Brokerage services

Acting as a broker, we accept transfers and/or executes buy/sell orders of securities, conclude deals with securities on behalf and at the expense of the customer.

Within the scope of brokerage services the Bank trades securities on behalf of the Bank and at the customer’s expense or on behalf of the customer and at the customer’s expense based on the customer’s orders as well as realizes other operations and activities related to the implementation of brokerage services.

The Bank provides Investment services according to the Rules for the Government securities issued by Republic of Armenia in the local currency that are freely circulating within the territory of Armenia.

HSBC Bank Armenia is a member of securities clearing system in the Central Depositary of Armenia. Please follow to the below link to find the rules of the Central Depositary of Armenia.

NASDAQ OMX Armenia - Depository Rules

Important note

The risk of investments on behalf and name of the Customer are fully carried by the Customer. The Bank is not responsible for covering the losses of the Customer if the losses are not resulting from the Bank’s inappropriate behaviour. The risk depends on the type of the investment that Customer decided to make, the investment country’s and company’s rating, currency, investment term, etc.

Rules on Brokerage Services in Securities Market (PDF, 405MB).

The tariffs on brokerage services are presented below and in the Investment Services_ Information booklet for legal entities.

Tariffs

Tariffs on Securities Brokerage Services – calculated on face value of securities

RA Government bonds
(Armenian Dram denominated)
Tariffs
Up to AMD 100 million 0.15% (min AMD 7000)
AMD 100 million and above 0.12% (min AMD 7000)
Provision of statements/ advices As per Bank tariffs

 

In case any minimal amount/quantity of securities, required for each order, is defined by Partners of HSBC Bank Armenia the same amount/quantity of securities should be included in the orders submitted by the Customer.

Investment services tariffs _ Information booklet for legal entities (PDF, 192KB).

General Terms

Service provision address

The brokerage services are being provided only by the authorized staff of Global Markets Department who provides Investment services (buying/selling of securities) within and on behalf of the Bank, accepts, transfers and processes Customer instructions. Global Markets Department location is Head office, 0009, Teryan 66 Street, Yerevan, RA. Also investment services related instructions can be presented by customers both in hard copy and via electronic communication means agreed with the Bank and set out in the investment Services relevant agreements.

Payment Conditions

The Customer undertakes to pay to the Bank commission fees for the Brokerage services hereunder in accordance with the Bank’s Tariff of Charges approved and published by the Bank effective at the moment of providing the Brokerage Services.

The Bank charges the commission fees, from the Customer’s AMD account upon executing customer instructions. Where no sufficient funds are available on the AMD account of the Customer, the Bank shall be entitled to debit the foreign currency account of the Customer with the amount to be charged, convert the foreign currency into AMD at the purchase rate of the Bank for the respective day, and only after that charge the respective amount.

The Bank shall have a right to change unilaterally the Tariff of Charges with at least 14 (fourteen) calendar day notice prior to applying the amended Tariffs to the Customer in the manner stipulated in the Rules.

The rules and timeframes for contacting the customers when accepting the instructions

When receiving investment orders and instructions from the customer, the timing and customer contacting terms are regulated by the Bank’s Brokerage and Custody Services Provision Rules.

The Instruction may be presented both in hard copy and electronically. The instruction is considered presented if it is submitted by the Customer or the authorized Person in hard copy, or is sent electronically initially agreed and specified in the Agreement.

The Customer Instruction is considered to be presented at the moment it is accepted by the Bank. The hard copy Instruction is considered to be accepted by the Bank when the Bank Responsible staff returns to the Customer the signed Instruction. The electronically presented Instruction is considered to be accepted by the Bank, at the moment the Bank sends the Customer a confirmation message stating the receipt of the Instruction.

The Instruction will be processed on the same business day if it is accepted by 14:00. If the implementation of the Instruction assumes transfer/deposit of resources (securities and monetary funds) to the technical account of Stock Exchange or CDA, then the Instruction is processed during the next business day.

The instruction, accepted by the Bank after 14:00, will be processed during the next working day.

Contract Period

Brokerage Agreement shall enter into force from the moment of its signing and shall be effective for indefinite period except of the case described in the Brokerage Rules in 4.7 paragraph as stated below

The Agreement shall be considered as terminated

  1. If the Customer has not performed any transaction by his/her Security account within uninterrupted twenty-four months and if these accounts are held with zero balance or
  2. in case of absence of Security accounts, If the Customer has not performed any Brokerage transaction within uninterrupted twenty-four months.

Place of Deals Execution

The Bank executes the deals:

  • In the RA Stock Exchange by presenting buy/sell offers during the trading hours in the Stock Exchange,
  • In RA Over the counter (OTC) market by presenting buy/sell offers out of Stock Exchange.

Conflicts of Interests

Provision of Statements and Reports

After execution of each security buy/sell transaction and before the end of the next working day the Bank presents the Customer a report (current report) on execution of the transaction via communication means initially agreed with the Customer: the reports shall comprise the information defined by RA legal acts and the Bank's Rules.

If the Customer’s Instruction is executed part by part, the Bank shall provide the Customer with reports on execution of the Instruction for each part.

The risks associated with transactions in the securities markets

The Bank provides Investment services according to the Rules for the Government securities issued by Republic of Armenia in the local currency that are freely circulating within the territory of Armenia.

The investments in securities are not guaranteed by the Deposit Guarantee Fund.

The Bank informs the Customer that each investment in securities bears a risk. While making transactions in the securities market the Investors are exposed to the following risks:

  • Market risk, which is the risk of changes in the prices of financial instruments. The market prices of the securities and their variations are out of the Bank’s control, due to which the Customer can lose in the value of the portfolio or even the whole portfolio if the former chooses to make investments in securities.
  • Liquidity Risk, which is associated with the risk of declining interest of other market participants to the given instrument. The liquidity of the given financial instrument depends on general market conditions, internal rules of Stock Exchanges and Trading Platforms, which can have a negative effect on the given financial instrument and correspondingly on the Customer portfolio.
  • Legislation changes risk. It is associated with actions taken by governmental organizations and other organizations regulating the markets due to which the Customer can incur losses.
  • Infrastructural risk. The risk is associated with workflow interruptions of depositories, stock exchanges, clearing organizations due to which the Customer can incur not refundable losses of assets (funds as well as securities).
  • Risks associated with electronic transfer of information. The Customers are being informed that investment activity bears risks associated with electronic nature of transfers such as, absence of reliable connectivity, possibility of problems with electricity or software, etc. The Bank bears no responsibility on the interruptions of electronic trade systems incurred by actions of third parties. The Bank also bears no responsibility if due to the actions of third parties the information transferred between the Bank and the Customer becomes accessible to third parties.
  • Other risks. Investment activity is not limited to the risks mentioned above. The investment service may be also associated with other risks.

Call us on:

+37460 655 000

Our phone lines are open 24/7

Last updated on: 22/11/19 18:47 UTC

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