Forex Dealer Member Financial Requirements
Felix Shipkevich - February 22, 2010Financial Requirements Section 11(b) and (c) prohibit Forex Dealer Members (FDMs) from including assets held at unregulated persons as current assets for purposes of determining adjusted net capital and from using such unregulated persons to cover currency positions.
Minimum Net Capital Requirements for Futures Commission Merchants and Introducing Brokers
Felix Shipkevich - February 22, 2010Pursuant to Section 17(j) of the Commodity Exchange Act, as amended, the NFA hereby submitted to the CFTC proposed amendments to Financial Requirements Section 1 regarding minimum net capital requirements for futures commission merchants and introducing brokers.
NFA may make effective proposed amendments regarding the use of internet and on-line social networking groups
Felix Shipkevich - January 5, 2010NFA has received notice from the Commodity Futures Trading Commission (”CFTC”) that NFA may make effective certain proposed amendments regarding the use of internet and on-line social networking groups when communicating with the public. The Interpretive Notice entitled “Use of On-Line Social Networking Groups to Communicate with the Public” makes clear that on-line communications are [...]
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 proposes amendments to Financial Requirements Section 15 regarding FDM internal financial controls
Felix Shipkevich - December 3, 2009Financial Requirements Section 15 currently requires firms to provide NFA with an internal control report prior to acting as an FDM. This report must be prepared by an independent public accountant registered with the Public Company Accounting Oversight Board and must include representations by the accountant that the FDM’s internal financial controls have no material [...]
NFA amends Code of Arbitration and Member Arbitration Rules
Felix Shipkevich - September 17, 2009The amendments modify the monetary thresholds for determining whether a case is processed as a summary proceeding or an oral hearing and the number of arbitrators NFA appoints to a case. The rule changes will apply to all cases filed on or after October 1. The NFA has increased the standard threshold for three arbitrator [...]
Members must retain a registered Principal over whom NFA has jurisdiction
Felix Shipkevich - June 9, 2009Failure to retain at least one Principal registered as an “associated person” will henceforth be regarded by the NFA as a request to withdraw from NFA membership, unless membership is in the contract market category.
New security deposit requirements cap leverage
Felix Shipkevich - February 23, 2009FDMs must collect security deposits of 1% of notional value on major currency pairs and 4% on other currency pairs. FDMs that maintain 150% of their capital requirement will be exempted. The Interpretive Notice cites customer safety as a reason for the leverage restrictions. It also notes that the new standards bring security deposit requirements [...]
New capital requirements for FDMs
Felix Shipkevich - February 23, 2009In addition to the $20 million required by the CFTC Reauthorization Act of 2008, FDMs with over $10 million in customer liabilities and will be subject to capital requirements that take into account their total liabilities. FDMs that execute customer transactions exclusively via STP will be exempted. In general, the following formula will apply:
Amount required [...]
