Regulators in Russia are planning to reduce the maximum leverage allowed with FX transactions to 1:30 form the current 1:50, reports Vedomosti, a Russian business portal, citing an interview with a deputy director of the Russian central bank, given to Reuters.
The move will follow a similar step, taken by the European Securities and Markets Authority (ESMA) in August, which also caped the maximum leverage with FX brokers at 1:30.
Currently, FX brokers in Russia can still offer leverage of up to 1:50 – the same as the leverage allowed with FX trade in the USA.
Olga Shishlyannikova, a deputy director of the securities and commodity markets department at the Bank of Russia, says the move is about to be taken because of the numerous complaints by traders, who have suffered serious loses.
The new leverage restrictions are not expected to impact the market immediately, as many Russian brokers also operate offshore branches, which basically offer unlimited leverage to Russian clients. According to Shishlyannikova, however, that practice is also expected to be banned.
Another potential measure, could be the introduction of a obligatory “professional training” for all clients of FX brokers – a suggestion, that is still not confirmed.