Forex Hedge Fund Information and Resources
Many forex professionals have experienced a great deal of success trading and investing in the forex markets. These professionals, however, often aren’t sure where they should go for great information on forming a forex hedge fund. We have compiled the resources below for forex managers.
How to Start a Forex Hedge Fund
Once a forex manager is [...]
NFA Interpretive Notice Re: Past or Projected Performance
The following interpretive notice is generally directed at those NFA Members who are also registered as broker-dealers with the SEC. The notice is designed to give these Members an overview of the requirements for past and projected performance. While almost all Members which engage in the off-exchange forex markets will not be subject to the [...]
NFA Compliance Rule 2-9
RULE 2-9. SUPERVISION.
(a) Each Member shall diligently supervise its employees and agents in the conduct of their commodity futures activities for or on behalf of the Member. Each Associate who has supervisory duties shall diligently exercise such duties in the conduct of that Associate’s commodity futures activities on behalf of the Member.
NFA Interpretive Notice Re: Radio and Television Advertisements
The interpretive notice below reviews the requirement for Members to submit all radio and television ads to the NFA for review within 10 days of the anticipated distribution date. Additionally, the notice reminds members that their advertising cannot contain a variety of misleading information as detailed in other interpretive notices. These prohibited practices include certain [...]
NFA Interpretive Notice Re: High Pressure Sales Tactics
NFA Compliance Rule 2-29 bars Member firms and Associated Persons from using high pressure sales tactics. While the term is not defined, the NFA interpretive notice below gives a few non-exclusive examples of conduct which would fall under the “high pressure sales tactics” category. These include: creating a sense of undue emergency for the customer, [...]
NFA Interpretive Notice Re: Deceptive Advertising II
This interpretive notice comes on the heels of another notice issued by the NFA also dealing with deceptive advertisements (see NFA Interpretive Notice on Deceptive Advertising). This notice goes further than the first notice and defines more practices which the NFA believes are deceptive. These practices include: certain marketing practices which discuss leverage and providing [...]
NFA Interpretive Notice Re: Deceptive Advertising
Here the NFA provides specific examples of advertising which it believes misleads potential investors. Those managers which wish to engage in any of the practices listed below should discuss the advertisement in question with a forex attorney.
With regard to current NFA members who engage in trading or advising on off-exchange forex transactions, this may apply [...]
NFA Interpretive Notice Re: Hypothetical Performance Results
One of the most important area of the forex disclosure documents is the discussion of past results. Of increased importance in this area is the disclosure of hypothetical trading results. The CFTC and the NFA believe strongly that hypothetical performance results must be presented in marketing materials in a fair and balanced way.
The release below [...]
NFA Interpretive Notice Re: Review of Promotional Material (NFA Rule 2-29)
This article provides an overview of an interpretive notice to NFA Compliance Rule 2-29 which applies to current NFA Members (generally commodity pool operators and commodity trading advisors). In this interpretive notice the NFA outlines its review program for promotional materials submitted by NFA members prior to the first use of the promotional materials. Generally [...]
NFA Compliance Rule 2-29
RULE 2-29. COMMUNICATIONS WITH THE PUBLIC AND PROMOTIONAL MATERIAL.
(a) General Prohibition.
No Member or Associate shall make any communication with the public which:
(1) operates as a fraud or deceit;
(2) employs or is part of a high-pressure approach; or
(3) makes any statement that futures trading is appropriate for all persons.