Auction for Russian FX dealer PSB-Forex fails due to lack of bids
A Commission has determined that the online auction for the FX dealer has failed, due to lack of candidates to acquire the company.
As FinanceFeeds reported back in February 2020, Russian bank Promsvyazbank has been trying to sell its Forex trading subsidiary PSB-Forex. The FX dealer (the official designation of retail FX brokers in Russia) was put up for sale on an electronic auction platform by its parent on February 21, 2020.
Today, the Commission responsible for the auction published a report on the progress of the process. Registrations for the auction process were accepted by March 18, 2020. The Commission concluded that the auction had failed due to lack of candidates to acquire the brokerage.
The notice on the platform says that 100% of the capital of PSB-Forex was offered for sale, with the start price being RUB 149 million (USD 1.84 million). The nominal value was put at RUB 294,776,142.
In September 2019, the Association of Forex Dealers (AFD), the self-regulatory organization for Russia’s OTC FX sector, announced the sanctioning of PSB-Forex. The company was reprimanded due to its violation of the Internal Standards for conducting checks, the Association said.
PSB-Forex is one of the handful of firms that have Forex dealer licenses in Russia. In December 2018, the Central Bank of Russia took away the licenses of some of the major players in the Russian retail Forex scene, including Alpari, Forex Club and TeleTrade. In its official announcement back then, the Central Bank explained that the licenses of five companies – Forex Club, Alpari Forex, Trustforex, Fix Trade, and TeleTrade Group, were annulled due to violations of the Russian law by the brokers.
The Central Bank of Russia granted Forex dealer license to PSB-Forex, a Promsvyazbank company, back in April 2017. The move was seen to strengthen the presence of Russian banks in the FX market.
