Repo agreements / Services / Trading / Elana

A repo agreement represents financing against collateral of securities. They are transferred, with the seller committing to repurchase them at a specified price on a specified future date

What does ELANA Trading offer?

ELANA Trading offers brokerage services for repo agreements secured by shares on the Bulgarian Stock Exchange.

The price at which the transaction is concluded is calculated by applying the so-called "haircut" - a deduction from the current market price of the shares, which is usually 50%, but can vary depending on the financial instrument, the volume of the transaction, the quality characteristics of the issue, and the counterparty in the transaction.

What are the advantages of repos?

You can quickly borrow cash against pledged securities traded on the BSE;
You have the ability to react quickly and achieve a return on your investment;
You have access to short-term financing due to ownership of Bulgarian shares.

Risks

Repo agreements carry additional risk and are more suitable for experienced investors.

Conditions for mediation of ELANA Trading

Amount of cash

The minimum amount that can be obtained is BGN 10,000. There are no limits on the maximum amount.

Duration of use

The duration of use is a maximum of 6 months. Upon expiration of the contract, the repo agreement is closed, or if the client wishes to extend, new terms are negotiated and a new contract is signed. When closing the repo agreement, the client pays in advance the agreed price for the repurchase of the securities used as collateral.

Shares with which repo transactions are concluded

Shares with which repo transactions are concluded are approved depending on the market situation (price, liquidity, volatility).

Margin call announcements

In the event of a 15% decrease in the value of the collateral for repo transactions due to sharp market changes, clients receive a margin call notifying them that additional collateral must be provided. If such collateral is not provided, the process of selling the securities provided as collateral may begin.

Repo agreements