Position Keeping Schemes and Margin Trading
QUIK employs three position keeping schemes for clients, two of which support margin lending in operation.
Schemes for position keeping
- ‘MD+’*
This scheme ensures compliance with the Bank of Russia Ordinance dated February 12, 2024 No. 6681-U “On the Requirements for Brokerage with Regard to Certain Transactions at a Client’s Expense”, which came into force on April 1, 2025.
Client portfolios may include positions in securities, currencies, precious metals, futures, and options. The MD+ scheme can also be used for clients whose portfolios include only derivatives market assets.
The customer’s purchasing power is checked in accordance with the requirements of the Ordinance – when a client sends an order, the following prohibitions are controlled:
- the exceeding of the client portfolio current price by the adjusted initial margin,
- creation or increase of a short position when the market price of a security falls by 5% or more,
- creation of an uncovered position in non-liquid instrument.
Classification of instruments and calculation of risk parameters are carried out on the basis of effective discounts. The discounts are generated on the basis of the Central Counterparty’s (CC) risk rates transmitted online from the Moscow Exchange Trading System, as well as on the broker’s own discount values set in the system settings.
For clients with the MD+ scheme, it is possible to configure sets of instruments with dependent prices. This feature allows reducing the amount of collateral required for open positions and client orders by netting risks of related instruments.
* margin lending is supported
- For an open position
This scheme is used to limit operations of traders (of a company or bank).The scheme allows setting and monitoring the following limits on the size of positions in terms of cash:
- a short or long position in a specific security,
- the total volume of short and long positions in all securities,
- the total volume of all positions, short or long, in securities and cash,
- the turnover of operations for a trading session.
Managing Margin Trading
QUIK provides the following tables to review and monitor margin lending parameters and available assets, and to open short and long positions:Client portfolio: with such parameters as client’s portfolio value; minimum, initial and adjusted margin; asset sufficiency; margin ratio; used leverage; monetary evaluation of assets available for opening positions for margin and non-margin securities as well as client's own assets, and debt to the broker. The set of displayed parameters depends on a selected margin-lending scheme. The table displays information on all client codes that are available to the current user. Thus, the broker or a sub-broker may review information on all of their clients.
Buy/Sell: with the current size of position in securities and cash value for each instrument in the client's portfolio, the volume of securities available for opening short and long positions. When the margin-lending scheme 'By discounts' is used, the table also displays discounts used for calculating margin parameters.
The state of account: table allows monitoring online one’s own position in cash and securities. The table functionality lets the user close and 'reverse' either selected or all available positions.
To facilitate tasks of risk management and automated execution of regulatory procedures when providing margin lending to clients on stock, FX, and derivatives markets, risk managers are offered to use a specialized terminal Colibri which allows:
- sending ‘margin calls’ and reporting on sent notifications,
- calculating a planned client position with potential values of margin indicators in case of withdrawal or additional deposit of cash,
- closing client positions when the client’s margin status does not meet certain conditions,
- rolling over to the next day short and long positions, that clients leave open before the trading session is finished, by executing REPO trades or REPO with CCP.
Global Limit on Borrowed Funds
To simplify control over the use of margin resources, the broker may use a global limit on borrowed funds that applies to all its clients or to its sub-broker's clients (limit on a sub-broker). The global limit may be set on each type of security or on cash.The tasks resolved
- the broker controls the volume of used borrowed funds by each instrument,
- the broker distributes borrowed funds between sub-brokers,
- QUIK server rejects client's orders that exceed the broker's position in a given instrument.