Russian privately owned company Promsvyazbank became the third commercial bank to enter the retail forex market in the country, as was first published on Finance Magnates Russia. The firm’s subsidiary PSB-Forex just got approved by the Bank of Russia to become the 8th brokerage that is officially authorized to operated in Russia.
After FINAM and VTB 24 have shown interest in the retail forex market, a third commercial bank is entering the field just days before the enactment of the new regulatory framework. Every company that has acquired a license from the Bank of Russia also needs to be a member of the officially authorized self-regulatory organization (SRO), which is currently the Association of Forex Dealers (AFD).
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A total of eight companies are currently authorized by the Bank of Russia to offer their services in the country. Foreign exchange and CFDs brokers are currently forbidden from advertising. The ban hasn’t prevented brokers from offering their services in Russia, yet after the official enactment of the regulatory framework in May they will be able to promote their services openly.
Promsvyazbank applied for a license in December 2016 and has been actively providing brokering services to institutional clients in Russia. The company is delivering to its clients access to its PSB-Rates platform where traders gain access to foreign exchange, CFDs and other asset classes. The bank is also a member of the International Capital Markets Association (ICMA) and ISDA (International Swaps and Derivatives Association).
The Russian market has been a lucrative spot for a number of companies in recent years. After the introduction of the official regulatory framework no foreign companies have been interested in acquiring a license. As with many institutions in Russia, the trust in the government’s abilities to protect the interests of individual investors is very limited.