Forex Club applies for forex broker license in Russia

Forex Club applies for forex broker license in Russia

Russian-based forex brokerage group Forex Club said on Tuesday it has applied to obtain license to operate as a forex dealer in Russia. The broker submitted its application with the Russian central bank on 7 December.

The broker provided no details.

Under the local regulations, the Russia central bank, which is in charge of the forex brokers regulation in the country, has to take a decision within 60 business days.

The Russian central bank has said local brokerage group Finam Forex was the first to file a request for a forex broker license in November.

Earlier this year, Russia adopted a regulatory amendments, which require forex brokers to obtain a license from the relevant authorities in the country in order to continue providing their services to local citizens after 1 January, 2016. In addition, brokers need to join a self-regulatory organization, consisting of at least 10 participants. Otherwise, they have to cease operations in the country as of the beginning of 2016.

The new law came into force on 1 October, 2015 and has not been accepted positively by existing forex brokers, as they find it restricting and disagree with some of the definitions in it. They have even asked the central bank to rethink the deadline as it is too tight, making it impossible for brokers to meet the requirement of the new Russian forex law. They suggest the deadline should be extended by a year. The central bank has showed willingness to negotiate the regulation implementation, but the Russian finance ministry is more cautious in its stance.

Forex Club is a provider of trading and educational products for investment in forex, contracts for difference (CFDs), securities, precious metals, oil and gas, indices and other instruments. It is a founding member of CRFIN, the Russian self-regulatory organisation. The group does not provide on its website information regarding licensing.

Source: Forex Club

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