KROUFR: the first Russian regulator

Financial markets and in particular the financial markets are increasingly attracting the attention of people all over the world. Many people have tried or are now trying their hand at the interesting and attractive profession of trading currencies. The main interest of people coming to the profit, ideally a fast and high profit. But, as you know, along with the possibility of rapid growth of funds, there is a considerable risk of losing them, not only due to the specifics of the market, but also due to the dishonesty of intermediary organizations. To ensure the safety of exchange operations and protection of traders' rights in many countries there are controlling bodies of state and non-state level. KROUFR - one of those created by a non-governmental initiative, an association of the country's leading brokerage firms.

 Other financial regulators

• CFTC - Commodity Futures Trading Commission of the United States
• The Financial Markets Regulatory Center of Russia
• FFMS: Russia's financial markets regulator

Regulation of relations between participants of financial markets by the FCMC

• Full name: Financial Markets Regulatory Commission : Commission on Regulation of Financial Market Participants
• English name: The Commission on Regulation of Relations of Participants of Financial Markets
• Abbreviated title: FDRC
• Subordinate countries: operating in Russia
• Level of trust of traders: average
• Official website: kroufr.ru

Abbreviation KROUFR is deciphered by the words "commission for regulating relations of financial market participants". Its members are the largest brokers and DCs represented in Russia, wishing to achieve maximum protection of traders' rights. In other words, the commission is organized by dealing centers to solve arising disagreements between companies and clients. Since the FFMC is a non-profit organization, its mission is to develop the financial services market and regulate the relations of its participants.

Main objectives KROUFR (fully apply to dealing centers that are members of the organization):

• to provide conditions and coordinate the activities of international currency market participants;
• to assist other supervisory authorities in minimizing the risk of each of the participants in currency trading;
• to develop and implement rules as well as standards for carrying out a set of currency exchange operations, including the principles of business etiquette, settlement of disputes and disagreements;
• form an insurance fund for clients brokerage firms and dealing centerswho are licensed KROUFR;
• to promote the organization of conditions in terms of improving the quality of work of dealing centers;
• to contribute to the improvement of the legislative framework to control the activities of companies participating in international currency exchange;
• cover analytical information and principles of international financial market functioning;
• conduct research in terms of prospective development of the financial market, introduction of innovative technologies.

The work of the FCMC and traders' confidence

As you can see, KROUFR is a commission engaged in controlling the activities of financial companies within the currency market and resolving various disputes between brokerage firms and their clients. In fact, the organization has been working for a long time and has solved many disputes both in favor of companies and clients. If your broker has a license of the FCMC, ForTrader.org reminds, and you have a problem, you should write a letter to the organization with a detailed explanation of the situation. The issue will be considered by the members of the council consisting of representatives of member companies, after which a decision with recommendations will be made.

It should be noted that the recommendatory nature of the CRUFM decision does not impose absolutely no obligations on the third-party company, it is mandatory only for the members of the organization. That is why the PFMC regulation is often underestimated and put in the rank of medium or even low in importance regulators. It is hard to dispute this opinion, but in a situation where there is no official supervisory authority, even this approach is worth a lot.

The FCMC was a pioneer and even now, based on what its members have done, many similar organizations have been created, including companies that failed to obtain a license from the Commission. Nevertheless, it remains one of the oldest supervisory organizations, participation in which is honorable and not easy.