The restructuring of the Russian FX industry has been an issue of priority to the financial authorities of the state as the Russian Forex bill was passed into Law in December. This has elevated the self-regulatory body “Centre for Regulation in OTC Financial Instruments and Technologies” (CRFIN) to a position of higher responsibility in ensuring that Forex brokers and traders alike abide by the laid down standards of operations set by the Central bank.
Brokers will now be required to have the minimum capital of 100 Million Ruble and the maximum leverage available will be set at 1:50 (with the Central Bank maintaining the right to set 1:100 on certain instruments) are amongst rules established in the FX bill. There have been great concerns among traders upon the newly imposed 1:50 leverage limit. Therefore prompting the CRFIN to coordinate a survey, enquiring from traders their level of satisfaction with the rule.
It comes as no surprise that the vast majority of traders considers the rule to be extremely harsh, with the majority supporting 1:500. Here’s a comprehensive breakdown of the opinion polls;
- A mere 6% supports 1:50 leverage limit
- 25% supports 1:100 as maximum leverage
- 26% supports 1:200 as maximum leverage
- 30% supports 1:500 as maximum leverage
In a survey that involved about 1,500 participants, 47% of the respondents are of the opinion that leverage should be left to individuals’ discretion and not restricted by regulatory processes. The law is scheduled to take effect on the 1st of October, 2015.