OREANDA-NEWS. April 13, 2009. The Federal Securities Service (FSS) approved an order amending the regulations for margin trading, the financial market watchdog reported Friday. The order says a broker’s execution of margin and unsecured securities transactions is subject to restrictions, i.e. a broker will not be entitled to execute a margin and (or) unsecured transaction to sell securities at a price 3% below the closing price of a stock on the previous business day.

In addition, a possibility is envisaged to strike margin and (or) unsecured transactions at a price 3% below the closing price if such transactions trigger upside on the securities market. In line with the effective statutory guideline, margin and (or) unsecured transactions are prohibited if the price of a respective transaction is 5% or more below the closing price.

The order also stipulates the possibility for a broker to impose stricter limits on margin and (or) unsecured transactions on the basis of agreements signed with clients. FSS pointed out in a press release that in reviewing this order the more careful attention was devoted to the discussion of the cap for fluctuations of a stock’s current market price.