NEWS / Foreign Exchange

U.S. FDM's under major threat?

Up-to-date Information
?· The hottest issue: U.S. FDM's under major threat?
?· Read the interviews with some of the main Forex Brokers' CEOs and with Dan Roth, CEO and President for the NFA
?· NFA New Regulations for Brokers: Tony Juste speaks about it

NFA (National Futures Association) has received notice that the Commodity Futures Trading Commission has approved changes to NFA Requirements Section 11 and the Interpretive Notice entitled "Forex Transactions." The amendments increase the minimum net capital requirement for Forex Dealer Members (FDMs) to $5,000,000. They also eliminate the concentration charge and replace it with restrictions on the types of firms with which an FDM may maintain assets and cover its exposure for purposes of CFTC Regulation 1.17. These changes will become effective on December 21, 2007.

But the news are shaking the markets as we have seen that Dan Roth is proposing that only companies that aremainly engaged in Futures business (IE. FCMs) could be allowed to offerForex. As you can imagine, this is a very important issue for FXstreet.com asit could turn the FX industry upside down, not only in the U.S. butworldwide. See the full coverage of this subject on our CEO's blog: U.S. FDM's under major threat?

FXstreet.com has followed the story step by step. You can review the opinion of our guru Tony Juste in the Advisor's Blog or review the transcript of the SPECIAL WEBINAR that he made on September 13th. We also have Francesc Riverola, CEO at FXstreet.com, following the current news in the FXstreet.com Weblog. 

You can review the replies of the CEO's of some of the main FX companies to the open letter that Francesc Riverola sent and see how the CEO's give their opinion about the new regulation.

There's a huge amount of Forums where people's talking about the subject. Check out the threads at:

• ?· FXstreet.com
• ?· Forex Factory
• ?· Oanda

Related Links

Is your forex dealergoing to go out of business? by JohnJagerson at Profiting with Forex

Brokers against which the NFA has taken legalaction:

• ?· One WorldCapital
• ?· ForwardForex
• ?· Cal FinancialCorporation
• ?· NationsLLC

Other interesting links from theNFA:

• ?· Forex Dealer MemberFinancial Requirements
• ?· Security Deposits forForex Transactions with Forex Dealer Members
• ?· Forex Dealer MemberWeekly Reports

Check a full list of regulated brokers on our Forex Brokers Table and find out which brokers are currently passing on the new standards.

A/O Date: 31/08/2007

A/O Date: 31/08/2007