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 [...]
Forex Law Question – Forex Managers and the Series 7 Exam
Question: If I trade spot forex in a fund structure, do I need a Series 7 exam license?
Answer: If a hedge fund manager trades in the spot off-exchange foreign currency (forex) markets and is not associated with a broker dealer, then the investment activities of the manager do not require a series 7 exam license.
Forex Hedge Fund Group Ordered to Pay Penalties for Forex Fraud
In one of the more interesting forex fraud actions I have seen, a forex hedge fund acted as a counterparty to transactions with retail investors. Generally off-exchange foreign currency trades with retail customers can only be completed by firms which are Futures Commission Merchants or Forex Dealer Members, and who are also registered with the [...]
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 Hedge Fund Marketing - Discussing a Forex Hedge Fund with Potential Investors
Forex managers who wish to market their hedge funds will have a variety of different options for their hedge fund marketing campaign. The manager may with to establish a forex website for his investors, submit the fund’s results to a forex database, and network with potential forex investors through various industry events. Any such marketing [...]
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 Hedge Fund Fraudsters Fined by CFTC
Release: 5573-08
For Release: November 25, 2008
Michigan-Based Aurifex Commodities Research Co. Ordered to Pay a Total of $150,000 in Restitution and Civil Monetary Penalties to Resolve CFTC Charges of “Private Hedge Fund” Fraud
Forex Hedge Fund Risks
Risks of Forex Hedge Funds
The off-exchange foreign currency markets are unique and pose certain risks to the investor. Forex hedge fund managers must make sure that they inform their investors of the unique risks of investing in the forex hedge fund and in the off-exchange foreing currency markets. Your forex attorney will be able to [...]
Dunn v. CFTC
SUPREME COURT OF THE UNITED STATES
No. 95-1181
WILLIAM C. DUNN and DELTA CONSULTANTS, INC., PETITIONERS v. COMMODITY FUTURES TRADING COMMISSION et al.
on writ of certiorari to the united states court of appeals for the second circuit
[February 25, 1997]
Justice Stevens delivered the opinion of the Court.