Broker Cluj has conducted forward exchange transactions worth 114 million euros over the past six months, according to Petru Prunea, chairman of the brokerage.
On the Stock Exchange, Broker in the first 9 months of this year handled transactions worth almost 750 million euros. Broker launched the forward trading services in late March, being the first securities firm to offer its customers the possibility of operating forward exchange transactions. Broker trades on the forex market on behalf of its customers through a bank. Prunea was unwilling to disclose the name of the respective bank.
"We are satisfied with how this service has been going so far. We have 6 customers currently and transactions conducted until now stand at 114 million euros. The main advantage we are offering our customers is the possibility of trading sums below the level of those required by banks," stated Prunea.
The forex market has no rules in place to set limits on the capital needed to carry out forward exchange transactions, with banks being able to adopt specific policies.
Nonetheless, in the case of speculative operations, banks as a rule require sums above the level of 100,000 euros.
As regards hedging operations carried by economic operators seeking protection from the unfavourable foreign exchange fluctuations, the required sums are usually smaller.
"Our customers conduct only speculative trades. These operations are done by experienced investors. We only serve as intermediaries and we do not advise them when they place their orders," specified Prunea.
He estimates Broker will be able to add at least another 5 customers for forward transactions by yearend. "We have neither the time, nor the necessary people to go looking for customers; instead we wait for customers to come to us (...)," says Broker chairman.
The customers of the broke
