The Central Bank of Russia (CBR) said on Thursday it has denied forex broker license to DilFin Forex. The regulator provided no details.
No information about the broker was immediately available.
As of 1 January, 2016, Russia requires locally-based forex brokers to obtain a license from the CBR in order to operate in the country. However, foreign brokers are still allowed to target local citizens without any significant restrictions and most market participant continue to do business in the country through their foreign units.
In early June, the CBR refused license to Alpari and Forex Club – the two largest forex brokers in the country by trading volume and clients. The regulator did not explain its decision at the time, neither did it provide an explanation as to why it turned down DilFin Forex’s license application. The bank has also denied forex license to Profit Broker.
There are only three brokers licensed by the CBR as forex trading service providers – Finam Forex, TeleTrade, and TrustForex. Although many other forex brokers have applied for Russian license in late 2015 and in the beginning of 2016, the CBR has been taking its time and delaying its response. By law, it has to come up with a decision within 60 business days of receiving an application, but it takes it several months for announcing a decision. The reason for the delays is not clear.
As a prerequisite for obtaining a Russian license, forex brokers need to participate in a self-regulatory organization (SRO) with at least 10 members. In order to oversee such organizations, the CBR recently launched a register with SROs and has already included several organizations in it.