Prohibition of loans by commodity pools to CPOs and affiliates
Felix Shipkevich - May 27, 2009NFA Compliance Rule 2-45 prohibits direct or indirect loans or any advance of pool assets between a pool and its CPO or any other affiliated person or entity, though participants, including a CPO’s principal, may barrow against their equity interests in a pool. Exemptions are to be handled on a case by case basis.
Articles of Incorporation amended to “provide NFA with additional flexibility regarding FCM representation” on its Board
Felix Shipkevich - May 18, 2009Effective May 18, the NFA’s Articles of Incorporation will mandate that the FCM Nominating Committee fill the NFA’s eight FCM dedicated Board seats by drawing two representatives from top ten ranked FCMs, two from non-top ten FCMS, and four at large.
MAS signs MoU with QCB
Felix Shipkevich - May 7, 2009The Monetary Authority of Singapore signed a Memorandum of Understanding with Qatar Central Bank, which provides a formal basis for supervisory cooperation and technical assistance between the two parties. This comes as Qatari banks are expanding their presence in Singapore.
Offsetting transactions, Compliance Rule 2-43(b)
Felix Shipkevich - May 5, 2009The NFA will require that FDMs close trades on a first-in first-out basis beginning July 31, 2009. This effectively prevents them from facilitating the practice known as hedging, where a trader opens two canceling positions in the same account. Rule 2-43(b) is as follows:
Forex Dealer Members may not carry offsetting positions in a customer
account but [...]
