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TrustForex, a forex broker that recently got its license from Russia’s central bank, has joined the newly-established self-regulatory organization (SRO) Forex Dealers Association (AFD).
According to a report of the Forex Magnates Russian-language site, at its meeting in Moscow the AFD board decided to accept the application of TrustForex. Now the AFD, which recently applied for a license from the Bank of Russia, has two members – Finam Forex, which was the first Russian-based forex broker to receive a license and is the founding member of the organization, and TrustForex.
If the AFD obtains a registration, it would become the first forex SRO in Russia to do so. Another similar entity, the SRO for over-the-counter (OTC) financial instruments CRFIN still has not applied. Until very recently neither of its members had a forex broker license from Bank of Russia and henceforth the CRFIN could not apply for registration with the megaregulator. Last week, however, one of its members – TeleTrade – got a license and this opens the door for the SRO.
At the same time, the Vedomosti newspaper reported that the draft № 928614-6, amending several Russian federal laws, including that on the self-regulation of the financial markets, has been tabled for second reading in Russia’s State Duma (the lower chamber of parliament). According to earlier reports, the amendments would allow the Bank of Russia to block access to to the websites of unlicensed forex brokers.
It seems that the eventual blocking of sites is welcomed by the AFD. According to the SRO’s chairperson Evgeniy Masharov, quoted by Vedomosti, they are supporting the proposal. What is bothering them are the draft proposals for dividing the forex broker’s clients into three categories: professional, qualified and unqualified and banning doing business with unqualified forex traders altogether.
Meanwhile, the Russian Kommersant daily reported that a third forex SRO might appear and it would consist of the forex broker subsidiaries of major Russian banks. So far at least two of them – VTB 24 and Alfa-Bank – have discussed the setting up of such subsidiaries and applying for a forex brokerage license from the Bank of Russia.