The National bank of Belarus published a decree, setting the rules for the minimum capital of forex brokers, reports the Belarusian Association for development of the financial markets (ARFIN).
The document established the minimum size of the required margin capital at 50% and determines that a security capital is formed and replenished by the forex companies (legal entities, registered in Belarus, having capital of at least 2 billion Belarusian rubles (around $93 000) and included in the National bank’s forex companies register) into an account in the National forex center and used as a collateral.
“This resolution of the National Bank requires that 50% of all funds are credited to the broker as a margin collateral and are placed in a special account at the bank. This is necessary so that the company is able to meet its obligations to customers and pay money back on demand. I must add that those are not the only regulatory requirements to ensure customer safety. Additional regulations and requirements limiting the risk, will also be applied and a special fund will be set up”, said Eugene Mandrusov, Chairman of ARFIN.
He explained that the special account would be opened with a contract between the forex broker or the National forex center and a bank or a non-bank financial institution in Belarus. “Those funds cannot be used by the forex company, unless they are needed for fulfilling obligations to the client (withdrawals) or to the regulator (minimum required capital)”, added Mandrusov.
The new requirement comes into effect on March 7, 2016 and is based on the Presidential decree No. 231 on the implementation of activities in the OTC forex market from June 2015.