NFA Talks with CFTC about Proposed Forex Leverage Reduction

President of NFA Dan Roth and CFTC Commissioner Jill Sommers Discuss Leverage Proposal
On Friday, Dan Roth, the president and CEO of the National Futures Association met with CFTC Commissioner Jill Sommers regarding the proposed forex regulations. According to the text of the CFTC comment file regarding the meeting, the discussion primarily centered around the reduction [...]

Mallon P.C. Creates NFA Self-Exam Checklists for Forex CTAs, CPOs, and IBs

Forex CTAs, CPOs, and IBs Will Benefit From Mallon P.C.’s User-Friendly Self-Examination Checklists
The information in the following press release from hedge fund law firm Mallon P.C. applies equally to forex commodity trading advisors (CTAs), commodity pool operators (CPOs), and introducing brokers (IBs).
The full text of the Mallon P.C press release is reprinted below and can [...]

Foreign Exchange Dealers Coalition (FXDC) Evaluates New CFTC Rules On New Website

FXDC Supports Registration Requirement, Strongly Opposes 10:1 Leverage Limit
On January 27, 2010, the Foreign Exchange Dealers Coalition (FXDC) launched its first website which focuses on the new CFTC forex proposals, particularly the new 10:1 leverage limit requirement.  FXDC formed in 2007 as an alliance of the largest U.S. forex dealers (GFT, Oanda, IBFX, Gain Capital, [...]

Forex Industry Overwhelmingly Against Lower Leverage

Backlash Against CFTC Proposed Forex Regulations
The CFTC proposed forex regulations have sparked a backlash against the U.S. regulatory agency.  The forex community has had plenty to say about the proposal which would decrease leverage from 100:1 (25:1 for non-majors) to 10:1.  This leverage reduction provision has been the focus of the community even as [...]

Forex Leverage Significantly Reduced by Proposed CFTC Regulations

Controversial New Forex Rules Upset Industry
(www.forexlawblog.com)
The 193 pages of proposed rules by the CFTC do much more than simply require managers to register as forex CTAs, CPOs or IBs - they also significantly reduce the amount of leverage which is available to ALL forex traders who trade through US based FCMs and RFEDs.  Obviously this [...]

NFA Changes Compliance Rule for Forex CPOs and Forex CTAs

The NFA announced that they are repropsing NFA Compliance Rules 2-41 and 2-42 to make it harder for forex pools to be “eligible contract participants” and therefore out of the NFA purview.  The proposed amendments will be effective upon 10 days notice to the CFTC unless the CFTC opposes the changes.  The release is reprinted [...]

Forex Disclosure Documents

While we wait for more information to come from both the CFTC and the NFA on the new forex registration rules for Forex CPOs, Forex CTAs, Forex IBs and Forex Aps, we are also providing managers with information on what the rules will likely look like.
From the statements by the NFA we believe that the [...]

NFA Discusses Future Forex Rules and Forex Registration

The press release below from the NFA discusses the coming registration requirements for those forex managers which engage in advising clients on off-exchange foreign exchange transactions.  It is expected that registration will be required very shortly and managers, including forex hedge fund managers, will need to be registered as a “Forex CPO.”  These managers will [...]

NFA Gets Ready for Forex Registrations

The NFA is getting ready to begin processing applications for all of the new Forex registrations which will need to be completed once the CFTC approves rules that require the registration of managers who advise on retail off-exchange forex transactions. If you currently manage spot forex accounts or forex hedge funds you will need to [...]