Russia commonly to refered to the ‘home’ of the ubiquitous Forex market is planning to fully regulate the spot FX market as a regulated asset class by 2013 according to Andrei Lozovoy a government representative.
Retail investors have been heavily attracted to the liquid asset class, domestic Russian firms have been strong in marketing the product across the BRIC nation.
Amongst the BRIC nations Forex is most established in Russia, representing a full eco system of: trading platforms, executing brokers and a large number of traders.
Leading Russian brokers had formed a self-regulatory pact to try to improve the image of Russian FX brokers.
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Spokesperson from the Ministry of Finance believes the many offshore Russian brokers should be regulated with a dealers license, similar to securities brokers.
The new regulations will regulate firms and employees and all activities especially the financial promotion aspect of their business which receives most complaints. Most messages highlight the positives but not the risks involved in Forex trading.
Turkey a popular destination for Forex brokers recently regulated the asset class.
Forexmagnates team wrote a detailed report about FX in Russia, available in the Q3 quarterly report 2011.