Volume of complaints against Russian Forex dealers declines in Q1 2020

Maria Nikolova

The Central Bank of Russia registered a total of 293 complaints against participants in the securities market in the first quarter of 2020.

There were fewer complaints regarding Russian FX dealers in the first quarter of 2020, according to a report published by the Central Bank of Russia today.

During the first quarter of 2020, the Central Bank registered 293 complaints targeting participants in the securities market. This is down 4% from levels seen a year earlier.

The proportion of complaints against brokers rose (from 46% to 65% of the total), whereas the percentage fell for FX dealers (from 9% to 0.3%). Let’s note that, in 2019, among all of the complaints against professional market participants, the ones targeting FX dealers accounted for 4%. This compares with a proportion of 2.1% a year earlier.

It is worth noting that there are only four licensed Forex dealers, or OTC FX brokers, in Russia. Among them is PSB-Forex, which was put up for sale but the auction failed due to lack of bids. The small number of FX dealers partially explains the small number of complaints against them.

However, this does not mean that the Russian FX market lacks unauthorized firms targeting Russian investors. In October 2019, Russia’s Federal Financial Monitoring Service published a warning about a number of foreign entities that illegally offer online trading services to Russian investors.

Back to today’s stats, let’s note that there was a rise in the proportion of complaints concerning outages of the trading systems of brokers. There was also a rise in the number of complaints about forced closing of clients’ positions. The Central Bank concludes that the trading systems of the brokers were not prepared for the rise in client activity during periods of heightened volatility.

Read this next

Executive Moves

Avelacom appoints Timothy Wong to run newly Hong Kong office toward APAC expansion

Avelacom helps to achieve sub-millisecond speed of market data and order execution across both derivatives exchanges and crypto markets.

Executive Moves

XS.com hires Ahmed Negm, a popular market analyst on CNBC, Sky News, Bloomberg’s Asharq

“Ahmed’s expertise and passion for understanding the intricacies of the financial markets will be invaluable as we continue to grow our client base and expand into new jurisdictions.”

Institutional FX

ATFX uses blockchain to help clients verify IBs and vice versa

ATFX said it has been working on the IB verification project for a few months.

Industry News

Research market in dire straits as SEC’s ‘no-action’ letter on MiFID II lapses in June – survey

“Of all the regulatory news that has hit the research market in the last few months, this is the one change that will fundamentally impact what fund managers can access and pay for in future.”

Executive Moves

Wombat appoints ex-abrdn Richard Charnock as UK platform turns to Europe

Launched in 2019, Wombat provides a dedicated mobile investing platform – available on both iOS and Android – offering users both range and choice.

Institutional FX

Broadridge integrates Point Focal’s pre and post-market reports

“Point Focal provides a unique lens on the market which will help add alpha to the trading process and these new insights will rapidly improve performance while mitigating execution risk and simplify trading.”


XCritical integrates with Brokeree Solutions, allowing its clients to launch copy trading 

The forex software provider – XCritical, has integrated Social Trading by Brokeree Solutions into their CRM system.

Industry News

HKEX partners with Saudi exchange for cross listings, ESG, Fintech

“The Kingdom of Saudi Arabia, and the broader Middle Eastern region, are one of the world’s most dynamic and exciting economic and innovation hubs and also home to some of the fastest growing investor groups in the world. Hong Kong and HKEX’s markets offer significant opportunities for international investors and corporates, including unrivalled connectivity to the Mainland Chinese markets through our unique Connect programmes. This agreement signals the beginning of even greater collaboration between our companies and our home markets, and we look forward to exploring many future areas of cooperation.”

Executive Moves

CMC Markets Connect relocates APAC team led by Peter Foster to Singapore

“Singapore is a vibrant city and is now undoubtedly seen as Asia’s leading financial hub. The decision to bolster the CMC Markets Connect team here will help us cement the company’s position as a leading provider of multi asset liquidity and comprehensive trading solutions across the region.”