2022-01-18

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Regulations on Margin Trading

The Central Bank of the Republic of Azerbaijan issued Resolution № 23/2 to establish comprehensive regulatory requirements for margin trading across securities and Contracts for Differences (CFDs). The framework mandates that licensed investment companies maintain robust risk management systems, segregate customer funds, and enforce specific margin limits, including a 40% initial margin for securities and leverage caps ranging from 2:1 to 50:1 depending on the underlying asset. Additionally, it standardizes customer protection measures such as professional investor classification, real-time trading platform disclosures, mandatory risk notifications, and strict daily electronic reporting to ensure market transparency and stability.

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Central Bank of Azerbaijan

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Source: Central Bank of Azerbaijan — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works

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