Compensation from broker for Russian CFD (contract for difference)

The UK Financial Ombudsman has ordered Interactive Brokers (IB) to compensate an investor that invested in a Russian CFD (contract for difference). In this case the CFD was for 10.000 Sberbank ordinary shares. Interactive Brokers refused to close the position because they could not trade the underlying Sberbank shares Interactive Brokers had bought to cover the CFD contract. From March 2022 onwards, IB raised the margin required for the position to 100%. By August 2024 the interest alone charged on the position had amounted to around USD $12,000.  The European Securities and Markets Authority (ESMA) introduced a margin close-out rule in 2018 that states that CFD providers have to close positions once the net asset value in the investor's account drops to 50% of the required margin. The Financial Ombudsman ruled that Interactive Brokers was required to stop charging interest and other charges on the CFD position once they had to close the position on the basis of the ESMA 50% margin...

Evraz update - getting your shares settled

Congratulations to all that now received the transfer information from Evraz PJSC (formerly known as NTMK). The next steps depend on your holding method. If you opened an account with ROST and requested Evraz PJSC (NTMK) to transfer the shares to your account in ROST there is no further action required. The shares will be transferred over the next few days.

If you instructed Evraz PJSC (NTMK) to transfer your shares to your brokerage account you will need to instruct your broker to place a matching inbound instruction. From our previous experience this can be done after the settlement in the instructions, but it is better do so sooner rather than later.

For Cifra the normal online transfer form cannot be used. You currently need to send a ticket to Cifra support with the attachment / details provided by Evraz PJSC and request them to complete the paper transfer form for you. Support will then reply with a pre-filled form that you only need to print and subsequently sign and date. You can then return a scan of the signed form via a secure (make sure you start a secure session) message in the Cifra app or online portal. 

For other brokers you or your representative may need to visit a branch in person. It is best to engage with your broker to discuss with them how to proceed.