Exclusive: JFD Officially Exits Russian Market Amid New Local Regulations

After the official introduction of the new regulatory framework in Russia in May, local regulators are promoting action on the part of foreign brokers. JFD is the first company to officially confirm to Finance Magnates that the firm is exiting the retail Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term market in the country. The action is a direct result of the actions of the Russian authorities earlier this year.

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The Russian central bank became the chief regulator of the retail forex market with the establishment of a self-regulatory organisation (SRO) that officially enabled the framework. The Bank of Russia imposed strict limitations on the operations of offshore brokers.

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Commenting to Finance Magnates, a representative of JFD Brokers stated: “Due to recently imposed restrictions by Russian financial market regulators towards foreign retail OTC brokers, our exposure to the Russian retail market is limited. We are now only allowed to accept professional clients (defined by size of transactions, size of financial instrument portfolio and relevant working experience). For more details, please contact JFD's Customer Support.”

The company appears to be taking the step proactively after assessing the new local regulatory framework.

Can Russian Authorities Stop Illicit Client Onboarding?

Brokers that are regulated in the EU but have no Bank of Russia license are officially not allowed to operate in the country. While JFD has chosen the legal way to stay out of the market, Russian authorities may have to block brokers one by one in case they refuse to follow the official line.

With tensions between the West and Russia increasing in recent years, cooperation on the part of other global regulators is so far non-existent. The Cyprus Securities and Exchange Commission (CySEC CySEC The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision The Cyprus Securities and Exchange Commission (CySEC) is a financial regulatory authority of Cyprus. CySEC is one of the key watchdog authorities for brokerages in Europe, whose financial regulations and operations comply with the European MiFID financial harmonization law.Founded in 2001, CySEC is instrumental in providing licensing and registration for forex brokers and previously binary options providers.CySEC is responsible for a variety of different functions, which includes the supervision Read this Term) has not issued any circulars related to offering retail trading services in Russia. The regulator however has highlighted a recent message from the Latvian financial regulator that urged companies that operate in the country to do so via a local subsidiary or an introducing broker.