The Brokers (re) Evolution

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NFA New Regulation

Tue, Sep 4 2007, 10:13 GMT
by Marina Schiaffino

FXstreet.com


Up-to-date Information
· The Brokers (re) Evolution: The CEO's reply
· NFA New Regulations for Brokers: Tony Juste speaks about it


NFA RegulationThere has been a lot of street talk in the Forex World regarding the new NFA (National Futures Association) regulation for Forex Dealers, whose main consequence is the raise of the required minimum capital to $5Million in cash plus a percent of the customer funds being held.

In real numbers this should account for about $7-$11Million initial cash, a much higher value that the actual requirements of the NFA which ask for just $1Million of net capital.

The "Currency Trader" magazine states that the new regulation could potentially wipe out 90% of existing forex brokerages, although it’s likely major consolidation would occur if the rule passes.

You can review the opinion of our guru Tony Juste in the Advisor's Blog or check a full list of regulated brokers on our Forex Brokers Table. 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:


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:

Other interesting links from the NFA:


Brokers above 5 Million Net Capital
Futures Commission MerchantDSRO Adjusted Net CapitalNet Capital RequirementExcess Net Capital
GLOBAL FUTURES & FOREXCFTC49.664.1185.000.00044.664.118
OANDA CORPORATIONNFA49.222.3175.000.00044.222.317
FOREX CAPITAL MARKETS LLCNFA44.626.4925.000.00039.626.492
FOREX LIQUIDITY LLCNFA38.991.0555.000.00033.991.055
GAIN CAPITAL GROUP LLCNFA18.930.9145.000.00013.930.914
FX SOLUTIONS LLCNFA17.295.1305.000.00012.295.130
PEREGRINE FINANCIAL GROUP INCNFA13.758.6385.000.0008.758.638
CAPITAL MARKET SERVICES LLCNFA12.087.0455.000.0007.087.045
IFX MARKETS INCNFA10.378.7045.000.0005.378.704
INTERBANK FX LLCNFA8.584.4345.000.0003.584.434
GLOBAL FUTURES LLCNFA8.169.4085.000.0003.169.408
IFSCL USA INCNFA7.591.2325.000.0002.591.232
ODL SECURITIES INCNFA6.551.8595.000.0001.551.859
HOTSPOT FXR LLCNFA5.250.7385.000.000250.738

A/O Date: 06/30/2007

Brokers under 5 Million Net Capital
Futures Commission MerchantDSRO Adjusted Net CapitalNet Capital RequirementExcess Net Capital
EASY FOREX US LTDNFA4.810.0575.000.000-189.943
I TRADE FX LLCNFA3.957.3575.000.000-1.042.643
3D FOREX, LLCNFA3.653.7645.000.000-1.346.236
MONEY GARDEN CORPNFA3.584.6495.000.000-1.415.351
E FX OPTIONS LLCNFA3.158.8955.000.000-1.841.105
GFS FOREX & FUTURES INCNFA2.959.9205.000.000-2.040.080
FOREX CLUB FINANCIAL COMPANY INCNFA2.645.3345.000.000-2.354.666
ONE WORLD CAPITAL GROUP LLCNFA2.308.4605.000.000-2.691.540
FOREX INTERNATIONAL INVESTMENTS INCNFA2.133.9715.000.000-2.866.029
BACERA CORPORATIONNFA1.766.8825.000.000-3.233.118
CMC MARKETS (US) LLCNFA1.670.8835.000.000-3.329.117
SNC INVESTMENTS INCNFA1.524.3815.000.000-3.475.619
DIRECT FOREX LLCNFA1.458.5405.000.000-3.541.460
FORWARD FOREX INCNFA1.232.3615.000.000-3.767.639
ROYAL FOREX TRADING LLCNFA1.171.1435.000.000-3.828.857
IG FINANCIAL MARKETS INC.NFA1.006.7045.000.000-3.993.296
FXCM LLCNFA764.2415.000.000-4.235.759
NATIONS INVESTMENTS LLCNFA-1.162.2905.000.000-6.162.290

A/O Date: 06/30/2007

Published on  Thu, Sep 13 2007, 13:37 GMT

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