerage Services by Sberbank of Russia, clients are offered brokerage services on the OTC market.
This service allows for transactions with a wide range of securities, including the bonds of the Russian Federation external bond loan, corporate Eurobonds and foreign government bonds, as well as depositary receipts (ADR/GDR).
Investments in foreign currency-denominated bonds provide the following benefits:
Fixed yield. Most bonds are issued with a fixed, preset coupon yield and provide a relatively high income with the corresponding risk.
Reliability. Eurobonds are issued by major issuers, whose reliability rating is confirmed by international rating agencies.
Minimising foreign currency risk. Investments in foreign currency-denominated bonds protect against national currency fluctuations. Coupon payments on these bonds are also made in foreign currency.
Investments in depositary receipts (ADR, GDR) provide the following benefits:
Access to stocks of companies from various sectors of the world economy. Equity securities of a number of Russian companies can only be purchased in the form of ADR/GDR on Western markets.
Additional opportunity to diversify the securities portfolio.
High liquidity of ADR/GDR markets. Unlike stock exchange trading, the process of making transactions on the OTC market cannot be interrupted or stopped, even in the event of significant price changes.
More detailed information on the service, including the establishment of contractual relations, form of submission of client orders, execution of transactions by a Sberbank broker and the reporting documents provided to the Client, is available in the Conditions for the Provision of Brokerage Services by Sberbank of Russia.
Brokerage services on the over-the-counter market (ОТС) are provided only for legal entities and individuals recognised by Sberbank as qualified investors in accordance with the requirements of Federal Law No. 39-FZ On the Securities Market (clause 3, art. 51.2) and the Regulation Procedure for recognising persons as qualified investors approved by Order No. 08-12/pz-n of the Russian Federal Financial Markets Service, dated March 18, 2008.
To obtain the status of a qualified investor, the legal entity should be a commercial organisation and meet at least two of the following requirements:
- have an equity capital of at least RUB 100 million;
- have conducted, on a quarterly basis, at least five transactions with securities and/or other financial instruments over the past four quarters, the total amount of which for the four quarters totalled at least RUB 3 million;
- have a turnover (income) from sales of goods (works, services), according to accounting data (national standards or regulations for accounting and reporting for foreign legal entities), of at least RUB 1 billion for the last reporting year;
- have assets, according to accounting data (national standards or regulations for accounting and reporting for foreign legal entities), of at least RUB 2 billion for the last reporting year
To determine the parameters listed in subparagraphs b), the following securities and financial instruments shall be taken into consideration:
- Government securities of the Russian Federation and its constituent entities;
- Municipal securities;
- Shares of Russian joint-stock companies;
- Bonds of Russian issuers;
- Government securities of foreign countries;
- Shares of foreign joint-stock companies;
- Bonds of foreign issuers;
- Russian depositary receipts;
- Investment stakes;
- Other financial instruments (futures, options) circulating on Russian exchanges.
To obtain the status of a qualified investor, please contact a Sberbank office which offers brokerage or trust management services, and submit your application and all essential documents that the Bank may request.