Russia’s c-bank licenses VTB24 Forex, denies license to 24Option parent

Russia’s c-bank licenses VTB24 Forex, denies license to 24Option parent

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Russia’s central bank, which serves as a mega-regulator, announced it has granted a license to the forex brokering subsidiary of the bank VTB24 – VTB24 Forex and denied a license to Rodeler RU, the parent company of the 24Option binary options broker.

With the addition of VTB24 forex to the list of licensed forex brokers in Russia, their number grows to four. The other three are  TeleTradeTrustForex and Finam. Five were denied: Alpari, ForexClub, Profit Broker, InstaForex and DilFin.

As SMN already reported, VTB24 Forex was set up this spring and almost immediately applied for a forex license from the Bank of Russia. In July the head of the broker  Alexander Sokologorskiy said it was expecting a reply from the regulator shortly. Meanwhile, VTB24 Forex joined the self-regulatory organization (SRO) for over-the-counter (OTC) financial instruments National Association of the Forex Dealers (NAFD) (formerly CRFIN) and Sokologorskiy was elected member of the organization’s Board of directors.

In a separate announcement on its site, the Bank of Russia informed the public that it has not granted a license to the parent of the 24Option binary options broker – Rodeler RU. It is a subsidiary of the Cyprus-regulated company Rodeler, which also owns the binary options broker brands GrandOption and QuickOption and the forex brokerage 24FX.

Recently Rodeler has been in hot water with a number of European regulators. In August it was fined EUR 140 000 by Belgium’s regulator FSMA for not complying with local regulations. Earlier this summer 24Option was altogether banned by the FMA from operating in France. The reason was failure to comply with certain professional obligations.

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