VTB Group, one of the largest banking companies in Russia has acquired a license from the Bank of Russia to operate a subsidiary retail forex brokerage for traders in Russia.
VTB Group Receives Forex License from Bank of Russia
The banking giant becomes the fourth such company to receive a forex licensure.
This takes place after an announcement by the Bank of Russia that it has issued VTB 24 Forex, a VTB Group subsidiary, with a professional securities market license.
Back in February, it was reported that VTB was indeed setting up its subsidiary, VTB 24, with the goal of providing retail forex trading services.
Russia’s Forex Law came into effect on January 1, 2016. The law stipulates that brokers offering forex trading to retail clients in the country are required to have or to apply for a license from the Bank of Russia.
However, the central bank in Russia has not been very generous in issuing these licenses. VTB is only the fourth company to have been handed the forex trading license under the new law. Others that have obtained the license include TeleTrade, TrustForex and FINAM while many others have been rejected including Forex Club and Alpari, two large players who serve the Russian market.
Earlier in July head of VTB24, Alexander Sokologorskiy said the brokerage was looking forward to a positive reply from the regulatory authority. Prior to receiving its independent license, VTB24 joined the National Association of the Forex Dealers, a self-regulatory organization for over the counter financial trading instruments. VTB 24’s Sokologorskiy served as a member of the NAFD’s board of directors.
VTB Group is a global provider of financial services. The banking giant is comprised of more than 20 financial companies and credit institutions in all major areas of the financial market.
In spite of the being made up of several companies, VTB Group has a common brand, development model as well as an integrated financial system that incorporates compliance and risk management functions.