24option and 24FX denied Russian Forex license by the Bank of Russia

LeapRate has learned that Retail Forex and Binary Options brokerage group Rodeler Limited has been rejected for a professional securities market participant license by the Bank of Russia.

The license, had it been granted, would have allowed Rodeler to operate a retail forex dealer in Russian, serving Russian clients.

Rodeler Limited, based in Cyprus and operated out of Israel, owns and operates the 24option (24option.com) and 24FX (24fx.com) brands, as well as GrandOption and QuickOption. Rodeler Limited holds a CIF license in Cyprus issued by CySEC.

The Bank of Russia didn’t provide a reason for their decision.

russiabnkThis marks the second international setback for Rodeler Limited and its brands over the past month. We had reported in early August the French financial regulator AMF banned Rodeler and its brands including 24option from doing business with French traders, in what the AMF called ‘a first’ for the regulator given that Rodeler was (and remains) duly licensed by another EU regulator. However the AMF stated  that Rodeler failed to act in an honest and fair manner in the best interests of its clients, to the detriment of investors residing or based in France.

We understand that that company had set up a Russian Limited Liability Company called Rodeler RU for the purpose of receiving a Bank of Russia license. It is unclear at this stage what the company will do with Rodeler RU, or if it will reapply for a Russian Forex license.

Only four companies have been granted retail forex licenses by the Bank of Russia. The latest, to a subsidiary of Russian banking giant VTB, was just issued yesterday. The other licenses have been issued to FINAM ForexTeleTrade and TrustForex. The two largest retail forex brokers serving the Russian language market, Alpari and Forex Club, have also yet to be awarded a Russian Forex license.

All brokers serving clients in Russia were to have received (or at least applied for) a Bank of Russia forex license by the beginning of 2016, according to Russia’s new Forex Law.

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