Senator Orrin Hatch Comments on Proposed Forex Regulations
“Concerned” about “severe impact” of regulations
On March 9, 2010, Utah Senator Orrin G. Hatch submitted a comment letter to the CFTC regarding the proposed retail forex regulations. Senator Hatch takes the stance that the CFTC should not reduce the levergage requirement from 100:1 to 10:1.
“I am told this provision may result in many retail Forex [...]
Frontline Financial, Inc. Permanently Banned From NFA; Owner Charles G. Rice Must Withdraw from NFA for 5 Years
Dallas CPO/CTA Frontline Financial, Inc. & Owner Charles G. Rice Charged with NFA Compliance Violations
On February 18, NFA issued a press release detailing its settlement with Dallas-based commodity pool operators (CPOs) and commodity trade advisors (CTAs) Frontline Financial, Inc. (FFI), Frontline Advisors LLC (FAL), and Charles G. Rice (Rice). FFI and FAL agreed to be [...]
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 [...]