Forex dealers will be able to legally work in Russia

The Bank of Russia on Tuesday, 2 may, approved the first basic standard of work in the financial market. This document sets out the common rules of transactions for Forex dealers and gives you the opportunity to legally provide services of Forex in Russia. As noted in the comments of the Deputy Chairman of the Bank of Russia Vladimir Chistochina, the application of this standard will “to unify the order and timing of the various operations to prevent the misconduct in respect of customers of financial institutions, and to improve the quality of services provided by non-Bank financial institutions”.

According to the law “About the Forex dealers”, as from 1 January 2016, all the participants in this market had to obtain a license (as did “Forex Club”, “VTB24 Forex”, “Finam Forex” “Broker group”, “Trastforeks”, “Alpari Forex”, “Fixed trade”), and to engage in self-regulatory organization (SRO). In order to begin work on the territory of Russian Forex dealers must also implement the standards. Without formally implementing activities in the framework of the law was impossible.

According to “Interfax-CEA”, at the end of 2015 (latest market research Forex dealers) about 460 thousand individuals used the services of Forex dealers, and their total average monthly turnover in 2015 was about $330 billion the share of the three largest dealers (Alpari Forex Club and TeleTrade) accounted for 60% of the active clients (278 thousand) and 57% of total turnover ($189 billion). Thus the basic volume of transactions in the market accounted for by foreign companies. As previously mentioned , after the entry into force of the law “About Forex trading” a number of participants suspended the activities of Russian troops and transferred the service of Russian customers in their foreign structure. For example, Alfa-Bank opens Forex accounts to clients through the Cyprus Alfa Capital Holdings, which operates under the brand of Alfa Forex, the market leader in Alpari serves clients through Alpari Limited (Saint Vincent and the Grenadines).

As noted by the head of the Association of Forex dealers (AFD) Eugene Masharov, with the introduction of standards of the Russian Forex dealers will be able to work with Russian clients. Customers will have the opportunity to receive guaranteed funds from the accounts, and the ability to defend their interests in Russian courts. “The adoption of a basic standard will make the business more transparent and controllable by the Central Bank of the Russian Federation, which will be in the interests of the customers and will more effectively combat unfair practices in the market”, β€” adds the Director “Alpari Forex” Guzel Mirzaeva.

Forex dealers will be able to start work in ten days, if before that time they will agree with the regulator the relevant framework contract, experts explain.

Market participants are actively preparing for work in a new segment. “We are in active preparation, check and test all client services, planned marketing of the company”, β€” said Deputy General Director of “Finam” Yaroslav Dyusuche. However, to give a qualitative assessment of how exactly the Forex dealers are going to increase their customer base in Russia, market participants are not yet ready. Of the companies surveyed only “Finam” announced their plans: “the Primary goal is to reach the target of more than 1 thousand new customers a month.” “The main thing now β€”to start and start working, and later need to align the remaining standards, to improve and simplify the conditions of work with individuals, such as remote account opening, it is already implemented to the brokers and examines the banks,” explained Dyusuche.

The Director of “Alpari Forex” noted that the Forex dealers look forward to the adoption of three basic standards (according to the law “On self-regulating organizations in the sphere of the financial market”): risk management, corporate governance, protection of rights and interests of consumers of financial services.

“Trastforeks” and “Teletrade group” declined to comment. Comments of “Fixed Trade” could not be obtained.