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Wednesday, 17 October 2018

FRA to implement margin trading credit score regs next year

REGULATION WATCH- FRA to introduce regs next year on credit scores for margin traders: The FRA is planning to implement next year recently-passed regulations that allow brokers to unilaterally sell shares belonging to clients trading on margin if their credit score falls below a certain threshold, Al Mal reports. Earlier this year, the FRA approved allowing brokers to sell a client’s shares in a margin trade, without their consent, if a client’s iScore falls below 400 points. The regulations stipulate, however, that the client be given a grace period to bring up their credit rating.

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