Another forex broker, TeleTrade, has applied with the Russian central bank for forex trader license, the broker said on Wednesday. It has filed the required documents to obtain a license, becoming the third company to announce it has done so. Brokerage groups Finam Forex and Forex Club are the other two brokers wishing to be authorized in Russia.
Under the local regulations, the Russian central bank, which is in charge of the forex market regulation in the country, has to take a decision within 60 business days.
TeleTrade expects to obtain a license in the first quarter of 2016 and to start full-scale operations in complieance with the new regulations, its CEO, Andrei Rybin, was quoted as saying in a press release.
Earlier this year, Russia adopted 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 changes aim to increase transparency and to push questionable companies out of the market.
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 requirements under 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.
TeleTrade holds a license issued by the Cyprus Securities and Exchange Commission (CySEC) and can provide its services to clients from all EU member states. It is a member of the Russian self-regulatory organization Centre for regulation in OTC Financial Instruments and Technologies (CRFIN).
The TeleTrade group has 200 offices in 30 countries. Its clients can trade forex, as well as contracts for difference (CFDs) on commodities, stocks, futures and currencies. In Russia it is among the leading forex brokers and even was recognized as the leading forex brand in the country for 2015.