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The Brokers (re) Evolution

U.S. FDM's under major threat?

Wed, Oct 31 2007, 15:27 GMT
by Marina Schiaffino

FXstreet.com

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 are mainly engaged in Futures business (IE. FCMs) could be allowed to offer Forex. As you can imagine, this is a very important issue for FXstreet.com as it could turn the FX industry upside down, not only in the U.S. but worldwide. 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 dealer going to go out of business? by John Jagerson at Profiting with Forex

Brokers against which the NFA has taken legal action:

• · One World Capital
• · Forward Forex
• · Cal Financial Corporation
• · Nations LLC

Other interesting links from the NFA:

• · Forex Dealer Member Financial Requirements
• · Security Deposits for Forex Transactions with Forex Dealer Members
• · Forex Dealer Member Weekly 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

Published on  Wed, Oct 31 2007, 15:27 GMT

Archive

• U.S. FDM's under major threat?
  Published On Wed, Oct 31 2007, 15:27 GMT
• Dan Roth, CEO and President for the NFA answers the questionnaire
  Published On Tue, Oct 23 2007, 15:15 GMT
• NFA New Regulation
  Published On Thu, Sep 27 2007, 15:38 GMT
• NFA New Regulation
  Published On Tue, Sep 4 2007, 10:13 GMT

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