UCRFIN representatives took part in the Round Table «Ways of Forex Services Market Legislative Regulation in Ukraine»
On April 28, 2015 the round table «Ways of Forex Services Market Legislative Regulation in Ukraine» took place in the premises of the Verkhovna Rada of Ukraine. The event was organized resulting from submission of the Draft Law Nr.2290 «On Forex Dealer Activities in Ukraine» with the aim of discussing the general concept of the Forex market regulation in Ukraine, including definition of the regulation object, mechanisms of protection of rights and interests of market participants and private individual traders, public interests, etc.
Discussion participants were Forex business representatives, in particular the UCRFIN Association Director Dr. Oleksandr SAKHARENKO and experts of the Association’s member companies, representatives of public authorities, regulators, relevant parliamentary committees, specialists in stock and financial markets, exchange trade and international law, representatives of civil society and media.
The major discussion was focused on defining the legal nature of services and trading instruments suggested by Forex companies to their clients. In their speeches Forex brokers mentioned that the instruments Forex business operated with fell into the financial derivatives category. Consequently, the traders were rendered financial services in trading derivatives. In the opinion of Forex business representatives, this approach prevailed in the majority of countries with developed financial services sector and, consequently, the respective regulation in Ukraine should be implemented in such a way.
In his turn, Dr. Oleksandr SAKHARENKO stressed that the UCRFIN Association uniting leading Forex companies of Ukraine advocated implementation in Ukraine of the European legislation norms in the area of financial instruments and financial services market regulation. In particular, the provisions of the EU Markets in Financial Instruments Directive Nr. 2004/39/ЕU (MiFID) and MiFID-2 Directive (№2014/65/ЕU), which would enter into force on January 03, 2017, should be adapted in Ukraine. The Directives foresaw a wide spectrum of financial derivatives, including the CFD (Contract for Difference) and other Forex business instruments. Regulation and licensing of Forex services should be also conducted on the basis of recognized European practices, including the self-regulation mechanisms, he said.
Dr. Sakharenko reminded, in particular, that Ukraine had assumed obligations on implementing MiFID provisions according to the EU-Association Agreement. «Therefore, the UCRFIN’s position is that the most relevant legislative mechanism to regulate the Forex business and to implement the mentioned EU Directives should be the Law of Ukraine «On financial derivatives». It should foresee respective instruments and regulation mechanisms, including the Forex business sector. The necessity of adopting such a law is contained in the present Governmental Coalition Agreement as well as in the 2015 Monetary Policy Basics of the National Bank of Ukraine», – emphasized the UCRFIN Director.
Nevertheless, experts of the UCRFIN Association and its member companies will continue their active participation in all initiatives on Forex business regulation and in working groups related to Draft Law Nr.2290, in particular. The crucial point in this regard is compliance of the adopted legislation with the EU norms and regulations and international obligations of Ukraine.