Broker VTB urged to close positions with “shoulder” in foreign securities

The broker of VTB Bank, which fell under US sanctions, warned of the forced closing of long margin positions in foreign securities and securities in foreign currency. VTB offers customers to close them themselves

Photo: Oleg Yakovlev / RBC

The VTB Investments service warned clients about the need to close long margin positions (the so-called “leverage” operations, when an investor buys securities, including with borrowed funds received from a broker) in foreign securities, as well as in foreign currency. The broker invited clients to exit these positions on their own, stressing that due to the sanctions, these securities are excluded from the list of margined securities from February 25, “which may lead to the forced closure of such positions.” The corresponding announcement appeared in the VTB Investments application.

Short margin positions will also be forcibly closed, reported at VTB.

VTB has created instructions for clients after the imposition of sanctions by the US and Britain

Photo: Andrey Lyubimov / RBC

There is no definite answer to the question whether it is possible to transfer foreign securities to the account of another broker. “You can submit an instruction to transfer securities at one of the VTB offices that provide investment services. Your order will be transferred to the depository. Based on the results of the review, we will inform you of its status,” VTB said.

Operations to withdraw funds secured by any securities in any currency are not available. “We are working on finding possible solutions to restore this function,” VTB stressed.

ttn-1