OREANDA-NEWS. November 09, 2009. AB DnB NORD Bankas, the country‘s leader in investment products market, offers a new possibility for the clients to make repurchase deals (repo deals) in the bank’s newly installed on-line trading platform. The clients using DnB NORD e-commerce system will be able to make repo deals in most liquid securities of Lithuania, Latvia, and Estonia without leaving home, reported the press-centre of DnB NORD Bankas.  

“Making repo deals online takes just a few minutes and gives the client control over the terms upon which they wish to execute a deal. The proceeds are transferred to the client within 10 minutes, and can be used to purchase other financial instruments in the same e-commerce platform,” says Mindaugas Tutlys, Manager of DnB NORD Bankas’ Capital Markets Unit.

In a repo deal, where the client borrows funds by temporarily selling securities to the bank and repurchasing the same securities for a pre-agreed price in the future. The loan amount depends on the market price for the financial instrument and the collateral rate set by the bank.
In bull markets, repo deals are frequently used as financial leverage enabling investors to boost yield on their portfolio. Because of the higher market risk inherent in such deals, AB DnB NORD Bankas shall offer this service to advanced investors.

Trading securities online reduces operating costs therefore AB DnB NORD Bankas will offer its customers trading as well as repo deals at particularly favourable commission fees. Information about the temporarily transferred securities is shown on the on-online trading platform so that the client can follow their market prices.