eganov_denis (eganov_denis) wrote,
eganov_denis
eganov_denis

We changed our broker company in Russia

I don't understand why the broker companies don't develop their competitive advantages to provide a better service for their clients. I had a lot of negotiations with Russian broker companies in 2013 and only one company could offer our hedge-fund such service that we needed.
In October of 2013 I met with a broker company Uralsib which offered me the necessary conditions for our hedge-fund "Eganov Asset Management  Stocks&Derivatives Strategies S.P.". Other conditions for trading by all brokers are the same. Today is a good time to transfer assets of our hedge-fund to another investment broker.

From the very beginning I have not been content with the conditions of our agreement with the broker BCS. The main imperfection of BCS and the others brokers are that they can't take asset backing in dollars on rate for market of the derivatives. Today the company BCS offers the roubles to put dollars in pledge on compound interest rate of 14% annually. Hedging of future costs is approximately 7% annually. You may ask why I need to trade on the Russian market. In our hedge-fund we trade the option strategies using the futures for delta-hedging. As opposed to trading in stocks, we don't open positions in all of the invested amount of money in the broker company because in trading for options and futures needs to use leverage. To conduct trading in options and futures we use 30% from assets of the hedge-fund in the broker account.

                            For example: A client invests $100 in trading. To start trading the client uses only $30 which is converted to roubles. Currency rates fluctuate to illustrate this course of exchange: 35 roubles to 1 dollar, gives 1050 roubles to trade options and futures. Accordingly the client has to hedge only $30 to secure the exchange in rate currency.

Sometimes the exchange can raise the level of collaterals for guarantees and in this case we have to convert 70% from the hedge-fund dollar assets in roubles to continue our trading for the client. This process of converting takes usually one working day, but for our strategies it is a very high risk. The broker BCS couldn't give money in pledge of dollar assets and so our hedge-fund couldn’t trade on these days. The BCS could not put the roubles in pledge dollars for trading and in these cases our hedge-fund had a high risk.  Only once did the BCS put roubles in pledge dollars as an exception.

We are happy to be working with the Uralsib and are looking forward to investing with lesser risks and more benefits to our clients.
Tags: ПИФы, бизнес в России, доверительное управление, инвестиционные компании, хедж-фонды, ценные бумаги
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