The Russian Finance Ministry replies to CRFIN: positively considers forex regulation in Russia

We continue reporting on the regulatory efforts in Russia which seem to pick up lately. Latest report was about Russian

We continue reporting on the regulatory efforts in Russia which seem to pick up lately. Latest report was about Russian Finance Ministry drafting a framework, however this has not been publicly confirmed. Russia’s version of NFA is called CRFIN and its Chairman recently received this letter from Russia’s MINFIN:

MINISTRY OF FINANCE OF THE RUSSIAN FEDERATION (MINFIN OF RUSSIA)

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DEPUTY MINISTER

9, Ilinka Str., Moscow, 109097

teletype: 112008

telefax: 625-08-89

29.08. 2012 № 01-AЛ-01-01/23

Mr. Sergey Vladimirovich Krivoborodov

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Chairman of SRO NCP CRFIN

1 korpus 57 (4) Partiyny Per., Moscow 115093

Dear Sergey Vladimirovich,

Having considered your appeal of 03.07.2012 № 5-МФ regarding the implementation of self-regulatory mechanisms in the retail Forex market, the Russian Finance Ministry informs about the following.

The Russian Finance Ministry encourages the initiative for implementation of self-regulatory mechanisms in the Forex market.

Experience has shown that self-regulation is a natural and integral part of setting and standardization of professional activities. In the absence of mechanisms of government regulation in the Forex market, enhancement of the provided services there by introduction of appropriate standards, rules and other means to ensure transparency of trading activities and guarantees of user rights, worked out by SRO NCP CRFIN, is an important stage in the development of this segment of the Russian financial market. At the same time, however, the market participants should have the stimulus to observe the corresponding standards and maintain the business reputation – should these components be violated, the self-regulating organization under consideration is very likely to be used as a tool for redivision of the market by some of its members.

We draw your attention to the fact that increase in the membership of SRO NCP CRFIN should be strictly in line with the principle of voluntariness. At the same time, we consider that measures of SRO NCP CRFIN to involve other market participants in its activity helps to form consolidated views on the issues of market development and supports competition.

Sincerely,

A.L. Savatyugin

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