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Russia to Lower Minimum Capital Requirements for FX Brokers

By:
FX Empire Editorial Board

The Russian parliament’s lower chamber (State Duma) lowered is set to debate on a Forex bill in October, which if passed, will lower the amount of capital

Russia to Lower Minimum Capital Requirements for FX Brokers

The Russian parliament’s lower chamber (State Duma) lowered is set to debate on a Forex bill in October, which if passed, will lower the amount of capital needed to establish a Forex brokerage to $76,000.

The State Duma will vote the second time to pass the bill that seeks to regulate the nation’s expanding FX industry. The second reading is set for October 24, 2014, having been postponed several times since June 2013 in order to introduce changes to issues such as leverage limits and additional consumer protection.

If it is approved, the bill will require securities traders to raise a minimum capital of RUB 3 million (EUR 60,000 or USD 76,000) in order to operate in Russia. This is much lower than Cyprus’s minimum capital requirement of EUR 200,000, making it one of the lowest in most global jurisdictions, besides offshore havens. The figure has been scaled down from the previous minimum capital requirement of RUB 35 million.

One of the reasons for Russia’s decision to lower the capital requirements is to curb further capital flight out of the country. Furthermore, during the first reading, the State Duma deputies expressed concern about strict regulations that may stifle the growth of the Russian FX industry.

Meanwhile, Monex Group’s subsidiary, TradeStation entered into a partnership with leading Chinese financial services firm Guosen Securities Company Limited that will see Guosen Securities have exclusive rights to roll out TradeStation to clients in China.

The state-owned Guosen Securities will offer TradeStation 9.5 to both institutional and individual clients such as Shanghai Futures Exchange (SHFE), Zhengzhou Commodity Exchange (ZCE), Shanghai Stock Exchange (SHSE) and Dalian Commodity Exchange (DCE).

 

 

 

About the Author

FX Empire editorial team consists of professional analysts with a combined experience of over 45 years in the financial markets, spanning various fields including the equity, forex, commodities, futures and cryptocurrencies markets.

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