UCRFIN Management Rejected the Initiatives on Advisability of Forex Business Ban

On May 26, 2015 a round table «Forex in the World and in Ukraine» took place. It was attended by the members of the working group on revising the draft law Nr.2290 on Forex Dealer Activities in Ukraine, Forex business, financial services and financial market experts and media.

In the course of the round table its participants stressed on the need of regulating the Forex market in Ukraine as the means of protecting rights of financial services’ consumers, creation of equal conditions for all market players, effective barriers against frauds, increasing State budget incomes, etc.

Director of the Association «Ukrainian Centre for OTC Financial Instruments and Technologies Development» Dr. Oleksandr SAKHARENKO stressed, that the Association and its member companies supported the market transparency and clear market operation rules complying with the European regulation model. In particular, this included recognition of Forex business as the provision of financial services on operation with financial derivative instruments (derivatives), which corresponded to the EU legislation requirements. According to the EU MiFID Directive, such an instrument as the Contract for Difference (CFD) for currency pairs Forex companies mainly operate with belonged to the derivatives.

In the UCRFIN Director’s opinion, the initiatives on total banning the Forex business till the moment of the respective legislation adoption brought in by representatives of certain public initiatives and journalists were destructive for the market. They would lead to the market disruption with a low chance of its further recovery. In its turn this would result in the loss of workplaces, first of all by the young people, and disappearance of alternative ways of earning and currency risks management for the citizens. «Today we are in the process of discussing the respective legislation. We have jointly determined the timeframe, within which we will develop norms acceptable for all stakeholders. That is why all radical steps will only hinder this process», – said the UCRFIN Director.

Dr. Oleksandr SAKHARENKO has informed the attendees, that the Association was actively dealing with the complaints from the Clients of UCRFIN member companies. For this purpose a special complaint submission form is foreseen on the UCRFIN web-site, which could be used by any trader to send his or her address. As of today the Association has an experience of positive consideration of a number of addresses and assistance to finding mutually acceptable solutions between traders and UCRFIN member companies.

Discussing the idea of the legislative ban of Forex services advertising till the adoption of the legislation on Forex dealer activities several working group members insisted upon the UCRFIN Chair of the Board Oleksiy ATROSHCHENKO objected that on the present stage realization of this initiative was impossible as the regulation subject was not defined, that’s why the ban could not be realized in practical dimension. «In our opinion, we should focus, first of all, on adoption of the Law, which should define, what is a Forex company, which instruments it operates with, how it should be licensed and what are the requirements to its activities’ advertisement», – mentioned the Association’s Chair of the Board.

Summarising the round table results its participants have agreed to place further efforts to development of the Forex business regulation model in Ukraine and its turning into a regional Forex-hub as it had been suggested by one of the speakers. UCRFIN will continue its participation in this process and will involve all its capabilities and resources into it.

Photo: www.ukrinform.ua

Video of the round table “Forex in Ukraine and in the World”