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Russia’s Forex law today cleared the final step before coming into force with the document having been signed by the country’s president Vladimir Putin, before being officially published.
This means that Russia’s FX industry has now its own national law, with the first clauses coming into force as soon as on January 1, 2015. However, the start of the new year will see only some amendments to the definition of “securities” and “forex dealer activities” come into force.
The Forex law is officially set to be implemented on October 1, 2015, which means that rules which include a maximum leverage of 1:50 will apply starting from this date.
As far as schedules and deadlines are concerned, the law says that all Forex companies wishing to continue to offer their services in Russia should obtain their licenses as Forex dealers not later than January 1, 2016. The latter means not only having a minimum capital of RUB 100 million but also being a participant in a Forex self-regulatory organization (SRO), which involves adhering to certain standards and also paying a non-obligatory fee toward a Compensation Fund.
One of the most controversial rules is that which surrounds maximum leverage. The law signed by Mr. Putin today stipulates that the cap should be set at 1:50, with the Central Bank of Russia able to allow a raise to 1:100. CRFIN, a Forex SRO in Russia, has stated that it will push for relaxing this rule.
Traders will be able to take their disputes with Forex brokers to court, while companies face new standards for advertising their services and products, as well as maintaining their technological equipment and software.
It has been a long journey for the Forex law, with its first version entered in parliament in April 2013 and its final version approved by the president on December 29, 2014.
Many questions are left in the grey area and have yet to be clarified, however, including trading with binary options and CFDs, as well as allowing Russian traders to use the services of foreign FX brokers that prefer to move on without a Russian license.
The full text of the Forex law, as signed by the Russian president, can be downloaded here.