Russian Promsvyazbank Acquires Forex Broker License

Russian privately owned company Promsvyazbank became the third commercial bank to enter 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, as was first published on Finance Magnates Russia. The firm’s subsidiary PSB-Forex just got approved by the Bank of Russia to become the 8th brokerage that is officially authorized to operated in Russia.

After FINAM and VTB 24 have shown interest in the retail forex market, a third commercial bank is entering the field just days before the enactment of the new regulatory framework. Every company that has acquired a license from the Bank of Russia also needs to be a member of the officially authorized self-regulatory organization (SRO), which is currently the Association of Forex Dealers (AFD).

[gptAdvertisement]

A total of eight companies are currently authorized by the Bank of Russia to offer their services in the country. Foreign exchange and CFDs brokers are currently forbidden from advertising. The ban hasn't prevented brokers from offering their services in Russia, yet after the official enactment of the regulatory framework in May they will be able to promote their services openly.

Promsvyazbank applied for a license in December 2016 and has been actively providing brokering services to institutional clients in Russia. The company is delivering to its clients access to its PSB-Rates platform where traders gain access to foreign exchange, CFDs and other asset classes. The bank is also a member of the International Capital Markets Association (ICMA) and ISDA (International Swaps Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Swaps can be defined as a derivate contact composed of two parties that exchange to cash flow between two separate financial instruments.They are generally divided into two categories. This includes contingent claims (options) and forward claims, where forward contracts, swaps, and exchange-traded funds (ETFs) are exchanged. Commodity price, equity price, interest rate, and foreign exchange rate are common variables used as one of the cash flows in swaps upon initiation. Different Types of Swaps Read this Term and Derivatives Association).

The Russian market has been a lucrative spot for a number of companies in recent years. After the introduction of the official regulatory framework no foreign companies have been interested in acquiring a license. As with many institutions in Russia, the trust in the government's abilities to protect the interests of individual investors is very limited.