VTB24 Forex, a subsidiary of one of Russia’s largest banks – VTB24 – is expecting the reply of the country’s central bank on its application for a forex broker license. This is what Alexander Sokologorskiy, general manager of VTB 24 Forex, told the Russian-language site Forex Magnates.
“Currently we are expecting a reply from the Bank of Russia,” said Sokologorskiy. He also clarified that the application was made by the VTB24 forex brokerage subsidiary that was set up in March, and not by the VTB24 Bank itself.
As SMN reported earlier, VTB24 Bank was discussing the option to set up a subsidiary which would handle its forex brokering activities. VTB24 Forex was set up in March and on April 20 it filed its license application with the Bank of Russia. And in May Sokologorskiy himself became a member of the board of Russia’s self-regulatory organization (SRO) for over-the-counter (OTC) financial instruments CRFIN.
VTB24 is not the only Russian bank to set up a forex brokerage subsidiary. Alfa-Bank, the country’s largest privately-owned commercial bank announced in May its plans to set up a separate forex brokerage subsidiary and apply for a license. Another large bank – Sberbank – however, chose another path and teamed up with the Israeli forex broker and social trading platform developer eToro.
Meanwhile, the Bank of Russia is growing ever more reluctant to hand out forex licenses. Earlier this week it denied a license to the forex broker DilFin and in the beginning of June did the same with the country’s largest brokers Alpari and Forex Club.