CFTC Seeks Public Comment on Proposed Regulations Regarding Retail FOREX Transactions
Felix Shipkevich - January 13, 2010Proposed regulations would require the registration of counterparties offering retail foreign currency contracts as either futures commission merchants (FCMs) or retail foreign exchange dealers (RFEDs), a new category of registrant created by the Farm Bill.
HSBC launches Bangladeshi Taka – US dollar derivative
Felix Shipkevich - December 9, 2009HSBC has transacted two US dollar-taka options for Viyellatex, one of the largest garment exporters, and Coats Bangladesh, a leading supplier of yarn and raw materials. The US dollar-taka derivative helps exporters and importers hedge their forex exposures effectively, Tarique I Khan, head of global markets of HSBC, Bangladesh, told reporters at the launch of [...]
NFA guidelines on the use of social networking groups
Felix Shipkevich - December 8, 2009On-line Social Networking Groups – Proposed Amendments to NFA’s Compliance Rule 2-29(h) and Adoption of Interpretive Notice
On-line social networking groups have changed the way people make trading decisions. A number of NFA Members sponsor blogs, chat rooms, and forums (also called message or bulletin boards), and some use sites like Facebook or Twitter for business [...]
NFA proposes amendments to the Interpretive Notice regarding Forex Transactions
Felix Shipkevich - December 3, 2009NFA Bylaw 1301(e) requires Forex Dealer Members to pay annual dues that are
graduated according to the firm’s gross annual revenue from customers (e.g.,
commissions, mark-ups, mark-downs) for its forex activities. Profits and losses
from proprietary trades are not to be included. To calculate dues:
• Start with the FCM dues imposed by NFA Bylaw 1301(b)(ii);
• Add $44,375 if [...]
NFA ACTION – James C. Morton
Felix Shipkevich - November 25, 2009The NFA barred James C. Morton from acting as a principal of an NFA Member for a period of five years and also ordered him to pay a fine of $10,000 in the event that he reapplies for NFA membership or associate membership. The
Decisionas to Morton, which was issued by an NFA Hearing Panel, accepted [...]
CFTC ACTION – Oxford Global Advisors et al.
Felix Shipkevich - November 24, 2009The CFTC charged a Minneapolis money manager and a Burnsville radio personality with running a Ponzi scheme that defrauded at least 1,000 people out of more than $190 million in a bogus currency investment scheme.
The CFTC obtained emergency orders freezing the assets held by “self-proclaimed” money manager Trevor Cook, 37, of Apple Valley, and conservative [...]
South Korea subjects banks to new regulations on forward deals
Felix Shipkevich - November 19, 2009South Korea has tightened control over foreign exchange liquidity. The Financial Services Commission watchdog said the measures would enhance the soundness of banks’ foreign currency assets but were not intended to curb the won’s advance. One measure called on banks to hold at least 2 percent of their total foreign assets in foreign treasury bonds [...]
Congress to remove exemption for foreign exchange swaps and forwards from new central clearing requirements
Felix Shipkevich - November 18, 2009The US Congress will remove the exemption for foreign exchange swaps and forwards from new central clearing requirements when two over-the-counter derivatives reform bills moving through the House of Representatives are reconciled on the House floor early next month. The forex exemption is the legacy of the 1974 Treasury Amendment to the Commodities Exchange Act. [...]
Brazil implements new measures for the currency market
Felix Shipkevich - November 15, 2009Brazil’s Treasury Secretary Arno Agustin confirmed new measures for the currency market are on the way.
First, Agustin said “we will resume foreign issues in reais,” as Market News International reported Oct. 9.
But he said since interest rates for real-denominated issues have risen since Treasury’s last off-shore issue in June 2007, “we cannot place a large [...]
CFTC ACTION: Trader’s International Return Network
Felix Shipkevich - October 15, 2009CFTC and SEC filed separate charges against Florida resident David Merrick and Trader’s International Return Network, his Panamanian corporation. The CFTC complaint alleges that “TIRN represented itself as a “private investment club” that provided various investment services, including foreign currency (forex) investing,” misappropriated customer funds, and diverted more than $2 million for Merrick’s personal use.
