NAFD is an independent non-governmental organization. Its main task is to create a transparent Forex market. Previously, the association was called CRFIN, but on July 15, 2016, they changed their name to NAFD. When this national association was established in 2010, it had the following aims.
- Building the foundation for a civilly regulated OTC market
- Fight against fraud and unfair competition
- Increasing the transparency of the market
During this time, NAFD was able to regulate and interact with the firms, to develop criteria for the selection of reliable brokers by blacklisting the companies.
With the development of the regulation mechanisms of Forex firms, NATD aims to develop a robust self-regulatory institution that can be merged under a licensed broker by the Central Bank of the Russian Federation, as well as setting national standards for brokerage firms. NAFD thinks that National Regulatory Authority should be accredited by the Central Bank of Russia.
The duties of the NAFD are as follows.
- Developing the basic rules and principles of the professional activities of the Forex brokerage firms NAFD
- Setting standards for professional ethics and reputation of NAFD member companies
- Monitoring and regulating brokers' compliance with the requirements of Russian Federation legislation and NAFD compliance
- Analyzing the activities of NAFD member companies.
- Providing legal advice and training to traders and investors
Therefore, NAPD is an attempt to establish an independent self-regulatory institution in Russia to protect the interests of traders and investors, but this time is supported by the law on Forex dealers and the Bank’s direct involvement.
The future certainly looks much better for the traders in Russia. Main goal is to inspect companies and make them better and safer. Over the years, the number of authorized Russian brokers will increase, giving investors a wider choice.