The Centre for Regulation in OTC Financial Instruments and Technologies (CRFIN), Russia’s Forex self-regulatory organization, earlier today announced it had gained another member – TrustForex.
The company has received a Category B status. Let’s explain briefly what this means.
CRFIN classifies its members in three category (A,B,C) according to their capital and their ability to meet their obligations to clients in risky circumstances. All members that have Category B status have to maintain reserve capital of at least RUB 2 million ($34,381). This sum has nothing to do, however, with the rather hefty capital requirement for Russian Forex brokers that the new law envisages – RUB 100 million ($1.72 million).
Talking of the Forex law, let’s note that under provisions that will come into effect in October this year, membership in a Forex self-regulatory organization in Russia will be compulsory for those Forex brokers (or Forex dealers, as they are called in Russia) wishing to target Russian investors. Those companies that are not members of a Forex SRO will have to cease their Russian operations from January 1, 2016.
To view the full list of CRFIN’s members, click here.
To view CRFIN’s note on its newest member, click here.