AutoREPO operation, i.e. product for low-risk placement of funds, is available for clients of JSC “BCC Invest”. AutoREPO is a way of a short-term placement of funds against securities.
How does it work?
- The client opens a brokerage account (free of charge)
- Sends money to his/her account
- Gives an order to place his/her money
- Withdraws funds to own account with income in 7, 14 or 30 days. Re-placement of funds is possible.
Why is that as reliable as at the ank?
Client’s (lender’s) interests are protected from 3 sides:
- Collateral is a high-rated security.
AutoREPO instrument is secured by collateral. Government securities, shares included in the official list of the Stock Exchange in the first and the highest categories, as well as other high-rated and liquid instruments act as collateral.
- Discount on collateral is up to 30% to the current fair value. The Stock Exchange accepts securities with fixed discount as collateral in order to protect the lender (one who gives money) and blocks them prior to completion of transaction.
- Responsibility of an intermediary (Broker)
JSC “BCC Invest” Broker and the parent bank’s reputation serve as a commitment for the performance of their liabilities to the Client.
Furthermore, the Broker controls risks based on the fact that the borrower is a reliable client of the Broker.