Municipal Bank PLC provides access to bill and bond trading on foreign regulated markets (in the USA and Europe), and carries out deals with Bulgarian global bonds on the international markets.
General documents:
- General terms and conditions applicable to contracts with customers of Municipal Bank PLC’s investments services and financial instrument activities;
- Policy of Municipal Bank PLC for execution of customer orders when acting as an investment intermediary;
- Other documents (supplied on site).
Fees and commissions apply in accordance with the Bank’s Tariff in force.
Entry into contracts, placing orders or making requests, as well as any other legal action on behalf of and at the expense of the customer through an attorney are permissible only if a notarized Power of Attorney is presented containing the representative power for management and/or disposal of financial instruments, together with a declaration by the attorney that the attorney does not carry out deals in financial instruments by occupation.
In execution of Art. 10 of Financial Supervision Commission Ordinance 38 on the Requirements for the Operation of Investment Intermediaries and for existing and potential customers to make an informed investment decision Municipal Bank PLC provides a description of the type and nature of the financial instruments offered and traded by Municipal Bank PLC as an investment intermediary and the risks associated with them.
It should be taken into account that investing in financial instruments may bring additional risks to the investor stemming from unforeseen changes to the economic and market environment, and the investor assuming financial and other additional liabilities as a result of financial instrument deals including incidental liabilities on top of the costs for acquiring the specific financial instruments.
Investing in financial instruments also bears the risk of losing the entire investment made.
Risk in trading on foreign markets
The main risks associated with investments in bills and bonds traded on foreign regulated markets are: market, liquidity, currency, and issuer risk.
The market risk for bills and bonds is related to a negative change in the market interest rates against the fixed or floating rate debt securities. The bills (short-term) are associated with lower risk, while bonds (long term) are related to higher risk.
The liquidity risk for bills and bonds is related to the risk of delay or impossibility for sale of the debt instruments held by the investor. The liquidity risk in this type of financial instrument is decreased by the larger volume debt issues traded on the foreign markets as compared against those in the country.
The currency risk for bills and bonds depends on the movement of the exchange rates.
The issuer risk is related to the possibility of the issuer to fall into financial difficulty and not be able to repay the principal and interests due under the bond issue.