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Russia’s financial megaregulator, the Bank of Russia has denied forex broker license to the two largest forex brokers in terms of trading volume in 2015 in the country – Alpari and ForexClub.
In two separate official statements with identical wording on its site, dated June 2, the central bank said it has decided to deny license for professional participant in the stock market and activities as forex dealer of Alpari Forex Ltd. (Moscow) and Forex Club Ltd. (Moscow).
According to a statement with title “Alpari is at the final stages of obtaining forex license from Bank of Russia” on Alpari’s Russian-language site, the company claims the regulator has some further questions regarding the broker’s technical procedures. “Alpari will receive the official questions and remarks shortly and, taking them into consideration, will apply for a forex license once again shortly,” the statement reads. “We are expecting to obtain one in the third quarter of this year.”
ForexClub has not issued an official statement on the matter, but told the Russian-language site Forex Magnates that it will acquaint itself with central bank’s remarks and questions and will apply once again for a license.
By law, as of the start of this year, the forex brokers based in Russia must have a forex broker license from the Bank of Russia. So far it has licensed three companies – Finam Forex, TrustForex and Teletrade.
Alpari and ForexClub have applied for a license in the end of last year. As required by law, both are members of a self-regulatory organization (SRO) – CRFIN, but neither of its members have a forex broker license. Moreover, it seems that the Bank of Russia is systematically denying licensing to its members, as Profit Broker, also a member of the CRFIN, did not get registration either. Meanwhile, the central bank is licensing the forex brokers who are members of another SRO – AFD.