Rules for financial operations

Central Bank regulates operations on financial derivatives for non-residents

The Central Bank issued a decision (number 10852) directed to financial intermediation institutions (banks, financial institutions, and money dealers) to regulate operations on financial derivatives.

The decision prohibited financial intermediation institutions from performing any operations on financial derivatives or Retail Off-Exchange Forex on behalf of a non-resident party, except for those who are:

- Operating, or residing, in the United States provided they are members in the National Futures Association (NFA) and licensed by the Commodity Future Trading Commission (CFTC).

- Operating, or residing, in the G10 countries - excluding the US- provided they acquire a license to trade in financial derivatives from parties approved by the Central Bank.

- Operating, or residing, outside the G10 countries provided they have an “A” credit rating or above, and are under the jurisdiction of countries with an “A” credit rating or above.

The decision became effective upon its issuance on December 7. The Central Bank gave financial intermediation institutions six months to comply with the decision’s stipulations.