New NFA Forex Rules Approved
New Forex Rules Set to Become Effective Soon
(www.forexlawblog.com) The NFA issued a press release, reprinted below, stating that the CFTC has approved certain proposed rules by the NFA regarding off-exchange foreign currency trading (forex). For NFA Member firms which trade in the forex markets, there are new compliance rules which they will need to adhere [...]
Forex Hedge Fund Manager Registration Webinar
The NFA just announced that it will post a webinar for those CPOs and CTAs who file their disclosure documents electronically through the NFA’s system. Once forex hedge fund registration, and forex registration in general, is required (expected later this year) the webinar will also apply to those forex CPOs and forex CTAs who are [...]
NFA Proposes New Forex Compliance Rule
The NFA has proposed a new Compliance Rule 2-44 regarding Forex Customer Statements. The NFA has also proposed related amendments to the Interpretive Notice regarding Forex Transactions. The new proposed Rule 2-44 provides guidance to Forex Dealer Members (FDMs) on how they should provide customer statements to their customers.
The major addition is Rule 2-44 which [...]
What are some common terms for forex hedge funds (forex commodity pools)?
Many forex managers who decide to start forex hedge funds have a great understanding of their forex investment strategy but are not quite sure what should be the terms of their hedge fund. This article will provide an overview of some of the more common terms for a forex hedge fund (fees, lock-ups, withdrawals, etc). [...]
Forex Regulation Scenarios
Our forex attorneys have spoken with the NFA on numerous occasions with regard to a variery of off-exchange foreign currency trading issues. In addition to discussing issues with regard to forex disclosure documents, we have also discussed certain forex regulation scenarious. [Please note: these scenarios were discussed with the NFA prior to the discussion of [...]
Forex Managers – Forex Hedge Fund Managers
There are many different types of forex managers who pursue many different types of forex trading strategies, either through forex managed accounts or through the forex hedge fund structure. This article will attempt to discuss forex managers (and forex hedge fund managers) in general. If you have any specific questions, please feel free to contact [...]
PIP Sharing with Forex Dealer Members (Pip Rebates)
The forex industry has many supporting players in addition to managers and investors. One group which tries to hook investors up with managers or managers up with forex dealer members are what are called “introducing brokers.” The way that many introducing brokers are compensated, with specific reference to off-exchange forex transactions, is through a pip [...]
Forex Tax Issues - Notice 2007-71
This notice effective reverses a previous IRS Notice (see IRS Notice 2003-81). Many forex tax practitioners used Notice 2003-81 as justification for treating off-exchange foreign currency transactions as available for taxation as Section 1256 contracts in order to receive 60/40 treatment on any such gains in the spot forex market. After this notice it is [...]
Forex Tax Issues - IRS Notice 2003-81
Prior to the IRS’s recent Notice 2007-17, tax practitioners used the principles from this case to argue that forex managers, with regard to spot forex transactions, could opt into Section 1256 status for such transactions. This tax treatment is obviously very valuable for forex managers and made a very good reason forex managers to establish [...]
Forex Law Case: CFTC v. Erskine
Along with CFTC v. Zelener, this is the case which got Congress to move toward regulation of the off-exchange foreign currency markets.
Appeal from the United States District Court
for the Northern District of Ohio at Cleveland.
No. 04-00016—Christopher A. Boyko, District Judge.
Argued: July 25, 2007
Decided and Filed: January 9, 2008
Before: BATCHELDER and DAUGHTREY, Circuit Judges; ACKERMAN, District [...]