2015/05/26

UCRFIN took part in the Second International Forex Congress

FX_Congress_LogoOn April 23, 2015 the Second International Forex Congress took part in Moscow (Russia). The Congress was attended by representatives of the largest Forex companies operating in the post-Soviet space, regulators, credit and banking institutions, scientific and expert community, associations, NGOs and media.

During the Congress the most current problems of Forex business, including risks related to instability on foreign exchange markets and region’s general economic problems, exchange and other restrictions were discussed. Forex companies’ interaction with banking institutions, payment systems and acquirers, latest software and analytical systems, marketing, advertisement, rating and other issues were also covered.

The Forum’s key debate was the discussion of the legislative regulation of the Forex business triggered by the adoption of the Russia’ federal law #460 on Forex dealer activities’ regulation in December 2014, the work on which had been lasting for several years. In the course of the thematic panel the participants had discussed the law’s implementation practice and ways of its further improvement.

It is worth noting that Russian regulation model adopted differs remarkably from that of the EU. In particular, in Russia the access of non-resident legal bodies, their representations and affiliates to Forex business is limited; the leverage level limitation is introduced; the CFD (contract for difference) instrument is foreseen only for currency pairs and doesn’t include other basic assets etc. So, the Russian model is interesting for the analysis, but cannot be realized in Ukraine due to its incompliance with the EU rules and regulations.

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In his report during the thematic panel the UCRFIN Association’s Chair of the Board Oleksiy ATROSHCHENKO acquainted the participants with possible ways of Forex business regulation being discussed in Ukraine. In particular, it was noted that as a result of the EU Association Agreement signing and ratification Ukraine assumed obligations to adapt its legislation in the financial instruments and financial services area to the EU norms and regulations. This includes the MiFID (Markets in Financial Instruments Directive) and its updated version MiFID-2, which should enter into force on January 03, 2017.

«Consequently, in Ukraine the legislation on financial derivatives should be adopted, which should contain instruments Forex business operates with, including CFD (contract for difference). The Forex brokers’ licensing should be also harmonized with the EU norms; a self-regulation mechanism as an additional control instrument should be implemented as well. As of now, the Draft Law #2290 “On Forex Dealer Activities in Ukraine” was submitted to the Verkhovna Rada (Parliament) of Ukraine, which requires a detailed analysis for compliance with European and international norms and regulations. At the same time, in order to consider positions of all stakeholders the creation of the working group for improvement of the Draft Law is planned, in which the UCRFIN Association will take an active part», – said the UCRFIN’s Chair of the Board.

Full text of Oleksiy ATROSHCHENKO’s presentation (in Russian).

For more detailed information about the Congress please follow the link: http://fxcongress.ru/