Russia Goes After Unregulated Firms and Germany Demands Balance Protection – Best of the Week

This week some of the biggest stories in the online currency trading industry involved new actions to protect retail clients by regulators in Russia and Germany.

German protection

On Monday the news broke that the German regulator decided to use the ‘intervention option’ to protect retail clients from . BaFin’s Executive Director, Elisabeth Roegele, said: “By restricting trading in CFDs we are making use for the first time of the product intervention option.”

A number of brokers, including CMC Markets, IG Group, and Plus500, soon announced that they BaFin’s new protection requirements.

Sucden Financial

On Tuesday Sucden Financial announced that it is expanding its services with . The firm is aiming to cater to the increasing need of institutional clients to hedge their foreign exchange market exposure.

Managing Director of Sucden Financial, Marc Bailey, said: “Our new FX options offering is part of a significant investment plan to expand our firm’s institutional FX services and provide improved distribution of products to key clients.”

Russia

On Wednesday we reported that the Russian Federal Anti-monopoly Service (FAS) is preparing to take action against brokers that are operating in the country .

Initial reports suggest that the Russian FAS will submit its recommendations in the third quarter of this year. While there is still some time until then, foreign brokers could look at certain limitations with regard to dealing with Russian clients.

MMA Comback

On Thursday it was revealed that MMA Forex, the forex brokerage arm of MMA Group, is now and seeking investments all over again under its new trading name, MMA Bank GT.

The general manager of the parent company, Zubair Ahmad, said: “The owner of MMA Forex is no longer alive. His son who happens to be our CEO, was arrested over regulatory issues. MMA Group has no links with MMA Forex. We are not taking any investment on behalf of MMA Forex. We are here to just facilitate the payments of those affected by it.”

Financial Commission

On Friday we reported that The Financial Commission (FinaCom), an independent self-regulatory compliance specialist for the financial services industry, has welcomed its latest member firm with the addition of .

A few days earlier, the group approved . All clients of a company that is a member of FinaCom are protected by the compensation fund which acts as an insurance policy.

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