The Financial Markets Regulatory Center of Russia

Since in recent years Russians have been increasingly trying their hand at trading on , the regulation of companies that provide these services in Russia has become an urgent need. Unfortunately, there is no official regulator in the Russian Federation yet, so there are a number of independent, non-commercial organizations trying to perform this function or at least part of it. Among them are the pioneer KROUFR and CRFIN and others, less significant. Today fortrader.org magazine looks at another regulator in Russia - CRDFR.

Regulation of the currency market in the Russian Federation by the CFTC

• Full name: Center for the Regulation of Relations in Financial Markets
• English title: Center for regulation of relations in financial markets
• Abbreviated title: CRDFR
• Subordinate countries: Russia
• Funding: at the expense of companies undergoing certification
• Degree of trust of tradersmedium
• Official website: crofr.net

CRDFR belongs to the type of non-profit organizations, that is, it does not pursue profit, and all funding is directed to ensure the operation of the center, as well as a non-profit partnership. Its main task is to ensure control over financial transactions at currency, stock, futures and other markets, as well as resolving disputes in partner companies.

To achieve its goals, the center certifies companies whose work meets the requirements. This means that every company that is certified CRDFRThe company is subject to a thorough inspection: both the documentation and the flow of documents are analyzed, as well as the technology for carrying out its activities. Depending on the results of the inspection, the applicant company receives or does not receive a certificate of the appropriate type. If company received a certificate, it guarantees that at the time of the inspection it met all the requirements set by the Center.

An interesting difference CRDFR from other similar non-state regulators in Russia is the creation of a compensation fund, payments from which are made in favor of the affected trader, if the Center decides on the misconduct of the partner company in his direction.

The main activities of the CRDFR:

• integrated assessment of the activities of companies providing services in the financial markets;
• certification of evaluated companies;
• full coordination of the activities of all participants in the Russian market as part of the international market;
• development of mechanisms to minimize risk for each financial market participant;
• development of valuation systems of companies providing services on the currency, stock and other markets with their subsequent application;
• Creation of a compensation fund for clients who have invested capital in a company with a certificate CRDFR.

Traders' confidence in the CFTC

Thus, the Center is an independent organization and promotes a policy of transparency for all participants of the exchange game. The degree of trust traders have in CRDFR average, because the Center does not constantly check its members, but only guarantees their compliance at the time of entry or after the inspection, which can be carried out no more than once a quarter. However, no list of recent inspections of companies on the website of the organization was found.