Forex dealers were first allowed to legally provide services in Russia

The Bank of Russia on Wednesday, 12 October, decided to include an Association of Forex dealers (AFD) in the unified register of self-regulating organizations (SRO) in the sphere of the financial market and gave it the appropriate status, is spoken in the message of the Central Bank. The members of this Association will be the first domestic dealers who will be able to provide services on the international currency market by the Russian legislation.

In 2014, the Bank of Russia adopted the law on the Forex dealers, according to which from 1 January 2016, all the participants in this market must obtain a license and to create a self-regulatory organization and guarantee Fund.

Since the end of the 2015 license got five companies “Forex Club”, “VTB 24 Forex”, “Finam Forex” “Broker group”, “Trastforeks”. But without SRO Forex office, even licensed by the Central Bank, could not offer services in the Russian market. Thus, the emergence of the first Association with this status will allow Forex dealers to begin full-fledged work in Russia.

The assumption of a January 1 new requirements for Forex firms has forced some of them to curtail their activities. However, the majority continued to work. By law to obtain a license of the Central Bank should only companies registered in Russia. But most of the largest Forex firms registered abroad. Therefore, the lack of licenses does not affect: the Russian legislation they are not subject to and does not prohibit citizens to open accounts with foreign Forex dealers. True, they can’t advertise their services in Russia, all disputes must be solved outside of Russian law.

According to “Interfax-CEA”, at the end of 2015, 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).

The appearance of the first self-regulatory organization — the next step in the development of a civilized market in Russia, say market participants. As the General Director of “Teletrade group” Andrey Rybin, the new status of the Association of Forex dealers will allow its members to continue joint development of standards activities of the Forex dealers as a new kind of professional market participants of securities in Russia.

“I hope that after approval of base standards can proceed to a full services of a Forex dealer in accordance with the Russian legislation”, — agrees the General Director “Finam Forex” Jaroslav Dyusuche. He added that, according to the law, each member of the SRO also must pay into the guarantee Fund of 2 million rubles, only then he will be able to provide services.

The composition of the AFD includes three licensed companies: “Finam Forex” (part of the group of companies “Finam”), “Broker group” and “Trastforeks”. National Association of Forex dealers (NATD) going in two weeks to apply to the Bank of Russia about the entry into the registry, said the President NAFD Andrey Lisitsyn.

“Recognition Association of Forex dealers (AFD) as a SRO will allow to create a regulated market in the country,” — explains the head of the AFD Eugene Masharov.

Previously, the Central Bank refused to issue a license of a Forex dealer “Forex Club” and “Alpari”. As a result, in the environment of “Forex Club” it received. As the official representative of Alpari Andrey Loboda, the company “Alpari Forex” expects to receive a response to the Bank of Russia filed an application for a license in the near future.