Legal Regulation of FOREX Market

The purpose of this research is to study the dynamics of the Forex market legal regulation in Russia to identify the main trends and ways of development. To do this, it is necessary to solve the following tasks: to disclose the currency market concept, to determine the regulatory bodies at the national and international levels, to characterize the main participants, the Forex dealers' activity, to review the principles of its operation, the risks of trading and legal guarantees for traders, features of international, Russian and foreign practice of the Forex legal regulation, to explore the mechanisms of taxation. Approbation of this scientific research was held in Peoples' Friendship University of Russia at the international scientific conference «Law. Society. State: problems of theory and history» which resulted in a compilation of a scientific publication on the topic: «Comparative legal analysis of the Forex legal regulation in Russia and foreign countries». The master's paper consists of an introduction, three chapters, fifteen paragraphs, conclusion and a bibliographic list. Chapter I examines the main characteristics of the Forex market. Chapter II analyzes legislation and legal restrictions for the Forex market. Chapter III is devoted to Forex in foreign countries and judicial practice. On the basis of the analysis, the following conclusions are formulated: Sometimes Forex dealers do not withdraw funds from customers to the real Forex market, making internal clearing - by meeting counter orders of their clients. As a result, such activities may be out of legal regulation. Most Forex brokers operate in China through a Hong Kong Forex broker license. Trading in the Forex market is very risky, since there is a risk of manipulation of quotes and unfair behaviour of the Forex dealer.