Russian Government Going Strict on Forex Brokerage Firms

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Coin One Rouble The Central Bank Of Russia On A Black Background

The second vote on the forex regulation bill will imply restrictions on advertising and maximum leverages in Russia

ForexMinute.com – First Deputy Governor of the Russian Central Bank Serguey Shvetsov is all set to speed up the forex regulation bill that will limit the maximum leverages offered by the forex brokerage companies to 50:1, whilst also will scrutinize their advertising practices. The man has announced the fair-shake of a second vote on the bill in Russian Parliament.

Mr. Shvetsov has been in a long-run to enforce a law that may limit, or eliminate, the possibilities of fake-sales in forex market. As per him, putting substantial restrictions on forex brokerage firms in Russia can save traders from falling into a glossy trap. Moreover, the forex regulation bill can also bring those fraudsters individuals/firms before the law that make groundless claims, like bringing “easy money” and “high returns” to clients.

However, the regulatory bodies are unsure of settling a maximum limit on the leverages, as suggested by Mr. Shvetsov. He, on the other hand, has exemplified the European regulators that, quite parallel, are looking to set a cap of 50:1 on leverages. He has also mentioned to impose specific rules on pairs that are tangled with the market volatility.

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A translated version of Mr. Shvetsov’s statement can be read as follows: “Likewise European regulators, who have set 50:1 as the maximum cap on leverages, we can also impose the same on our forex brokerage firms. We may also introduce certain restrictions on specific (currency) pairs depending on the volatility. Perhaps during the second reading of the law, this idea will also be discussed,” said he.

The bill will though need the CRFIN members to introduce a proper technology that can monitor leverage caps of the domestic brokers in Russia. Once the technology pave the way, foreign brokerage firms will have to methodize their services in order to continue their operations in Russia.

To contact the reporter of the story: Jonathan Millet at john@forexminute.com