The Russian Federation Council Approves Forex Law
The law outlining the establishment of regulation in the Russian foreign exchange market has passed another legal phase, to take
Finance Magnates Staff
|
Regulation
(
Retail FX )
|
2014-12-25T12:35:55+00:00
2014-12-25T12:35:55+00:00
As expected, the Federation Council, the upper chamber of the Russian parliament, has approved today the much-awaited forex law during the closing session of 2014. The law, officially presented as “Amendments to Certain Legislative Acts of the Russian Federation,” is meant to establish a regulatory framework for trading in the OTC market in Russia.
Starting from October 2015, all existing and new brokers would have to obtain a license by a Self Regulated Organization (SRO), which will be operating under government supervision. After January 2016, brokers without a license will be forced to shut down.
The bill outlines the limitations brokers will be facing, most notably the leverage ratio they can offer, set between 1:50 to 1:100.
Suggested articles
FX Veteran Hossain-Nelson Joins INFINOX to Ramp Up IX Prime OfferingGo to article >>
Join the iFX EXPO Asia and discover your gateway to the Asian Markets
Another major point worth mentioning is that CFD and binary options trading has not been included into the bill in any form. Therefore, depending on interpretation of the law, a binary options broker could offer services in Russia without a license. Also, foreign firms are not governed by the new laws. But there is market speculation that Russian lawmakers may apply measures to limit trading with unregulated foreign brokers such as warnings or blocking websites. With the structure of the law providing flexibility, however, guidelines towards CFDs, binary options and foreign brokers can easily be changed in the future.
beyond my pay grade…can anyone give an example.
Yes, example transactions please..
..because my first thought was: “am I the only one who’s entirely uncomfortable with the idea of a unknown property entirely controlled by a 3rd party adding or removing estimated risk from a trade?”
Even if it proves to add alpha, it can’t just be a black box that tosses in a ringer pair because it feels the trader needs larger stones. Risk measures are going to be very different from trader to trader, fund to fund, after all.
So more info on how / what it’s doing would be great.
Otherwise it sounds interesting.
Well done, Adil. Happy April 1
Well played.
I bought into this until I reached Google Glass, “secret benchmark” and “Le Premier Avril Alternative Investment Fund”. Funny!
….. I totally fell for that.
In my area of the world, it wasn’t April 1st yet.
:/
so will 1:100 max leverage be for all retail investors, or only those with a certain acct balance?
This is a good news for expert traders
low leverage is not good for any one,
low leverage – high investment
with low leverage traders trades less effect on spread with liquidity
It seems that the bill has been somewhat watered down from the original which made mention of minimum capital requirements for brokerages? Which Self-Regulatory Organisations are being given the Kremlin’s seal of approval? I’m guessing CFRIN?