Regulatory Alerts2006-03-16 | Circular 3/2006Added
Circular 3/2006 — Amends Circular 115/2002
This circular amends Circular 115/2002 to authorize securities brokerages to extend credit to clients for the purchase and sale of shares. It establishes that credit amounts for share purchases cannot exceed 50% of the acquisition value, requiring the remainder to be covered by cash or collateral. For short sales via securities lending, clients must provide collateral equal to at least 50% of the sold shares' value. The document mandates a minimum guarantee coefficient of 0.25, defines eligible collateral and credit ratings, and requires written contracts with specific risk disclosures and daily record-keeping.
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