The Central Bank refused to issue a license of a Forex dealer companies “Alpari Forex” and “Forex Club”. This decision of the Central Bank published on its website. According to Interfax-CEA, Alpari is the leader in this market and ranks first in terms of turnover and the number of active clients. By the end of 2015, the company’s clients were 137 thousand, its average monthly turnover amounted to $90 billion Now Alpari serves its clients through an offshore structure Alpari Limited (Saint Vincent and the Grenadines).
In “Alpari Forex” told that the Bank had the notes to the company’s “technical character”. “In the near future, the company will receive from the Central Bank’s official list of observations and questions. Alpari will take into account the wishes of the mega-regulator and will soon submit a new application for a license,” — said the official representative of the company Andrey Loboda. According to him, Alpari expects to obtain a license of a Forex dealer in the 3rd quarter of 2016. The application for the license, the company filed December 15, 2015.
“Forex Club”, according to Interfax-CEA, the 2015 ranked second in the number of active customers (80 thousand people) in the Russian Forex market. The average monthly trading volume of the company in the Forex market was $54 billion.
“We are working to resolve the formal comments of the Central Bank and submit a repeated application for the license,” — said the official representative of “Forex Club” Ivan Klyuev.
The Central Bank declined to comment on the reasons for the refusal, but did confirm that market participants have the right to apply again.
Previously, the regulator refused to grant a license to the company Profit Broker. Causes of failure were also not disclosed.
The presence of Russian license of a Forex dealer should companies working in this market, to be eligible to provide services for currency trading individuals. Such are the demands of the new law on the Forex market, which came into force in October 2015. To date, the Bank of Russia has issued only three licenses for activities of Forex dealer: the first — in December of last year — got right to work in this market, “Finam Forex”, and in may, the Central Bank allowed the Teletrade Group” and “Trastforeks”.
Apart from the fact that the Forex dealers must obtain a license, they need to join SRO and create a compensation Fund.
A number of market participants who have not received a license of the Central Bank, curtailed their activities. So at the end of December 2015 “nefteprombank” announced the termination of service of individual clients in the Forex market with the provision of “leverage”. Customers are suggested to close all open positions and remove pending orders. According to “Interfax-CEA”, at the end of 2014, the Bank occupied the 11th place in the ranking of Forex dealers according to the number of active customers, its average speed was estimated at $5.65 billion
Some market participants tried to reclassify their activities. In particular, VTB24 figured out how to continue to provide public services on the Forex market, after the law require all Forex dealers to obtain a special license. The Bank started to issue customer agreement on conversion operations.
The majority of companies continued to provide services to citizens using its offshore structures. For example, Alfa-Bank opens Forex accounts to clients through the Cyprus Alfa Capital Holdings, which operates under the brand Alfa Forex. Directly the law is not prohibited, however, to advertise their activities, such companies in Russia are not eligible.
According to Interfax — CEA, the clients of Forex dealers in Russia are around 460 thousand, while their total average monthly turnover in 2015 was about $330 billion compared to the 2014 year the total volume of individuals ‘ transactions on the Forex market in 2015 decreased by about 5% due to the crisis situation in the Russian economy. The share of the three largest Forex dealers account for 60% of active clients (278 thousand persons) and 57% of total market turnover ($189 billion).