Bank of Russia Forex Regulation is approved – what is next?


The Russian financial supervisor has passed Forex standard rules. From now on, Russian Forex brokers will need to comply with new official Bank of Russia Forex Regulation framework.

2 May, AtoZForex Today, we witness the official start of the retail Forex regulations in Russia. The Financial supervisor of the Russian Forex market, the Bank of Russia has officially approved the basic standards for the financial operations across the markets.

Bank of Russia Forex Regulation

Specifically, starting from the 2nd of May, all the Forex brokers with regulations In Russia are able to advertise their products. Such news did not appear as the surprise since most of the brokers have been expecting the official enactment of the regime. The firms that are approved by the central Russian Bank will also need to become members of the unique officially approved self-regulatory organization, namely, the Association of Forex Dealers (AFD).

Additionally, the Deputy Chairman of the Bank of Russia Vladimir Chistyukhin has commented (translated from Russian):

“The adoption of basic Forex standards opens a new page in the regulation of financial markets. The application of the standards will allow unifying the order and timing of various operations. Moreover, it will prevent the occurrence of illegal actions against clients of financial organizations.

The approved standards will contribute to improving the quality of services provided by non-credit financial organizations. Finally, they will make the financial market more transparent and understandable for customers.”

Please find the original announcement from the Bank of Russia below .

Bank of Russia Forex Regulation Official announcement from the Bank of Russia (Click to zoom in)

What do Russian Forex Brokers think?

I have reached out to one of the Russian Forex brokers, Grand Capital. Sergey Kozlovsky, the head of the analytics department at Grand Capital, has commented on the latest Russian Forex developments:

“The fact that the Central Bank has approved the standards is undoubtedly making the time when Forex brokers are able to fully operate on the market much closer.

However, some questions remain unanswered, which enables us to have certain concerns about a completely transparent operation of retail Forex brokers.  For example, it is still unclear whether the mentioned brokers will be able to hedge clients’ trades.

The current version 460 of the Federal Law only allows entering signing contracts with individuals, so the brokers take all risks. The possibility of providing a transparent and honest service to clients will depend on whether the hedging is allowed or not.

Another question – 5-second delay in quotes. The requirement to keep the quote that existed at the moment one client placed a trade for other clients for the next 5 seconds can become a serious problem. How will the regulatory body solve this, is still very unclear.”

Moreover, Guzel Mirzeeva, the CEO of one of the Russian regulated brokers, Alpari, has stated:

“The official approval of the first basic standards for Forex dealers is a very important stage for the Russian retail Forex market. The Bank of Russia will be supervising the companies that are offering their services in Russia. Therefore defending clients from the actions of unscrupulous companies.”

The basic standards are establishing integrated rules for carrying out all of the financial operations in the Forex market. Moreover, all of the Forex brokers in Russia will need to comply with the Bank of Russia Forex Regulation rules.

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