Regulatory organization of AFD

AFD ("Association of Forex dealers") is a Russian self-regulatory organization (SRO) brings together participants (brokers) financial market Forex. This organization appeared at the end of 2015, its founder is broker "Finam Forex", first licensed by the CBR. Then in the AFD entered "Request group", "Trastforeks" and OOO "VTB 24 Forex", also a licensee of the Bank of Russia. October 12, 2016 "Association of Forex dealers", accredited by the Central Bank of the Russian Federation and became the first Russian official SRO, uniting under his command the Russian licensed brokers. In the end, AFD was ahead another organization NAFD, which is also awaiting the decision of the Central Bank of the Russian Federation. Before NAFD called CRFIN, but with the change of Russian legislation regarding the Forex industry changed its name to "national Association of Forex dealers". In NAFD part of the broker Alpari, which has already once been denied a license, but he re-filed the documents and is awaiting the decision of the Bank of Russia, and recently in NFD have entered licensed broker "Forex club".

In accordance with the legislation of the Russian Federation the number of SROs in Russia indefinitely, but must be provided in the SRO shall be not less than 26% of all Forex dealers licensed by the Central Bank of the Russian Federation. Earlier, the Bank of Russia said that there will be only one SRO with the condition of membership at least ten of Forex dealers, but it was contrary to the Constitution, therefore, this contradiction was resolved soon. AFD has completed this condition first, NAFD is likely to be a second SRO, and it is expected the third self-regulatory organization, which will bring together banks, owning a Forex companies. According to the law of Forex brokers licensed by the CBR, may not operate until you enter in SRO. With the advent of AFD members close to the beginning of its official activities in Russia. But there are a couple of the IOMdevelopment projects that do not give them this right. Is to develop uniform standards for Forex dealers and the establishment of framework contracts for the subsequent signing by clients of brokers. Apparently, I'm on SRO, and then sent for approval to the Bank of Russia.

The tasks and responsibilities of AFD

While it is not entirely clear what specifically will deal with SRO AFD. Most likely, in addition to the development standards and regulation of Forex dealers, it will be the decision of disputable situations between brokers and their clients, advising on legal issues, the creation of a compensation Fund in case of bankruptcy of one of the companies that is a party to AFD, inspections, etc. But what powers will be at AFD and other SRO, will they be able to impose disciplinary sanctions, fined, or it will deal exclusively with the Bank of Russia. It should be understood that the founders of such SROs are conventional brokerage companies which are not interested in strict control of their activities. And the purpose of the SRO is to prevent market competitors, especially foreign brokers.

Thus, AFD no better than such pseudoregular as NAFD, kroufr and The Financial Commission, and the emergence of the new law about Forex and tight control by the Central Bank of the Russian Federation will lead to the demise of the Forex market in Russia. It is already known that the leverage will decrease to 1:50, will intensify the monitoring of traders will take their mandatory identification, and in the future may even ban trade in Forex for those traders who do not have the appropriate capital. All of these conditions do not speak in favor of novice traders, and this means that the Russian market will remain the only major players. For individual traders, we recommend to pay attention on international brokers with a European license. Despite the fact that they have closed their offices in Russia, they continue to work with Russian traders, but also offer the best trading conditions and fast withdrawals with a wide selection of PLatiny systems.