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The expert stated about the balanced regulation of the Russian Forex market

Dronov: the over-the-counter foreign exchange market of the Russian Federation is a well-developed system today
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The Russian Forex market demonstrates an optimal level of regulation that helps protect private investors. Kirill Dronov, Managing Director of Alfa-Forex, told Izvestia on November 19 that the current regulatory measures are aimed at protecting the least experienced participants from the most risky operations by limiting maximum leverage and volatile instruments.

However, the expert warned that stricter regulations could lead to an outflow of traders to offshore jurisdictions, citing the findings of the international organization IOSCO.

"According to international practice, setting strict limits on leverage, the list of instruments or the minimum deposit creates risks of migration of customer demand to regions with less stringent standards. IOSCO recommends focusing on the transparency of the quotation methodology, the immutability of the parameters of spreads, swaps and commissions, as well as the clarity of execution of customer requests," the specialist said.

Violations in these areas, according to him, can lead to loss of funds even with conservative leverage sizes.

According to Dronov, the Russian over-the-counter foreign exchange market today is a developed and balanced system that is protected from sanctions pressure and has provided significant support to the financial industry during the period of geo-economic tension. The expert noted the trend of a massive return of traders from offshore jurisdictions to the Russian one, but cautioned that further tightening of margin trading requirements could reverse this positive trend.

Igor Kovalchuk, Commercial Director of the NC Logistic logistics operator, told Izvestia on September 12 that Russians have become more active in investing in commercial real estate due to their high profitability. According to him, warehouse facilities are the most popular among private investors, the demand for which has increased in recent years.

All important news is on the Izvestia channel in the MAX messenger.

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