Broker Cluj has conducted forward exchange transactions worth 114 million euros over the past six months, according to Petru Prunea, chairman of the brokerage.
On the Stock Exchange, Broker in the first 9 months of this year handled transactions worth almost 750 million euros. Broker launched the forward trading services in late March, being the first securities firm to offer its customers the possibility of operating forward exchange transactions. Broker trades on the forex market on behalf of its customers through a bank. Prunea was unwilling to disclose the name of the respective bank.
"We are satisfied with how this service has been going so far. We have 6 customers currently and transactions conducted until now stand at 114 million euros. The main advantage we are offering our customers is the possibility of trading sums below the level of those required by banks," stated Prunea.
The forex market has no rules in place to set limits on the capital needed to carry out forward exchange transactions, with banks being able to adopt specific policies.
Nonetheless, in the case of speculative operations, banks as a rule require sums above the level of 100,000 euros.
As regards hedging operations carried by economic operators seeking protection from the unfavourable foreign exchange fluctuations, the required sums are usually smaller.
"Our customers conduct only speculative trades. These operations are done by experienced investors. We only serve as intermediaries and we do not advise them when they place their orders," specified Prunea.
He estimates Broker will be able to add at least another 5 customers for forward transactions by yearend. "We have neither the time, nor the necessary people to go looking for customers; instead we wait for customers to come to us (...)," says Broker chairman.
The customers of the brokerage can trade on the EUR/RON, USD/RON, euro/dollar and pound sterling/dollar exchange rates.
Investors wanting to bet on the exchange rate must deposit a 5% margin for contracts falling due in less than 30 days, and a 10% margin for contracts falling due in a period of between 30 and 90 days.
Broker Cluj is one of the most dynamic brokerages on the capital market, with considerable investments on the Stock Exchange and on the Sibiu futures market.
Broker ranks 5th in the top of brokers operating on the Bucharest Stock Exchange after the first nine months of this year, with a market share of 5.3%.
On the Sibiu market, Broker comes second, with 624,000 contracts sealed during the January-September period.
The company in the first nine months of this year posted gross income worth 3.7 million euros (13.19 million RON), up around 12% compared with the profit registered in the same period of last year.
The company expects this year's gross income to amount to 4.5 million euros (16 million RON). Last year, the company's income revolved around 3.6 million euros.
Broker Cluj
Posted gross income worth 3.7m euros in the first 9 months, up 12% from the same time last year
Expects to derive gross income worth 4.5m euros this year
Ranks 5th in the top of Stock Exchange brokers after the first 9 months of this year, with a 5.3% market share
Ranks second on the Sibiu market, with 624,000 contracts sealed in January-September period
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