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New equity rating model

On 2016 september 12th the new equity rating model will be introduced. New model provides continuous daily assessment (and potential re-ratings). The model is relatively simple and straightforward, building on the following factors: Market Capitalisation (Large, Mid or Small) Volatility (Low, Moderate, High or Extreme) Credit Rating (Excellent, Good, Regular or Poor) Gap tendency (Negligible, Marginal, Critical or Catastrophic) Liquidity (High, Medium or Low). Currently used 8 categories will be simplified to 5 (see table below): 

Rating Margin Collateral
1 10% 75%
2 20% 50%
3 40% 25%
4 80% 0%
5 100% 0%

See affected instruments list in pdf format.

What instruments are affected? Stocks, ETFs, CFD stocks, CFD ETFs

Why it is important? If you have open positions in equity and/or margin instruments your margin utilization might change drastically once new equity rating model takes effect. Please evaluate your portflio and make sure you will have enough collateral to cover your margin requirements. Otherwise stop out will be executed and all your open positions closed.

Please note that this change does not affect CFD indices, CFD commodities and Forex CFD.

If you do have any question, contact DNB Trade by phone: +370 239 36 31 or email: trade@dnb.lt

Mangirdas Dargužis
Thursday, September 8, 2016 - 19:00