FX.co ★ Russia drafts law on Forex regulation

According to the newspaper Vedomosti, the State Duma has drafted the law on Forex regulation. A new amendment sets out the requirements, including the leverage limits, for Forex dealers. Also, different restrictions on manipulation and customer deception are provided. Who will monitor the market is not decided yet. The document reads that Forex dealers will be obliged to keep records of all contracts and operations; they will not be able set up contracts for the same transactions with different counteragents under different terms; they will be prohibited to terminate a contract unilaterally or change its terms; they will not be allowed change the bid price without changing the ask price. The draft also outlines a Forex dealer capitalization of at least 100 million roubles provided that the client funds on his or her account do not exceed 150 million roubles. If there is a larger sum, then the capital should be increased by 5% of the sum that exceeds 150 million. The law will require the Forex brokers to own software and technological means located in Russia to carry out trading. Besides, the bill states that all settlement with a Forex dealer should be made on a clearing basis. The law will be put into force in March 2015.