New Forex Regulations: Overview of Public Comments
Leverage, Inaccessibility for Smaller Traders, and Offshore Threat are Focus of Public Comments
As we’ve discussed in related posts, the CFTC has proposed rules regulating the off-exchange spot forex industry (see Retail FOREX Registration Regulations Proposed). The CFTC has requested comments from the public and there are currently about 100 public comments on CFTC’s website written [...]
Capital FX LLC Violates NFA Compliance Rules, Permanently Banned from NFA Membership
Capital FX LLC Charged with Providing False and Misleading Information and Failing to Comply with NFA Investigation
In a February 5 press release, the NFA announced a settlement with Capital FX LLC (CFX) and its sole principal and employee Robert W. Pecord that will permanently bar the commodity trading advisor (CTA) from future NFA membership.
CFX and [...]
Failure to Comply with NFA Rules Could Result in NFA Membership Suspension or Expulsion and/or Fines
CTA Required to Withdraw From NFA Membership for Compliance Violations
On August 25, 2009, the National Futures Association’s (NFA) Business Conduct Committee (BCC) filed a complaint against Las Vegas commodity trading advisor (CTA) NetBlack Capital LLC and its principal/associated person (AP) John Francis Netto. NetBlack, an NFA Member CTA since November 2008, was charged with violating [...]
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 [...]
CFTC Seeks Public Comment on Possible Changes to Regulations for Investment of Funds Deposited with Clearing Organizations and Futures Commission Merchants
The Commodity Futures Trading Commission (CFTC) has approved for publication in the Federal Register an advance notice of proposed rulemaking seeking public comment on possible changes to its regulations regarding the investment of customer funds segregated pursuant to Section 4d of the Commodity Exchange Act and funds held in an account subject to Regulation 30.7.
Regulation [...]
NFA Release on Forex Account Statements
[http://www.forexlawblog.com]
New Rule Requires Better Reporting to Retail Forex Investors
Forex Dealer Members (FDMs) are subject to NFA oversight because they are required to be registered with the CFTC and also to be members of the NFA. On June 1 of this year, FDMs will need to comply with heightened disclosure requirements to their retail forex investors. [...]
FINRA Jumps on Forex Regulation Bandwagon
Regulatory Agency Proposes Leverage Limit
FINRA Member firms which engage in off-exchange forex transactions with retail customers may face leverage limits if a new FINRA proposed rule is adopted. The new rule would limit the leverage which a member firm could provide to a retail forex investor (i.e. an investor who is not an eligible contract [...]
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 [...]
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