Russian self-regulatory organization (SRO) for over-the-counter (OTC) financial instruments CRFIN said on Wednesday its representative board has expanded with officials from the banking segment of the forex market. The move is one step closer to obtaining a SRO registration with the Central Bank of Russia (CBR) and is based on the centрal bank’s recommendation, the organization said.
The new additions to CRFIN’s representative board are Alexander Sokologorskiy, general manager of VTB 24 Forex, Andrey Zorin, senior vice president of banking regulation at AlfaBank, and Alexander Voznesensky, who, since January this year, serves as CRFIN’s executive director, and now has been appointed as board chairman.
CRFIN has also discontinued the membership of TeleTrade Group on its own request, in addition to Profit Broker and Romanov Capital, both of which were excluded for repeated non-payment of membership contributions. As a result, the officials of TeleTrade Group and Profir Broker have been excluded from CRFIN’s representative board.
The organization has also changed its Articles of association, as requested by the CBR.
CRFIN, or Centre for Regulation in OTC Financial Instruments and Technologies, was set up in late 2010. It has disciplinary and control commissions which supervise and regulate its members, all of which are Russian forex brokers.
In mid-March this year, the Russian central bank, which is in charge of the forex regulation in the country, decided to set up a register of all SROs in the country and to include several existing ones. One of the reasons for this is that all local licensed forex broers are required to join a SRO with at least 10 participants.
The CBR’s move is in line with the recently-introduced and on-going changes in the legislatory framework for the local forex market. As of 1 January this year, Russia-based forex brokers are not allowed to target local citizens, unless they are CBR-licensed. Currently there are four licensed brokers – Finam Forex, TeleTrade, and TrustForex, while the two largest ones, Alpari and Forex Club, were denied license. owever, foreign forex brokers can still target Russian citizens even without a local license.