Russian regulator is on the way to curb Russian brokers' moves. Russian Parliament is going to vote on a new forex regulation that will put caps on leverage and monitor forex ads closer.

In a move that mirror western forex regulators trend in tightening their rules, Russian regulator is on the way to curb Russian brokers moves. On 19 March, Russian Parliament is going to vote on a new forex regulation that will put caps on leverage and monitor forex ads closer. Beside of that, Italian and UK regulators are also in a streak.

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Advert Restrictions

Mass media has been quoting Serguey Shetsov from Russian Central Bank that said Russian authorities are working together to put restrictions on false advertising and leverage in forex companies. Shetsov is said to openly criticizing false ads by calling forex companies who promotes easy profits as charlatans. He is known as someone who opposes to over-the-top forex commercials, and once said that Forex ads should insert a warning just like cigarettes ads. Shetsov also mentioned the possibility of leverage capped at 1:50, and suggested that some pairs will be better off restrained more in the events of volatile market.

FYI, the US regulation already put 1:50 leverage cap for some time. But it is possible that such cap will be needed by Russia in the event of high volatility as is the case in Moscow Exchange after Russian President Vladimir Putin raises tension in the region by sending troops to Ukraine. Volatility in the exchange have increased rapidly, and so does Russian Ruble that fell sharply against fellow currencies, particularly USD.

 

Brokers Being Warned Again

Italian forex regulator CONSOB (Commissione Nazionale per le Società e la Borsa) has issued warnings against several investment companies, including five binary options providers. The companies in question are B.H.N.V. Online Ltd/Bnet on-line Ltd, Bo Investments Ltd, BFM Markets, Seaside Payment Services Ltd, BFXoption and Chronoption. CONSOB said that they are not authorised to provide investment services in Italy in any way and, therefore, not even via their respective websites www.opteck.com, www.banqueoption.com, www.bfmmarkets.com, www.tradersleader.com, www.bfxoption.com and www.chronoption.com.

UK FCA also posted a reminder to forex brokers in their February newsletter that was just released. In it, FCA kindly reminded brokers of the rules and wish they ensure trading execution stay in accord with those rules. FCA pointedly referred to Brokers in certain markets, including regulated CFD and spread-bet firms and those offering Rolling Spot Forex contracts for difference. Is this mean we could watch for another million pounds settlement!? We wish UK licensed brokers will review their practices and does not challenge their regulators' patience.