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Showing posts with the label Fix Price

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...
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Fix Price share swap program

Fix Price has announced a share swap program. The share swap allows ADR-holders to swap the ADR's in Fix Price for ordinary shares of the Russian PJSC Fix Price. Fix Price has communicated that the transaction should be considerd economically neutral and that Kazakh holding of Fix Price will remain the majority shareholder in PJSC Fix Price. All information can be found on: https://exchange.fix-price.com/en/. Interested investor are advised to read the memorandum that is published on the website above.  Unfortunately, investors from countries that are considered unfriendly from a Russian perspective cannot participate in the share swap, unless the investor received permission from the Russian government. This permission can be requested from the Government Commission for Control over Foreign Investments in the Russian Federation (http://government.ru/department/560/) on the basis of article 1(b) of Decree of the President of the Russian Federation dated 01.03.2022 No. 81 (as amende...
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