Capital TRUST Credit introduces margin trading

Licensed margin trading provider Capital TRUST Credit (Pvt) Ltd, which commenced business in March has had a successful start with the company activating over 500 new margin trading accounts in the first week of operations.

Margin trading allows stock market investors to pledge their share portfolios to obtain credit facilities for the purpose of purchasing more shares.

"We normally approve and activate margin trading facilities to investors - irrespective of their portfolio size, in just 30 minutes", said Director, Capital TRUST, Credit Methmal Seneviratne.Capital TRUST Credit has been able to cope with the large number of clients due to its state-of-the-art margin trading system developed by Capital TRUST Information Technologies (Pvt) Ltd.

The system is integrated with the back office system of Capital TRUST Securities (Pvt) Ltd. and fully automated enabling investment advisors and clients to view their Loan Account Statements, Portfolio Valuation Statements, Interest Account Statements, Margin Status Reports and other information.

The online facility provides timely and accurate information, transparently. "Our primary aim is to serve small retail clients with portfolios valued at less than Rs. 1 million, who are often not accepted by other financial institutions, so they could continue trading with credit facilities even after the deadline set by authorities," said Director, Capital TRUST Credit Tushan Wickramasinghe.

Capital TRUST Information Technologies (Pvt) Ltd., has also provided the margin trading system free to six other companies associated with Capital TRUST Securities (Pvt) Ltd.