Company: FRHC
Filing Date: 2025-06-13
Form Type: 10-K
Source: 0000924805-25-000012
Chunk: 3

Company: Freedom Holding Corp.
Filing Date: 2025-06-13
Form: 10-K
Item: Item 7A
Chunk 3
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 debt65,860 — — 65,860 Total held-to-maturity securities$65,860 $— $— $65,860 Total investment securities$2,629,743 $133,460 $51,530 $2,814,733 

March 31, 2024>BB<BBNot ratedTotalNon-U.S. sovereign debt$2,399,328 $9,258 $540 $2,409,126 Corporate debt988,374 99,627 20,869 1,108,870 Corporate equity88,787 855 36,461 126,103 U.S. sovereign debt43,173 — — 43,173 Exchange traded notes57 — 1,291 1,348 Total trading securities$3,519,719 $109,740 $59,161 $3,688,620 Corporate debt125,648 47,729 191 173,568 Non-US sovereign debt26,450 566 — 27,016 US sovereign debt16,037 — — 16,037 Total available-for-sale securities, at fair value$168,135 $48,295 $191 $216,621 Total investment securities$3,687,854 $158,035 $59,352 $3,905,241 

Margin lending receivables risk

We extend margin loans to our customers. Margin lending is subject to various regulatory requirements of MiFID, the AFSA and the NBK. Margin loans are collateralized by cash and securities in the customers' accounts. The risks associated with margin lending increase during periods of fast market movements, or in cases where collateral is concentrated and market movements occur. During such times, customers who utilize margin loans and who have collateralized their obligations with securities may find that the securities have a rapidly depreciating value and may not be sufficient to cover their obligations in the event of a liquidation. We are also exposed to credit risk when our customers execute transactions, such as short sales of equities that can expose them to risk beyond their invested capital.

We expect this kind of exposure to increase with the growth of our overall business. Because we indemnify and hold harmless our clearing houses and counterparties from certain liabilities or claims, the use of margin loans and short sales may expose us to significant off-balance-sheet risk in the event