22 June, AtoZForex.com, Amsterdam - Swiss frank used to be people's safe heaven but it turned into brokers scary nightmare as the 15th of January Swiss Franc Black Swan event took place. Although, over 5 months has passed since the 15th of January the side affects and victims surface from different part of the world. The most recent Swiss Franc victim is the Russian broker. Russia based RVD Markets declared bankruptcy citing Swiss Franc losses.
Even though the primary target market of RVD Markets is Russia, the broker does claim to have an international presence, which is described on its the website: “RVD Markets, as the best forex broker company UK, unites the group of companies, registered in British Virgin Islands (RVD Markets Limited), Ukrainian partner company “RVD Markets”, having the license for broker and dealer activity, Russian partner company JSC “RVD Markets” and British company RVD Capital Holdings LTD.” Hence, the Russia based broker refers on its “Contact Us” webpage to various addresses ranging from contact details in Russia, the UK as well as the British Virgin Islands.
Relating back to the initiation of bankruptcy, RVD Markets has immediately cleared off its activities and placed its website on non active. Earlier today, RVD Markets has published the initiation of bankruptcy notice on its homepage:
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As RVD Markets declared bankruptcy, the clients of broker are very worried about regaining their locked funds and have stated online on forex forums their utmost concerns. Especially, now there have been question marks placed on the current forex regulation in Russia upon the client funds segregation and disbursement in case of insolvency. When assessing the bankruptcy message of RVD Markets closely it states: “It will be defined sequences of payments to clients after completion of procedure of bankruptcy, unblocking holds of funds in payment systems and banks and realization of liabilities of the company in the form of the software.”
From the looks of it, it could potentially signal that the client funds will be repaid after the liabilities and payments of the holding will be met. Meaning, that RVD Markets could have been not segregated at all. Nevertheless, more clarification is expected on the matter, so stay tuned with AtoZ for the latest updates.