what should the authorities do to ensure that foreign brokers open representative offices in russia?
So there is definitely a need for foreign companies, with a uk, or swiss license. But what to do I don't know)
Kitchen forex has been legalised in Russia. They have a licence for a forex dealer and they told me at once that by law they do not need to have an overlap and the dealer is a counterparty to the deal. That is, a profitable trader for them is a direct loss. What they were running away from for so long, from this kitchen system, has become legal and the only possible option. And I will definitely not open an account with a cb-licensed company now. They don't need liquidity aggregators by law. Even more so, the law itself does not provide for any liquidity providers.
So there is definitely a need for foreign companies, with a uk, or swiss license. But what to do I don't know)
I agree that there is some nonsense about licensed brokers in our country. I even asked them a question about ECN accounts, but they did not answer me about the provider - or rather they called the provider an offshore legal entity. And this information was obtained from them by Central Bank of Russia - on my request they have initially concealed this information referring to "competitive advantages". And the services of which aggregator the offshore company uses remained unknown in the end.
It means one of requirements to add the presence of ECN trade and introducethe concept of liquidity provider (quotes), the concept of independent customer quotes control mechanism. The fact that the dealers on standard accounts form market marts is known, thus it is possible to cheat there. With ECN and price control mechanism it will be harder, if not impossible, to cheat.
Then we will summarise and send to the regulator in response to claims that forex should be banned.
My opinion is as follows
1. Create a preferential tax regime for Russian and foreign brokers Forex with offices in Russia to compete with the offshore, in exchange for higher taxes on income / profit tax on forex trading for individuals and legal entities from 13% and 20% respectively to 35%.
2) Study the general legislation in England, Australia, USA to regulate this area and apply it to increase the competitive environment / improve the quality of services provided.
Note: By the way have you seen English or US neo offshore brokers? I know one Australian offshore broker, a successful one at that, and I haven't come across any English/British or American offshore brokers yet. So, it may be of interest to look into the Australian legal system.
3. To establish for the accredited brokers a separate nominal account in the Bank of Russia for clients, legal entities and individuals, and a direct dependence on the volume of the nominal accounts on the volume of the attracted funds of resident individuals and legal entities.
4 An obligatory condition of the accreditation of brokers should be the disclosure of information about aggregators/suppliers of liquidity and the availability of a mechanism for verification of quotes provided by the broker to the client terminal through Internet resources independent of the broker
5. A single financial ombudsman with state participation, to resolve disputes with clients natural and legal persons resident in Russia, as the multitude of "manual" for brokers and self-regulatory organisations established by brokers themselves do not meet the requirements of objectivity and independence in resolving disputes with clients.
6. Introduceinto the law the notion of a liquidity (quotation) provider, the notion of an independent customer control mechanism for quotations and a requirement for mandatory disclosure of such information.
7. A broker shall not be entitled to claim compensation forlosses incurred by a broker in executing client's orders,exceeding the amount of client funds on deposit, if the broker provides the client with leverage for making trad es .
Share your suggestions. Then we will summarise everything and create an appeal to the regulator from the community of Russian traders.
What will it do? Even the accounts will gain nothing!
1) The point is an exchange of a shill for a shill.
2) They have already studied everything without our advice.
3) They have not thought of doing it themselves, to do a separate account. They just did not tell you about it.
4) All the general information they have is open, but it does not give anything to even accounts, not for you or for us, not for anyone.
5) Also meaningless, "Corruption".
6) What is it? All these terms, have been around for a long time. Who are liquidity providers, they are brokers, banks, exchanges, markets, even the very shops are liquidity providers. Only some of them allow you to sell quickly, and others allow you to buy quickly. And you think that everything develops and works by itself without laws.
7) They don't demand it, as long as the clients don't demand it from them either.
You have touched on a global subject, but you are thinking narrowly.
The Central Bank documents signed by Elvira Nabiullina on forex in Russia, has anyone read them at all? http://sroafd.ru/company/inye-dokumenty.html
http://sroafd.ru/standarty/bazovye-standarty.html
2.10. Quotes (prices, exchange rates) for currency pairs that have analogues on the Russian or
2.10. Quotes (prices (rates) for currency pairs having analogues on the Russian or foreign currency market shall not differ from the current values of the respective
best quotation (price, rate) for purchase or sale by more than 0.5 %.
2.11. Procedure for calculation of percentage of deviation of quotation (price, rate) for currency pairs
having analogues on the Russian or foreign currency market from the current values
the respective best quotation (price, rate) for purchase or sale (hereinafter referred to as the "Deviation Index")
deviation indicator):
2.11.1. if a Forex Dealer uses a single quotation source, then for
If a Forex Dealer uses the only Quote Source, for each Best Quote (Price, Rate) for Buy and for Sell respectively at a certain moment of time a Range of Deviation is formed.
at a certain moment of time a range with 0.5% deviation from such quotation (price, rate) is formed.
If a Buy Quote / Sell Quote given by a forex dealer at a certain point in time
the Buy/Sell Quote issued by a forex dealer at a given moment of time falls within the range of Buy/Sell Quotes set forth in accordance with the Paragraph 1 of this Article.
According to par. 1 of this Article, the requirement of par. 2.10 of the Basic Standard shall be deemed fulfilled.
requirement of clause 2.10 of the Basic Standard shall be considered fulfilled.
2.11.2 If a forex dealer uses several sources of quotes, then
2.11.2. If a Forex Dealer uses several sources of quotes, the list of Buy quotes and the list of Sell quotes are prepared, from which the best Quote shall be selected at the moment of the Order placement.
the best Quote for Buy and Sell at the moment of placing the quotation is selected
respectively, at a certain point in time a range is formed with a deviation of 0.5% from
of such quotation (price, rate).
If a Buy/Sell Quote issued by a forex dealer at a certain point in time
the Buy/Sell Quote issued by a forex dealer at a given moment of time falls within the range of Buy/Sell Quotes set forth in accordance with the Paragraph 1 of this Article.
According to par. 1 of this Article, the requirement of par. 2.10 of the Basic Standard shall be deemed fulfilled.
requirement of clause 2.10 of the Basic Standard shall be deemed fulfilled.
If the best Quote to Sell is less than the best Quote to Buy, then
this quotation pair is not taken into account when a forex dealer issues a quotation.
Then we will summarise and send to the regulator in response to claims that forex should be banned.
My opinion is as follows
1. Create a preferential tax regime for Russian and foreign brokers Forex with offices in Russia to compete with the offshore, in exchange for higher taxes on income / profit tax on forex trading for individuals and legal entities from 13% and 20% respectively to 35%.
2) Study the general legislation in England, Australia, USA to regulate this area and apply it to increase the competitive environment / improve the quality of services provided.
Note: By the way have you seen English or US neo offshore brokers? I know one Australian offshore broker, a successful one at that, and I haven't come across any English/British or American offshore brokers yet. So, it may be of interest to look into the Australian legal system.
3. To establish for accredited brokers a separate nominal account with the Bank of Russia for clients, legal entities and individuals, and a direct dependence on the volume of the nominal accounts on the volume of funds attracted by the clients, legal entities and individuals, residents.
4 An obligatory condition of the accreditation of brokers should be the disclosure of information about aggregators/suppliers of liquidity and the availability of a mechanism for verification of quotes provided by the broker to the client terminal through Internet resources independent of the broker
5. A single financial ombudsman with state participation, to resolve disputes with clients - individuals and legal entities - residents of Russia, as the multitude of "manual" for brokers and self-regulatory organisations established by brokers themselves do not meet the requirements of objectivity and independence in resolving disputes with clients.
6. Introduceinto the law the notion of a liquidity (quotation) provider, the notion of an independent customer control mechanism for quotations and a requirement for mandatory disclosure of such information.
7. A broker shall not be entitled to claim compensation forlosses incurred by a broker in executing client's orders,exceeding the amount of client funds on deposit, if a broker provides the client with leverage for making trad es .
Share your suggestions. Then we will summarise everything and create an appeal to the regulator from the community of Russian traders.
Teach people financial literacy...
If banks only deviated by + or - 3 kopecks from the central bank's value in their currency exchange quotations, it would be all the same where to exchange roubles for dollars or dollars for roubles.
Do we really have such a big market for all these services in Russia that they have something to discuss and regulate?
http://sroafd.ru/standarty/bazovye-standarty.html
2.10. Quotes (prices, exchange rates) for currency pairs that have analogues on the Russian or
2.10. Quotes (prices (exchange rates) for currency pairs having analogues on the Russian or foreign currency market shall not differ from the current values of the respective
best quotation (price, rate) for purchase or sale by more than 0.5 %.
2.11. Procedure for calculation of percentage of deviation of quotation (price, rate) for currency pairs
having analogues on the Russian or foreign currency market from the current values
the respective best quotation (price, rate) for purchase or sale (hereinafter referred to as the "Deviation Index")
deviation indicator):
Yes, the legislation is outdated. It does not know about ECN trading on the market. Accordingly, the broker does not interfere in the formation of quotes. And standard accounts are all a scam, everyone agrees on that.
0.5% of 60 is 0.03.
If banks in their currency exchange quotations would deviate only by + or - 3 kopecks from the central bank's value - it would not matter where to exchange rubles for dollars or dollars for rubles.
Do we really have such a big market for all these services in Russia that they have something to discuss and regulate?
I think there have been several thousand complaints about the work of brokers to the Central Bank over several years. What is surprising is that for 25 years they have not been able to create the conditions to ensure that the money of Russian citizens does not flow into the accounts of foreign brokers. The current legislation on licensing conditions and conditions of work of brokers not capable to compete with tax benefits from offshore and confidentiality of operations on the accounts of clients of these offshore brokers - as consequence and lack of jurisdiction of the brokers-fraudsters, which also not small.
This does not only concern this topic. Take at least our most fair court in the world. Hee)) So the problems are systemic. But the regulators should be helped to understand that Forex can be civilised and that there are examples in the world.
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Then we will summarise and send to the regulator in response to claims that forex should be banned.
My opinion is as follows
1. Create a preferential tax regime for Russian and foreign brokers Forex with offices in Russia to compete with the offshore, in exchange for higher taxes on income / profit tax on forex trading for individuals and legal entities from 13% and 20% respectively to 35%.
2) Study the general legislation in England, Australia, USA to regulate this area and apply it to increase the competitive environment / improve the quality of services provided.
Note: By the way have you seen English or US neo offshore brokers? I know one Australian offshore broker, and a successful one at that, and I haven't come across any English/British or American offshore brokers yet. So, it may be of interest to look into the Australian legal system.
3. To establish for the accredited brokers a separate nominal account in the Bank of Russia for clients, legal entities and individuals, and a direct dependence on the volume of the nominal accounts on the volume of funds attracted by the clients, legal entities and individuals, residents.
4 An obligatory condition of the accreditation of brokers should be the disclosure of information about aggregators/suppliers of liquidity and the availability of a mechanism for verification of quotes provided by the broker to the client terminal through Internet resources independent of the broker
5. A single financial ombudsman with state participation, to resolve disputes with clients natural and legal persons resident in Russia, as the multitude of "manual" for brokers and self-regulatory organisations established by brokers themselves do not meet the requirements of objectivity and independence in resolving disputes with clients.
6. Introduceinto the law the notion of a liquidity (quotation) provider, the notion of an independent customer control mechanism for quotations and a requirement for mandatory disclosure of such information.
7. A broker shall not be entitled to claim compensation forlosses incurred by a broker in executing client's orders,exceeding the amount of client funds on deposit, if the broker provides the client with leverage for making trad es .
Share your suggestions. Then we will summarise everything and create an appeal to the regulator from the community of Russian traders.