New rules for Russian FX dealers to come into effect on April 1, 2019

Maria Nikolova

The new rules, which are approved by the Central Bank of Russia, aim to protect clients of the Forex dealers.

The Association of Forex dealers, which represents the Forex industry in Russia, reminds its members and the public that a raft of new requirements for Russian FX dealers are set to become effective on April 1, 2019.

These new requirements, also known as the Basic Standard, were approved by the Central Bank of Russia on January 10, 2019. The requirements that will get into force on April 1, 2019, govern the provision of information by Forex dealers to their clients.

A Forex dealer will have to publish on its website about its name (full name and abbreviations, if any), membership in a self-regulatory organization, who its agents are, as well as its policy for paying compensations in case of bankruptcy. Forex dealers will also have to provide information about how a client may complain.

The new standards stress the importance of informing customers about the risks associated with entering into a contract, including the risks of losses or expenses related to meeting contract obligations. All the information has to be made clear for all types of clients, even for ones without any special knowledge of financial markets.

Forex dealers will not have to use any illicit practices, such as unfounded widening of spreads when the market situation does not necessitate such a change.

Furthermore, the basic standards include requirements for the timing of reviewing of complaints by clients of the companies. Specifically, a Forex dealer has to review a complaint within 15 days after its receipt. This period may be extended to 30 days in case the matter needs extra scrutiny.

The basic standards are obligatory for all Forex dealers and for their agents. In case an agent is noncompliant with these standards, the respective FX dealer will be responsible for the rule breach.

The Central Bank of Russia published the basic standards shortly after it announced the annulment of the Forex dealer licenses of five companies – Forex Club, Alpari Forex, Trustforex, Fix Trade, and TeleTrade Group. The licenses were taken away due to violations of the Russian law by the brokers.

Read this next

Digital Assets

Europe bans crypto payments to Russians as €10K cap scrapped

The European Union is taking further steps to sanction Russia after the recent developments surrounding its invasion of Ukraine.

Digital Assets

Mt. Gox creditors to get their funds through Bitstamp, other exchanges

The distribution of funds to creditors of the defunct crypto exchange Mt. Gox is set to kick off as the business’s Japanese bankruptcy trustee released a memo updating them of a new function and important deadlines.

Institutional FX

Tradeweb’s trading volumes hit $1.20 trillion per day in September

Tradeweb Markets, the online fixed-income trading platform, today reported its operational metrics for the month of September 2022, which has seen continued strong trading volumes so far. A frenzy that, at this pace, puts it on track to set a new record.

Crypto Insider

Cryptocurrency Spoofing: Why Should Investors Care About It?

Investors don’t just care about making more money. They care about their safety and security, too. This is observable in cryptocurrency, where consumers always protect their financial interests. People have developed this habit of fear of falling victim to possible scams and frauds.

Retail FX

FSCS closes London Capital & Finance (LCF) scandal after three years

The Financial Services Compensation Scheme (FSCS) has provided a final date for closing the scheme to compensate investors who lost money in the London Capital & Finance scandal, namely on 31 October 2022.

Institutional FX

Cboe reports highest ADV for FX volume in two years

Cboe’s institutional spot FX platform today announced its trading volume for the month ending September 2022, which marks its third-highest month ever.

Executive Moves

Investall hires ex-DriveWealth Steve Cortright as CEO

Investall is an AI-driven mobile trading platform for personal finance and investing that delivers AI-driven trading for thousands of equities and major cryptocurrencies.

Digital Assets

SIX integrates CryptoCompare’s cryptocurrency data feed

SIX will provide digital asset data to its clients via the same delivery channels as its leading reference, pricing, corporate actions, regulatory, tax and ESG data.

Digital Assets

CME Group to launch reference rates and indices on Avalanche (AVAX), Filecoin (FIL), and Tezos (XTZ)

Several leading crypto exchanges and trading platforms will provide pricing data for these new benchmarks, starting initially with Bitstamp, Coinbase, Gemini, itBit, Kraken, and LMAX Digital.

<