Russian FX Dealer PSB-Forex to Voluntarily Revoke its Licence
- The subsidiary of government-owned Promsvyazbank will submit its application with the central bank.
There is about to be one less player in the Russian foreign exchange (forex) market as Promsvyazbank, an FX dealer, is preparing to submit an application to the country’s central bank to voluntarily revoke the licence of PSB-Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term LLC.
On Wednesday PSB-Forex, the FX subsidiary of Promsvyazbank, said in a statement that it would be terminating its activities after less than four years of operations, which have been plagued with weak financial performance.
PSB-Forex Struggled since the Beginning
The announcement from PSB-Forex follows after three and a half years of operations, with the broker losing money ever since commencing its operations and only a small active trader client base.
In fact, in its full-year 2019 financial statement, the company’s auditor gave them a going concern warning because of the continued losses. So, the fact that the forex dealer is going to revoke its licence is not completely unexpected.
Russia’s FX Market Shrinks Even Further
Once PSB-Forex stops operating in Russia’s FX market that will bring the number of licensed forex dealers down to three. All of the remaining players are part of larger banking groups.
In a statement on its website, the FX dealer said on Wednesday (translated): “PSB-Forex LLC hereby notifies of the decision taken by the Sole Participant of PJSC Promsvyazbank to refuse to carry out the activities of a forex dealer.
“At present, PSB-Forex LLC is preparing to submit an application to the Bank of Russia for the voluntary cancellation of the Bank of Russia license to operate a forex dealer. We ask you, by September 30, 2020, to send LLC PSB-Forex a written Notice of termination of the Framework Agreement.”
With the deadline set for 30th September 2020, clients need to close all of their open positions before the day of its termination and no later than five working days before the expected date of termination.
“If you fail to fulfill the above Obligations Obligations In finance, an obligation is a financial responsibility where the terms of a contract must be met. Should an obligation between parties fail then the party who is at default may face legal action. In this scenario, the guilty party will not only have to agree to pay the set amount to fulfill the contractual arrangement but may also be responsible for covering all legal proceedings cost. Routine payments or outstanding debt of any kind are considered financial obligations, so if someone owes you In finance, an obligation is a financial responsibility where the terms of a contract must be met. Should an obligation between parties fail then the party who is at default may face legal action. In this scenario, the guilty party will not only have to agree to pay the set amount to fulfill the contractual arrangement but may also be responsible for covering all legal proceedings cost. Routine payments or outstanding debt of any kind are considered financial obligations, so if someone owes you Read this Term, the written 'Notice of termination of the Framework Agreement' received from you is recognized as an application to close all open positions and an order to withdraw funds from a special section of the client's nominal account to the bank account specified by the client in the Framework Agreement,” representatives of the subsidiary of Promsvyazbank added.
There is about to be one less player in the Russian foreign exchange (forex) market as Promsvyazbank, an FX dealer, is preparing to submit an application to the country’s central bank to voluntarily revoke the licence of PSB-Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term LLC.
On Wednesday PSB-Forex, the FX subsidiary of Promsvyazbank, said in a statement that it would be terminating its activities after less than four years of operations, which have been plagued with weak financial performance.
PSB-Forex Struggled since the Beginning
The announcement from PSB-Forex follows after three and a half years of operations, with the broker losing money ever since commencing its operations and only a small active trader client base.
In fact, in its full-year 2019 financial statement, the company’s auditor gave them a going concern warning because of the continued losses. So, the fact that the forex dealer is going to revoke its licence is not completely unexpected.
Russia’s FX Market Shrinks Even Further
Once PSB-Forex stops operating in Russia’s FX market that will bring the number of licensed forex dealers down to three. All of the remaining players are part of larger banking groups.
In a statement on its website, the FX dealer said on Wednesday (translated): “PSB-Forex LLC hereby notifies of the decision taken by the Sole Participant of PJSC Promsvyazbank to refuse to carry out the activities of a forex dealer.
“At present, PSB-Forex LLC is preparing to submit an application to the Bank of Russia for the voluntary cancellation of the Bank of Russia license to operate a forex dealer. We ask you, by September 30, 2020, to send LLC PSB-Forex a written Notice of termination of the Framework Agreement.”
With the deadline set for 30th September 2020, clients need to close all of their open positions before the day of its termination and no later than five working days before the expected date of termination.
“If you fail to fulfill the above Obligations Obligations In finance, an obligation is a financial responsibility where the terms of a contract must be met. Should an obligation between parties fail then the party who is at default may face legal action. In this scenario, the guilty party will not only have to agree to pay the set amount to fulfill the contractual arrangement but may also be responsible for covering all legal proceedings cost. Routine payments or outstanding debt of any kind are considered financial obligations, so if someone owes you In finance, an obligation is a financial responsibility where the terms of a contract must be met. Should an obligation between parties fail then the party who is at default may face legal action. In this scenario, the guilty party will not only have to agree to pay the set amount to fulfill the contractual arrangement but may also be responsible for covering all legal proceedings cost. Routine payments or outstanding debt of any kind are considered financial obligations, so if someone owes you Read this Term, the written 'Notice of termination of the Framework Agreement' received from you is recognized as an application to close all open positions and an order to withdraw funds from a special section of the client's nominal account to the bank account specified by the client in the Framework Agreement,” representatives of the subsidiary of Promsvyazbank added.